SUMMARY REPORT:EXPLORING THE REALITY OF THE

JURISDICTIONALAPPROACH

AS A TOOL TO ACHIEVE SUSTAINABILITYCOMMITMENTS IN PALM OIL AND SOY SUPPLY CHAINS

September 2018

© CI/photo by Tory Read

AT A GLANCE
Conservation International conducted a series of interviews with private sector,
government and civil society stakeholders to test assumptions behind theutility of the jurisdictional approach (JA) as a vehicle to achieve commitments
to eliminate deforestation, development on peatlands or exploitation in palm
oil and soy supply chains. Our research confirms that the JA has significant
and important potential to increase government engagement and leadership ofefforts to drive sustainability of agricultural commodity production. Our researchalso highlighted significant challenges that need to be addressed to drive broadtransformation of either sector rather than creating small pockets of sustainableproduction to serve niche markets. These include misalignment of incentives
and capacity in commodity producing regions to drive sustainability as well asa need to define greater benefits at the local level for sustainable commodity
production. International supply chain actors, governments in producing andconsuming countries, donors and civil society must commit to working with
sub-national (state, provincial, local) governments and communities in new andtransformative ways if we are to address the main drivers of deforestation andconflict in commodity supply chains.

INTRODUCTION
Deforestation is one of the most pressing global
environmental challenges today. Agricultural
expansion is the leading driver of tropicaldeforestation, accounting for up to 70-80%
annually. Four globally traded commodities — palmoil, soy, beef and pulp/paper — are responsible formore than 50% of deforestation. Major companies
in the food and agricultural supply chain havemade commitments to end deforestation
associated with agricultural commodity expansion.

To date, corporate efforts have largely focused on
supply chain traceability, verification or certification
programs with the intent to ensure that suppliers
are using sustainable practices. Building on originalcommitments made by large food and beveragecompanies in 2010, these commitments haveemphasized no deforestation, development on
peatlands, or exploitation of people and local
communities in the supply chain, also known as“NDPE commitments.”

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary1

Although these voluntary initiatives reflect important
progress within the industry, market-focusedinterventions alone are proving insufficient to solve
the larger challenges of deforestation, social conflictand exploitation in the supply chain, impacting onlya small segment of key suppliers. This shortfall isin part a result of supply chain initiatives that do
not address the vital role that governments playin allocating, regulating and managing the use ofnatural resources.
In response to this recognized challenge, a numberof initiatives have emerged in recent years that aim
to bridge market- and policy-based approaches
to reducing commodity-driven deforestation.
These “jurisdictional approaches” to sustainablecommodity production and sourcing are placebased initiatives focused on areas defined bypolitical jurisdictions.1 The jurisdictional approach(JA) essentially seeks to create market drivers for
improved governance as goods from jurisdictions
that reduce deforestation and improve sustainabilityof commodity production would, in theory, be more
attractive or valued in those markets demanding
sustainability. By focusing on entire jurisdictions
rather than individual suppliers, the JA also offers
the potential to accelerate and scale sustainablecommodity production initiatives and to be more
inclusive of smallholder producers across thejurisdiction. The impetus for some, but not all, JAs
has been the development of a government-led
jurisdictional program to reduce emissions fromdeforestation and forest degradation (referred to as‘REDD+’).
As this new commodity focused JA is relatively
young, there is wide variability in approach andspecifics of implementation. Generally speaking,implementation of the JA commonly includes amulti-stakeholder forum(s) to secure wide input andsupport; development of action plans or roadmaps
that identify the key social, environmental andproduction goals and challenges in the jurisdiction,
as well as actions needed to address them;and a monitoring or information system to track
implementation of the plan and resulting progress
towards goals.
Better understanding the strengths, weaknesses
and opportunities to refine the JA is a key
component of Conservation International’s
Sustainable Production strategy. Conservation

