According to the Malaysian Palm Oil Board (MPOB), the country has voluntarily agreed to cut greenhouse gas emission intensity by 45 percent by 2030 relative to emission intensity gross domestic product (GDP) in 2005 as part of the commitment to the 2015 United Nations Climate Change Conference (COP21).
Malaysia reiterated the commitment made at the Rio Summit in 1992 to retain at least 50 percent of the land under forest cover. In 2017, the area under forest cover in Malaysia is at 55.6 percent.
“The country uses a circular economy in its framework for sustainable palm oil industry which means that Malaysia approaches sustainability from the input process to the output process. Likewise, to be environmental centred in improving productivity and yield, rather than expanding land for input.
For output, Malaysia will look on to reduce wastes and emissions while promoting the uses of renewable resources, lower energy usage, less water footprints, reduce waste and contaminant-free,” MPOB Desk Officer for Europe (EU) Region, Rafizah Mazlan Rafizah said.
She emphasised that the usage of palm oil is much more sustainable as palm oil requires the least fertilizers and oilseed crops. Palm oil is also efficient compared to others as the crop only takes 0.26 hectares to create one tonne of vegetable oil.
Additionally, palm oil imports contributed widely throughout the global economy including food, energy, and multiple consumer products.
The imports have generated over US$44 billion of traded palm oil associated with an indirect contribution to value added in downstream industries of nearly US$17 billion.
According to MPOB, Malaysia is the fourth world largest producer of oils and fats with 17.37 million tonnes, 18.3 percent of total global oils and fats exports, and contributed 34.3 percent in the global palm oil trade.