Sustainability certifications, approaches, and tools for oil palm in Indonesia and Malaysia

Various approaches and tools have been developed to promote sustainable production of palm oil, including sustainability standards and certification systems (both voluntary and mandatory), jurisdictional approaches as a pathway for sustainable sourcing of commodities within political boundaries, and tools assessing sustainability performance. This study (part of the broader EU-funded KAMI – Sustainability of Indonesian and Malaysian Palm Oil – project) compares existing sustainability certifications, approaches, and tools addressing the oil palm sector in Malaysia and Indonesia, especially in regard to environmental thresholds, inclusion of smallholders, social protections including for indigenous peoples, and operational modalities.

Support for jurisdictions in Indonesia and Malaysia to transition to sustainability

This study conducted by CIFOR-ICRAF (as part of the EU-funded KAMI – Sustainability of Malaysian and Indonesian palm oil – project) examines and evaluates the interventions or existing support available for jurisdictions to transition to sustainability, which includes the consideration of economic, environmental, and social aspects of a sustainable palm oil value chain that is inclusive, reduces pressure on forests/deforestation-free, protects the environment, and promotes responsible business practices. Existing support or interventions in this study are defined as any policy, program, or initiative with a stated objective of helping to transition to sustainability and operating within oil palm producing landscapes.

Balancing Ambitions and Realities: Stakeholder Perspectives on Jurisdictional Approach Outcomes in Sabah’s Forests

The jurisdictional approach concept emerged in response to the widespread failure of sectoral forest conservation projects. Despite its increasing popularity, understanding jurisdictional approach outcomes is challenging, given that many remain in either the formation or implementation stage. Furthermore, diverse stakeholders hold different perspectives on what exactly a jurisdictional approach is intended to pursue. These different perspectives are important to unravel, as having a shared understanding of the outcomes is important to build the critical support needed for it. This study aims to add to the limited evidence with a case study in Sabah, Malaysia, which is committed to addressing a leading deforestation driver (palm oil) through sustainability certification in a jurisdiction. We used Q-methodology to explore stakeholder perceptions, revealing three distinct perspectives regarding what outcomes jurisdictional approaches should pursue. We asked about outcomes achievable within ten years (2022–2032) and considering real-world constraints. We found different perspectives regarding economic, environmental, governance, and smallholders’ welfare outcomes. However, we found consensus among stakeholders about some outcomes: (i) that achieving zero-deforestation is untenable, (ii) that issuing compensation or incentives to private land owners to not convert forests into plantations is unrealistic, (iii) that the human well-being of plantation workers could improve through better welfare, and (iv) the free, prior and informed consent given by local communities being required legally. The findings offer insights into key stakeholders’ perceptions of the deliverables of jurisdictional approaches and the difficulty of achieving its objectives under real-world constraints.

A review of the participation of smallholder farmers in land-based carbon payment schemes

Carbon credit certification standards stipulate local community participation in the project cycle, but evidence and guidelines for effective smallholder participation are not harmonised and vary across standards. Projects that strengthen social capital can stimulate participation among the marginalized, reduce transaction costs, and promote equity and smallholder agency. The main incentives for farmers participation in carbon payments schmes are non-monetary, these include: improved yields, access to financial advisory services and credit, investments in local infrastructure and the development of income-generating activities.

Positive Influence of Certification on the Financial Performance of Cocoa Production Models in Cameroon

Cameroon plans to double its cocoa production in the coming decade in line with international requirements for sustainable and deforestation-free cocoa. Private certification, which has developed considerably in recent years, should help achieve this objective. Based on a literature review and 63 individual interviews with farmers, we identified four archetypes of cocoa production using the criteria of plantation size, degree of shade, and support from public or private extension services. We analyzed the average operating accounts of the four archetypes. Our findings show that the net profit rates obtained by small-scale certified producers are 14% (in the savannah zone) and 24% (in the forest zone). These rates are much higher than for the other two production models. Certification schemes provide technical and financial support, which has a positive influence on the practices of many small-scale producers and compensates for the lack of public services, which are now almost non-existent. A hybrid governance of the cocoa sector in Cameroon could clarify and improve the organization of the interactions between public regulation and private certification systems.