International (CI) works to conserve nature for the
benefit of people and is committed to transforming
agricultural commodities to a sustainable production
model in which agricultural production enhances
community health and wellness, drives economic
growth and development, and ensures thatnatural resources are conserved and managed
to provide benefits now and into the future. In
agricultural sectors, our efforts are aimed at 100%
sector transformation to sustainable production
as opposed to simply creating small “pockets”
of sustainable production that serve only
niche markets and would fail to address larger,
widespread challenges such as deforestation,
human rights abuse and social conflict.
This research initiative, made possible by the
support of the Walmart Foundation, aims to exploreand “ground-truth” the reality of the JA based on
the needs of market actors potentially sourcing fromJA initiatives and producing-country governments
participating in JA initiatives. We further sought
to shed light on the potential strengths andweaknesses of the JA as it emerges, as well as its
potential value and utility in supporting sector-wide
efforts to reduce deforestation and social conflict
related to agricultural-driven land use change.
Focusing on palm oil in Southeast Asia and soy in
Brazil, our work built on a series of interviews withgovernment officials in jurisdictions that are already
implementing the JA, as well as officials in areas
facing important deforestation challenges, but not
yet significantly engaged. We spoke with NGOs thatare deeply engaged in the JA, specifically those
involved in pilots, implementation and thought
leadership platforms. We further interviewed
representatives from companies in soy and palm
oil value chains, from producers and traders to
consumer goods companies and retailers. Finally,
we examined trade data to better understandcurrent patterns and potential implications ofcommodity trade flows on the development of the
JA and its potential to support 100% transformationof palm oil and soy sectors toward sustainableproduction.
This Summary Report focuses primarily on the
conclusions and recommendations we have drawn
from this work and summarizes the finding from theinterviews and trade flow analysis. The full report
was published in March 2019.

We define a JA as an integrated landscape approach that aims to reconcile competing social, economic and environmental objectives
through participation across stakeholders and sectors, implemented within government administrative boundaries, and with a form ofgovernment involvement.
1

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary2CONCLUSIONS AND RECOMMENDATIONS
Our findings from interviews and research have led to the following
conclusions and recommendations:
Conclusion: Sustainability is emerging as a competitive differentiator for a small
number of commodity-producing jurisdictions.
Trade data indicates that dominant palm oil
producers Indonesia and Malaysia face increasing
competition to sell into the “preferred” markets of
the US and EU. Large American and European palm
oil users, who are often willing to enter into longerterm contracts that are preferable to spot markets
or more transactional business dealings, represent
the primary markets asking for sustainable palm
oil and soy products. It is clear from our interviews
that a small number of sub-national governments
are positioning to differentiate products from theirjurisdictions based on sustainability performance.
This is an extremely encouraging development for
both the soy and palm oil sectors.
Recommendations:• Engage and invest. Companies, donors andNGOs should support governments in thosejurisdictions that have demonstrated commitment
through an inclusive process and clear actions to
reduce deforestation and improve sustainabilityof commodity production. As noted elsewhere,
sustainability at the jurisdictional level is adifficult and long-term process. Implementing
jurisdictional sustainability plans or “road maps”
will be expensive, and government leaders
willing to take on the challenge will need tosee that their courage and commitments arebeing recognized and rewarded during thejourney and not only at the end point. This isespecially important if we hope and expect otherjurisdictions to follow the leaders.
•

Explore and apply innovative andcomplementary investments to support
jurisdictional transitions. In addition to theinvestments required to reduce deforestationand implement sustainable production systems,
sustainable management of forests andnatural capital is fundamental to sustainabilityof a jurisdiction. Companies that have alreadymade commitments to forest conservation,community development or similar sustainability
goals through either corporate or philanthropic
channels should consider directing theseinvestments or philanthropic programs to support
priority JAs.
•

Participate. Multi-stakeholder platforms area key part of the JA, and these initiatives
need strong and consistent participation inand support for these dialogue platforms. For
example, downstream companies could clarify
market requests for sustainability if they meet
directly or through multi-stakeholder platforms
with their suppliers’ suppliers. Participationmust go beyond simply attending discussions
in capital cities; it means committing to thetransformative potential of a JA by rewarding
progress with purchases (below); better
understanding and taking responsibility forcompany supply chains and their local effects;
using influence and advocacy to bring together
various parts of government with stakeholders
to address issues at jurisdictional scale, andgetting involved with the upstream production of
products fundamental to a company’s portfolio.

•

Reward progress with strong commitments
and purchases. The salient goal of a JA is tobring market drivers to reward and promote
good governance. Where governments
have made strong commitments to reducing
deforestation and driving sustainability with clear,timebound plans and are adhering to thoseplans, directing purchases and other businessto these jurisdictions will create important andpositive incentives. On the flip side, companies
that are losing business because governmentsin their production areas are not seriously
addressing sustainability may be more inclined
to lobby for sustainability improvement (above).

