PALMOILMAGAZINE, KUALA LUMPUR — The issue of palm oil sustainability once again took center stage at the Roundtable on Sustainable Palm Oil (RSPO) RT2025 in Kuala Lumpur. Amid cross-sector collaboration efforts, concerns emerged over the worsening situation faced by certified smallholder farmers who are struggling with a stagnating sustainability credit market.
During the forum, Sascha Tischler from relations Gesellschaft für Kommunikation mbH—an active member of the Forum Nachhaltiges Palmöl (FONAP) network—shared insights from a recent discussion involving FONAP members such as CarbonSpaceTech, Koltiva, and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. Yet, behind the optimistic exchanges, a troubling conversation unfolded with representatives from the Oil Palm Smallholders Union (SPKS), Sabarudin and Maryanti Taufik.
According to Tischler, the meeting revealed an uncomfortable reality on the ground. Sabarudin, Chairman of SPKS, stated that the credit market for RSPO-certified smallholders has nearly collapsed. Many SPKS members who have met sustainability standards can no longer sell their palm oil as certified sustainable products.
Also Read: Close the Gap: Support Certified Smallholders through Direct Buying and Fair Credit Purchases
“The credit market for smallholders has practically stopped functioning. Many of our members have lost access to sell their harvests as sustainable products,” said Sabarudin, as quoted by Palmoilmagazine.com from Sascha T’s LinkedIn post, Thursday (6 November 2025). “We’ve raised this issue repeatedly with both RSPO and FONAP, urging for a strong and practical solution for smallholders.”
This credit market crisis is not new. From 2023 to 2024, several organizations representing smallholders voiced similar concerns—particularly following the implementation of the European Union Deforestation Regulation (EUDR), which tightened access for commodities entering the European market. As a result, many independent smallholders have felt increasingly excluded from the global supply chain, despite their efforts and investments in achieving sustainability certification.
The situation raises a critical question: does RSPO certification still bring tangible value to smallholders if the supporting market system no longer functions effectively?
In response, Tischler emphasized the need to explore alternative and ethically driven certification systems, such as the Union for Ethical BioTrade (UEBT) and its Sourcing with Respect framework, which prioritize fairness and social sustainability.
This year, FONAP has also started recognizing new certification combinations—particularly UEBT and EU Organic—as credible alternatives for companies committed to sustainable palm oil. According to Tischler, such models could help independent smallholders re-enter global supply chains through more inclusive and market-aligned certification pathways.
The RSPO RT2025 forum served as a vital reminder that amid global sustainability campaigns, the well-being of smallholders must remain at the heart of the conversation. Without a fair and functioning market system, the noble goals of sustainable certification will remain difficult to achieve—both socially and economically. (P2)
