EXPLORING THE REALITY OF THE

JURISDICTIONALAPPROACH

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

March 2019

© CI/photo by Tory Read

Authors: John Buchanan, Joanna Durbin,
Dave McLaughlin, Lesley McLaughlin,
Katie Thomason, Melissa Thomas
Contributors: Simon Badcock, Piers Gillespie
Publisher: Conservation International

Acknowledgements:
We would like to thank Walmart Foundation, whose support made this research initiative possible. Many
government, industry, and NGO experts and practitioners have shared knowledge and contributed tothis body of research. Our particular thanks to INOBU, Instituto Centro de Vida (ICV), Land Empowerment
Animals People (LEAP), Sustainable Trade Initiative (IDH), The Nature Conservancy (TNC), the Sabah
Forestry Department, North Sumatra provincial government, North Sumatra district governments (Mandailing
Natal and South Tapanuli), South Sumatra provincial government, and the 14 private sector stakeholders
interviewed [7 consumer goods companies, 4 palm oil producers and processors, and 3 soy oil producers
and processors].

Abbreviations and Acronyms
CAR- Rural Environmental Registry
CGF- Consumer Goods Forum
COE- Centre of Excellence
CPO- Crude Palm Oil
EDF- Environmental Defense Fund
EII- Earth Innovation InstituteFPIC- Free Prior and Informed Consent
FSC- Forest Stewardship Council
GCF- Governor’s Climate and Forests Task Force
GHG- Greenhouse Gas
HCS- High Carbon Stock
HCV- High Conservation ValueICRAF- World Agroforestry Centre
ICV- Instituto Centro de Vida
IDH- The Sustainable Trade Initiative
INOBU- Institut Penelitian Inovasi Bumi
IPAM- Instituto de Pesquisa Ambiental da Amazonia
ISPO- Indonesian Sustainable Palm Oil
JA- Jurisdictional Approach
JCSC- Jurisdiction Certification Steering Committee
MSPO- Malaysian Sustainable Palm Oil
NAP- National Action Plan

NDPE- No Deforestation, No Peat and No
Exploitation
NYDF- New York Declaration on Forests
PCI- ‘Produce, Conserve, Include’
PMS- Programma Mato-Grossense de Municipios
Sustentaveis
PMV- Green Municipalities Programme
RBD- ‘Refined, Bleached, Deodorized’
RSPO- Roundtable on Sustainable Palm Oil
SEA- Strategic Environmental Assessment
SIAP- Sustainable Investment Action Plan
SLP-Sustainable Landscape Partnership
TFA- Tropical Forest Alliance
TNC- The Nature Conservancy
TPS- Territorial Performance System
UNICEF- United Nations International Children’s
Emergency Fund
WWF- World Wildlife FoundationZAE Cana- Sugarcane Agroecological Zoning
ZSL- Zoological Society of London

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains2

Table of Contents
1. Introduction

4

2. Overview of Jurisdictional Approaches

6

3. Insights from interviews with private sector and governments

9

4. Learning from Jurisdictional Approach Initiatives

15

5. Commercial Viability analysis of the global palm oil market inrelation to Jurisdictional Approaches

23

6. Conclusion

27

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains31. INTRODUCTION
Deforestation is one of the most pressing global environmental challenges.
Agricultural expansion is the leading driver, accounting for 70-80 percent ofannual losses1,2, with four traded commodities—palm oil, soy, beef and pulp/
paper—responsible for over 50 percent.³ Major companies in the food andagricultural supply chain have responded, making voluntary commitments toend deforestation associated with agricultural commodity expansion.
To date, at least 365 companies globally have madezero-deforestation or No Deforestation, No Peatand No Exploitation (NDPE) palm oil supply chaincommitments.⁴ The most notable commitments
are the New York Declaration on Forests (NYDF),
the Consumer Goods Forum (CGF) member
commitment to zero-net deforestation commodity
sourcing, and NDPE palm oil commitments.
While these commitments indicate progress, theresulting efforts have emphasized certification
approaches to reduce deforestation in a company’s
supply chain. However, these struggle toaddress the systemic issues of agriculture-driven
deforestation for several reasons.
First, the global demand for certified sustainable
goods is still limited and prevents market-led
progress. In fact, the voluntary commitments arelargely from Western companies, who in the caseof palm oil and soy only represent 13% and 21% of
global consumption respectively.5
Second, the effectiveness of the voluntary
certification approach is compromised by concerns
about the level of assurance provided, and the costs
involved to enhance this. Lack of confidence thatthey are receiving the certified product purchased
creates risk and confusion for commodity buyers
and consumers. For some commodities, such as
palm oil and soy, the lack of confidence is linked
to the nature of supply chains in which products
are generally blended from several sources. This
creates challenges for traceability and transparency,