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary

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Conclusion: The current balance of risk vs. reward for governments in a wider
range of commodity-producing jurisdictions does not tip in favor of “halting
deforestation.”
As noted below in results from the government
interviews, the challenges to governments in
reducing deforestation are significant, immediate
and can be politically costly. By contrast,
market benefits to governments that commit tosustainability can be uncertain and long-term. To
encourage faster progress in leading jurisdictions
and additional participation by those governmentsthat are not yet significantly engaged, we must
do more to rebalance the perceived cost-benefit
calculation for government officials. This can bedone by increasing incentives with both carrots andsticks for addressing deforestation and by lowering
the perceived “costs” and barriers to addressing
key challenges to sustainable development.

the widest possible constituency for reducing
deforestation and to increase potential
supporters and investors willing to backgovernment sustainability commitments.
•

Capture gains available through improved
implementation and enforcement of existinglaws, regulations and government programs.
In both Indonesia and Brazil, there are existing
legal requirements that, if fully implemented
and enforced, would translate into important
benefits for reducing deforestation andconserving forests in production landscapes.
Building on current policies, programs andregulations helps avoid the perception thatsustainability is somehow additional or beyond
what governments should already be doing andhelps build common ground with government
stakeholders. For example, the government ofNorth Sumatra province conducted the legally
mandated Strategic Environmental Assessmentwith support from CI and concluded that anadditional 1.28 million hectares of remaining
forest — 17% of the entire province — should bedesignated as protected forest to reduce therisk to development from floods and landslides.
Full legal compliance will not address allconcerns associated with market demands for
NDPE, but it is an important and meaningful
step that cannot be overlooked.

•

Build local government understanding oflaws and regulations and build capacity for
improved enforcement. Provincial and local
governments are essential to enforcement andimplementation of any sustainability agenda.
Investors, donors and governments needto invest in capacity building, strengthening
institutions and technical training. Producing
countries that are investing in internationalsustainability communications efforts should
also invest in “domestic roadshows” orsimilar initiatives to drive greater capacity andalignment among government officials.

Recommendations:• Clarify the “local value proposition” fromreducing deforestation. NGOs, companies
and other practitioners should place greater
emphasis on investing in and demonstrating
the significant benefits to local economies
and populations that can be derived fromconservation and sustainable commodity
production. For example, floods and landslides
are common in many parts of Indonesia andcan be greatly exacerbated by deforestation.
Similarly, drought and shifts in rainfall patterns
that can be affected by large-scale clearing of
natural vegetation are major concerns of soy
farmers.
•

Bring additional demand signals for reduced
deforestation and sustainable commodity
production to government by recruiting
additional companies and additional
sectors into JA initiatives. Sustainability atthe broader jurisdiction scale is relevant toall economic sectors (e.g. broader agriculture
such as cocoa, coffee or staple crops; timber;mining, energy, tourism and hospitality) andcompanies operating in or sourcing from thosejurisdictions. NGOs and companies should
recruit stakeholders from relevant sectors
beyond palm and soy to show to governments

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary

4Conclusion: To harness the potential of the JA to reduce deforestation at scale,
we need to make sustainability more relevant and meaningful to all producing
jurisdictions, not just the sustainability pioneers.
Leading jurisdictions are pursuing a competitiveedge in preferred markets based on sustainability
performance. If the number of markets demanding
more sustainable production does not grow, thepotential for the JA to scale as it is currently framedis unclear. In theory, the Malaysian state of Sabah
could satisfy the entire demand of the U.S. andEU markets, yet sustainable palm oil production in
Sabah alone will not solve the broader challengeof transforming the palm oil sector to sustainability.
Downstream U.S. and European companies looking
for quick fixes to deforestation in their supply chainsneed to remember that they too need solutions toscale. “Cleaning up” individual supply chains byshifting to “safe” or low-risk production areas will not
solve the widespread challenges of deforestation,
which are central to the global challenge of climatechange, nor will it solve the broader reputational
challenges facing the soy and palm oil sectors.
Recommendations:• Expand the markets asking for sustainablecommodities. Efforts are underway to build
demand in key markets outside of the U.S. andEU in the Asian markets that are significant
consumers of palm oil and soy. In the long term,
these efforts are essential, and practitioners
should explore creative options in markets
where high-level NDPE commitments might not
be soon forthcoming, but where, for example,

demands for evidence of legality may be more
immediately feasible. Indonesia, for example,
is both the largest producer and the largest
consumer of palm oil globally, and legal
compliance should be a minimum requirement.
•

