PALMOILMAGAZINE, BEIJING – In Western countries, sustainability efforts are largely driven by consumer demand, whereas in China, the shift towards sustainability is propelled by policy mandates and investor pressure.
In 2020, President Xi Jinping pledged that China, the world’s largest polluter, would reach peak emissions by 2030 and achieve carbon neutrality by 2060. Last year, China and the United States agreed to collaborate on halting deforestation.
Domestic regulations, such as the requirement for companies to disclose environmental, social, and governance (ESG) information by 2026, are increasing pressure on Chinese businesses. Additionally, the European Union Deforestation Regulation (EUDR) is expected to further intensify these pressures, according to many analysts.
Also Read: China’s Environmental Commitment: Signaling Sustainable Consumption through Green Regulations
In 2023, Mengniu committed to achieving a zero-deforestation supply chain by 2030 and plans to join the Roundtable on Sustainable Palm Oil (RSPO) this year. Yili is aiming for similar targets, including sourcing soyoil, crude palm oil, and pulp and paper sustainably, and plans to increase its purchase of RSPO-certified palm oil from 50 metric tons in 2024 to 650 metric tons by 2030.
One palm oil producer in Indonesia revealed that palm oil trade to China would be in higher standards. “The country now pays attention to sustainability aspects, not like the past when price was the issue,” he said as Palmoilmagazine.com quoted from thepigsite.com.
COFCO also got targets in 2025 to get zero deforestation from soyoil in ecology sensitive – regions in Latin America, including, Amazon. They got the plans to get sustainable palm oil and coffee supply chain. In January, COFCO International signed memorandum of understanding (MoU) with China Shengmu Organic Milk Ltd. To supply 12.000 tons of free deforestation – soyoil from Brazil and the volume in the MoU would be escalating in phase.
Chief of China RSPO, Fang Lifeng said that certified palm oil demands in the country were dominted by multi-national – companies, such as, L’Oreal and Unilever, but now the demands (imports) are from the local companies. The demands just covered up smaller parts of the imports in the country. Last year, the imports reached 4,3 million tons of palm oil and 99,4 million tons of soyoil.
Costs become the main issue. Free deforestation soyoil could be reaching at US$ US$ 2 to US$ 10 or more per ton while RSPO palm oil could be more than US$ 15 per ton.
A trader in Singapore of international scale – company that operates soyoil mill in China said the volume would not be more than 1% of the total imports. “We did not see the increasing volume significantly,” he said and continued that the pressure from trade capital would help to procure sustainable products.
Sustainability shift in China showed the real change to get more environmental purchase. Even though the challenges are ahead, namely about fee, policy and investors’ pressure would significantly play the role to encourage the country heading to more sustainable future. (T2)