Perceptions of wood-processing industries on FLEGT implementation: Insights from Vietnam

This paper analyses timber and wood processing companies’ views on opportunities and challenges for FLEGT implementation in Vietnam based on a literature review, online surveys with 56 timber and wood processing companies, in-depth interviews with 26 stakeholders from different institutions, and a consultation workshop involving 94 participants. Our paper shows that FLEGT has received increasing attention and political support from the Government of Vietnam, which has issued new policies on sustainable forest management, forest certification and financial incentives to enable timber and wood processing companies to participate in FLEGT. The active presence of civil society organizations has helped improve forest governance, which is a key aspect of FLEGT. Perceiving FLEGT as a global market trend able to generate higher profits, timber and wood processing companies see opportunities to benefit from this timber trading initiative, and are therefore more willing to comply with FLEGT requirements. However, these companies also highlight challenges to implementing FLEGT on the ground, including unclear and inconsistent policies, weak monitoring and evaluation, high transaction costs, companies’ limited access to information, unclear tenure and erratic land-use planning, and the weak capacity of household and small-scale enterprises. Effective implementation of FLEGT requires regulatory changes, improved law enforcement and translation of policies on the ground, enhanced information exchange between stakeholders, and addressing underlying problems relating to land tenure and forest governance.

Non-state certification of smallholders for sustainable palm oil in Sumatra, Indonesia

Rapid expansion of oil palm plantations is one of the leading causes of Indonesia’s continued deforestation over the past decades. To reverse this trend against the wave of increasing global demand for palm oil, non-state certification programs, such as the Roundtable on Sustainable Palm Oil (RSPO), have been promoted to ensure sustainable palm oil production. However, limited empirical studies exist for understanding how RSPO is perceived and practiced by various stakeholders along the palm oil supply chain, especially at the source by small-scale farmers. We surveyed 181 certified independent smallholders in two sites in Jambi, Sumatra to understand: (1) the challenges and benefits of participating in RSPO; (2) the willingness of independent smallholders to continue their participation; and 3) the factors affecting their willingness. We found that most of the challenges of RSPO certification are not well understood by smallholders, except the need for organizational support. In both sites, extensive external support from a local NGO was the key factor that facilitated RSPO certification. Most of the respondents recognize both non-financial (e.g. knowledge, market access, and social recognition) and financial benefits (e.g. sales from RSPO credits) of certification. Although overall, direct financial benefits may be small, they can be a motivator for farmers to continue with certification and for others to consider joining the group when disbursed equitably in non-monetary and communal form, such as in shared food. In contrast, indirect and long-term benefits were not enough to motivate smallholders to maintain RSPO certification. This study provides important insights about the characteristics of the leaders (governing members) and factors affecting RSPO participation from actual experiences of certified smallholders. The information can be used to target early adopters to initiate the RSPO process in farmers’ groups and to develop appropriate facilitation strategies at different stages of certification development for independent smallholders.

Sustainability certification: multiple values of nature coexist in value chain transformations toward a common but differentiated responsibility

Sustainability certification narratives are diverse contributing to multiperspective discourses on human–nature value systems. Certification shapes values at the human–nature interface, encompassing instrumental, relational, and intrinsic values. The sustainability certification debate involves four value systems: (1) economic, instrumental value; (2) social, relational value; (3) multiple values of human–nature interactions; and (4) global sustainability values for nature and commons. Despite rich narratives, questions on effectiveness and inclusiveness persist. The effectiveness of certification schemes relies on counterfactuals, and positive impacts occur when embracing inclusivity in supply chains. Accountability at the landscape level aligns with common-but-differentiated responsibility targets. This article reviews multidisciplinary literature on value-for-nature systems, highlighting narrative gaps in sustainability certification’s intended impacts, and providing policy recommendations.

Certifying Borneo’s Forest Landscape: Implementation Processes of Forest Certification in Sarawak

Sarawak has a history of imposing political constraints on natural resource governance. Forest certification is expected to bring important changes to forestry in Sarawak, heralding a new era of forest management. However, the effects of a new environmental regulatory system have yet to be adequately examined, particularly the social consequences of certification which vary depending on the standards employed, audit procedures and the levels of stakeholder participation. This chapter examines experiences to date with forest certification in Malaysia, specifically certification by the Malaysian Timber Certification Council (MTCC) in Sarawak, to investigate the effects of certification on both forest management and rural communities. It is therefore important to focus attention on issues related to both indigenous peoples’ land and natural resources use. The example of Malaysia and the divergent experiences in different states illustrates that the situation on the ground can vary greatly, even with the same forest certification scheme and within the same country.

The Global Biodiversity Standard: Manual for assessment and best practices

This manual describes in detail the Global Biodiversity Standard (TGBS) methodology required for TGBS certification, including the application form, remote sensing and field survey, as well as the assessment process and scoring system. This manual is divided into nine sections, each of which addresses a different aspect of the TGBS and its implementation.

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