Recruit peers, partners and industry
associations in markets outside of the
U.S. and EU. Downstream companies canplay a critical role in building the demand
for sustainable soy and palm oil outside theU.S. and EU. By sharing the lessons gained
through experience, European and Americancompanies, industry associations and related
initiatives can help companies in other markets
to better understand the issues, as well as
the actions they can take toward sustainableproduction and sourcing of palm oil or soy.

•

Leverage existing supply chain commitments.
Downstream companies using palm oil andsoy products can expand the impact of theirsustainability commitments by requiring
suppliers to apply sustainability commitments
across their entire supply base and not simply
what is shipped to them. This requirement
is only clearly specified in a handful ofdownstream supply specifications and should
be widespread.

Conclusion: The JA represents an important and promising systemic approach toaddress the complex challenges behind agriculture-driven deforestation and social
conflict. It is not a quick fix.
The challenges behind deforestation are complex
and multifaceted. Absent significant investment injurisdictions to build their capacity and significantly
accelerate and scale efforts from local projects tojurisdiction-wide initiatives, even the leading JAs areunlikely to have eliminated deforestation by 2020.
That does not mean these efforts are not valuable
and worthy of support and investment.

Recommendations:• Continue to send clear demand signals forsustainability. Companies in the value chain
should continue to work on supply chain
improvements in transparency, visibility andcertification/verification of supplier performance.
In the short term, JAs are unlikely to replace
the need for ongoing supply chain assurance

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary5efforts. These efforts help build the visibility andrelationships needed to address fundamental
challenges, they can generate importantlessons, and they represent an important
market signal for sustainability. Directing these
supply chain efforts to jurisdictions pursuing
the JA may also help contribute to those larger
initiatives.
•

invest cash and in-kind resources in JAs in
their priority production or sourcing regions.
Downstream companies may view investments
in JAs as added cost or may view them as
beyond their direct responsibility based onwhere they sit in the value chain. Yet, the supply
chain is currently absorbing costs in the formof chain traceability, verification, certification
and related programs. These investments are
moving toward assurance of commitments
made, but alone are insufficient to achieve thegoals of NDPE commodity production. We candebate on where the line is between public andprivate sector interest and where costs should
be borne up and down the supply chain, but
this debate will not solve fundamental problems
without leading companies driving innovations
needed to unlock solutions.

Innovate. Business as usual will not solve thecomplex and systemic challenges associatedwith deforestation, conflict and exploitation in
supply chains. Companies should move beyond
a compliance mindset and invest in supporting
JAs and driving innovation aimed at solving thefundamental challenges behind these issues.
Investments are required across the supply
chain. Upstream producers and traders should
participate in, encourage development of, andConclusion: A “stepwise path” with incentives provided proactively and along theway will be essential if we are to transform entire jurisdictions.
Some form of progressive or continuous
improvement approach will be required given
the breadth and scope of the challenge and theenormous variability in capacity and capability
across producers in a jurisdiction. For example,
it is unrealistic to think that all producers could
achieve one fixed standard at one time, so
jurisdictional implementation plans will need toaccount for this variability and provide appropriate
flexibility and incentives, both carrots and sticks,
to drive continued improvement and adherence tojurisdictional sustainability plans.
Recommendations:• Build flexibility and accountability into
government-owned and -driven jurisdictionalsustainability road maps. Development
and implementation of these road maps
is a critical part of the JA process. In manycases, the beginning of the process may
uncover additional and unknown problems
or conflicts. Governments and JA participants
should be supported and encouraged to build
the appropriate institutions, processes andmechanisms for adaptive management to deal
with these issues and challenges as they arise.
•

Recognize that legality is important, and insome jurisdictions, it can represent significant
advances toward longer-term goals of
eliminating deforestation, development onpeat, or exploitation. As noted elsewhere,
legal compliance can be a critically importantfirst step in a JA even though it is not thelast. Where needed, we should capture
the advances to be gained through legal
compliance and move forward.

•

NGOs must not let the perfect be theenemy of the good. By emphasizing the roleof government, the JA has the potential toaddress a significant gap in previous supply
chain dominated efforts to reduce deforestationand social conflict associated with commodity
production. The JA is not a panacea, and these
efforts will still represent a long journey. Where
governments are making legitimate efforts
and progress, it should be acknowledged

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary

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even if the final goals are not yet achieved.
Let’s not destroy the laboratory before theexperiment is completed. We need innovation,
experimentation, good monitoring, adaptive
management and documentation of lessons
learned along the way. There will be failures —let’s learn from them.
•Companies, especially downstream, must
not claim premature victory or overinflate
successes. As noted, the JA represents ajourney, not an immediate fix or one-stop-shop
solution. Companies should participate inand support JAs, but such participation does
not replace the need for companies to work
actively and constructively with their suppliers
to drive their own corporate sustainability actionplans. Supply chain initiatives and JAs should
not be seen as replacements for one another,but complementary approaches necessary toachieve the end goal of a commodity supply
chain of which any company, government or
stakeholder can be proud. Claiming premature
victory will only serve to spark criticism that
does not serve to advance real solutions.
•

Leverage projects and “stepwise” orcontinuous improvement approaches to drive
scale. Companies, NGOs, governments anddonors should build pathways to better alignand scale landscape or supply chain projects
into broader JAs. For example, clearly framing
landscape level projects around key legal
requirements or government programs as aninterim milestone in leading JAs may provide
powerful models and pathways for other nearby
jurisdictions to follow, while allowing thoseleading JAs continue to pursue sustainability
roadmaps that address key issues beyond
legality.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary7

INTERVIEWS:PRIVATE SECTOR + MARKET PERSPECTIVES
We conducted interviews with representatives from 14 companies at all levelsof the palm oil and soy value chains from producers and traders to consumer
goods companies and retailers. These discussions revealed optimism andsupport for the JA as well concerns and doubts. These can be summarized as:•

Broad familiarity with the overall concept of
the JA and recognition that, by placing greater
emphasis on the role of government andbottom-up multi-stakeholder processes, the JA
brings a more holistic approach with potential
to better address the systemic challenges thatdrive deforestation.

•

Uncertainty on the role of private sector actors,
especially downstream. Most companies
recognized the importance to support JA
initiatives and provide positive incentives inthe supply chain. However, mechanisms to
do so remain unclear and elusive, with somecompanies willing to invest directly throughbusiness or philanthropic means, and others
willing to offer longer-term or flexible contracts,or positive profile and exposure to leading
suppliers. Several companies challenged thevalue of premium pricing in driving lasting
positive change in the value chain.

••

Concern regarding the diversity of emerging
initiatives, high variability in approaches anduncertainty in the assurances that the JA will beable to provide regarding compliance with nodeforestation and sustainability commitments.
Some initiatives are focused on single
commodities such as palm oil and targetinga specific certification standard such as theRoundtable on Sustainable Palm Oil (RSPO),
while others are targeting multiple commodities
and focused around broader ambitions of
reducing deforestation.

•

Timelines for some of the major JA initiatives
are not aligned with corporate 2020
commitments.

Hope that the JA can provide greater scale,
improve options for incorporating smallholder
producers into sustainability programs, andeventually reduce or eliminate the need forcostly traceability programs and supplier-bysupplier certification or verification.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary8

INTERVIEWS:GOVERNMENT + NGO PERSPECTIVE
At the other end of the value chain, we interviewed government officials at
local, provincial/state and national levels as well as civil society actors involvedin leading JA initiatives in Indonesia (North Sumatra, South Sumatra, Central
Kalimantan), Malaysia (Sabah) and Brazil (Mato Grosso, Bahia, Tocantins, Para).
These discussions revealed:•

There is a wide spectrum of understandingof the JA concept. Some government leaders
clearly see the JA as a means to improve
competitiveness of their jurisdictions anddifferentiate themselves in international
markets. Many others, even some withinjurisdictions that are pursuing the JA, havenever heard of the approach.

•All officials noted the significant challenges
they face in addressing deforestation in
their jurisdictions based on divisions andsiloes within government — both between
local, provincial/state and national, as well as
between different ministries and departments
within government. Political challenges
associated with ending deforestation are
significant. In some instances, officials viewed
the JA with its emphasis on multi-stakeholder
processes as a potential mechanism to help
coordinate and unify government efforts.
Similarly, officials viewed the JA as a usefulframework to drive alignment and compliancewith existing policies, programs and laws.

•

In the Indonesian context, officials emphasized
the importance of alignment of district,provincial and national-level government
commitment and leadership as essential tomaking meaningful progress at local (i.e. district)levels.

•Representatives from all jurisdictions noted
the significant capacity challenges that inhibit
progress of JA initiatives and undermine efforts
to reduce deforestation. Similarly, officials notedthat resources available to them to advance the
JA or address broader issues of deforestation
pale in comparison to the complex drivers andchallenges that must be addressed to reduce
deforestation, resolve land and property
conflicts, and promote sustainable commodity
production in their jurisdictions.

•

The intended scope and scale of the JA
concept presents a unique challenge for
initiatives aiming at compliance with a single
standard such as RSPO. The JA is intended
to encompass all producers in a jurisdiction,
yet those producers vary significantly in theirsustainability performance and ability to comply
with a single standard at a single point in time.

•

The process of initiating a JA is anticipated touncover additional and unknown problems
and conflicts as stakeholders are given a clear
platform to air grievances that may not havebeen widely known previously.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary

9ANALYSIS OF TRADE FLOWS
While a key aim of the JA is to increase government engagement andleadership in efforts to halt agricultural driven deforestation, it is stillfundamentally built around markets for key products such as palm oil. Our
research therefore included a component examining trade flows with the aim ofbetter understanding the potential for the JA to contribute to long-term sectoraltransformation. This analysis focused on palm oil due to the relatively higher
number of distinct JAs in development in palm oil producing jurisdictions. Key
findings from the trade flow analysis included:•

Indonesia is both the largest producer andconsumer of palm oil globally. Outside ofIndonesia, the largest importers of palm oilin 2017 were India (10.6 million metric tons)
followed by the EU (6.5mmt), China (4.8mmt),
Pakistan (3.1mmt), Bangladesh (1.6mmt) andthe U.S. (1.45mmt). The key point is that only
two of the top seven markets for palm oil arerequesting a sustainable product, and the
majority of the global market continues tooperate on a business-as-usual approach.

•U.S. and EU markets are approaching saturationof demand for sustainable palm oil as the total
volumes of certified oil reported by U.S. andEU global brands in RSPO annual reporting
exceeds 80% of their global commitments,
indicating future gains will be marginal.

•

Jurisdictions implementing leading JAs produce
significant volumes relative to demand from U.S.
and EU markets requesting sustainable palm oil.
For example, Sabah alone produced 9.34mmt
in 2017 compared with a combined total of
7.95mmt imported to the U.S. and EU in 2017.

•

Trade flows to major markets have shifted
in recent years due to trade and economic
policy in importing nations. For example, China

Authors: John Buchanan, Joanna Durbin,
Dave McLaughlin, Lesley McLaughlin,
Katie Thomason, Melissa Thomas

was the largest palm oil importer in 2010. Its
market share has dropped due to a shift toward
soybean oil resulting from changes in the
livestock sector that are driving an increase in
the use of soybean meal for animal feed andincreasing soybean oil substitution of palmoil. However, in late 2018, China decided toincrease their purchase of CPO from Indonesia
by an astonishing 500,000 tons. Equally,
Indonesia’s share of exports to India have
dropped from 87% in 2010 to 56% in 2016 asa result of competing government policies
aimed at capturing economic value from palm
oil processing and refining. Other markets,
including emerging markets and eastern
European markets, are increasing in CPO trade
flow importance. What these trade disruptions
indicate is a new fluidity in CPO exports flowsthat will become the new norm. In order to beeffective, JA of certified products will need tobe cognizant of this modern reality.
•

Latin America is gaining market share in the
EU market. In 2016, 28% of the crude palm oil
imports to the Netherlands came from Latin
America. Similarly, Latin American imports toGermany have grown from 15% in 2011 to 31% in2016.

Contributors: Simon Badcock, Piers Gillespie
Publisher: Conservation International

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains Summary

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