bringing a risk that products from unsustainable
practices are included in the mix. These commodity
flows are incredibly complex and are designed for
efficiency, not traceability to origin. There are also
concerns about the reliability and quality of the audit
processes, for example linked to the capacity ofauditors. Resolving these issues would be costly,
added to the costs already involved in certification
which relies on audits of every farm and every
supplier.
Finally, the certification approach does notrecognize and promote the critical role thatgovernment must play in regulating the use ofnatural resources in a country or subnationallandscape through policy, enforcement andengagement with stakeholders. These enabling
conditions can help to facilitate and reduce costsof certification, but the certification approach fails
to create incentives for government action in a
supporting or regulating role.
Jurisdictional approaches (JAs) arose from therecognition of these shortcomings. They aim tobridge market- and policy-based interventions for
greater impact on the ground. The JA encourages
governments and companies to work together
alongside key landscape actors towards landscapesustainability, improving local livelihoods andmaintaining forests and other natural ecosystems
through coordinated strategies across sectors,
including deforestation-free commodity production.
This approach holds great potential to address theshortcomings of certification approaches and build

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains4more comprehensive and long-lasting solutions.
There is a breadth of literature documenting thevarious benefits and challenges of jurisdictional
approaches (see Annex B). However, the approachis still in early stages of development and is built on
assumptions, some untested, about the needs ofcommodity buyers and the market information andincentives that could encourage governments andproducers to work together to adopt policies andpractices to halt deforestation. These assumptions,as well as questions about how best to implement
the strategy, if not validated and answered, could
undermine this important new approach to slowing
commodity-driven deforestation.
In this report, we explore some of the assumptionsof the JA, with a focus on the palm oil sector inIndonesia and Malaysia and the soy sector in Brazil.
• In section 2, we provide an overview of theemerging approach and navigate some of theterminology commonly used.

JAs, interest and requirements to engage, andthoughts around the role they could play tosupport JAs.
• In section 4, we examine a subset of the moredeveloped JA initiatives in these sectors andgeographies to explore how these initiatives
are responding to corporate sustainability
interests—and whether they are on track to help
companies meet specific commitments like the
New York Declaration on Forests.
• In section 5, we analyze the commercial
viability and potential impact of JA initiatives toinfluence market-driven progress in the palm oil
sector.
• Section 6 provides conclusions from this study
on the potential of JAs to transform commodity
production towards greater sustainability.

• In section 3, within the palm oil and soy sectors
and geographies of focus, we share insightsfrom interviews with key private sector andgovernment actors around their perception ofJurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains52. OVERVIEW OF JURISDICTIONAL APPROACHESDefining the Jurisdictional Approach
In this report we define a JA as an integrated
landscape approach which aims to reconcile
competing social, economic and environmental
objectives through participation by a full range ofstakeholders across sectors, implemented withingovernment administrative boundaries, and witha form of government involvement. This definition
draws from two commonly referenced definitions—the Little Book of Sustainable Landscapes⁶
and Jurisdictional Sustainability: A primer forpractitioners⁷.

The Little Sustainable Landscapes Book:a jurisdictional approach and a landscapeapproach are often used synonymously.
However, the jurisdictional approach is a typeof landscape approach that uses government
administrative boundaries, primarily subnational, to define the scope of action andinvolvement of stakeholders rather than social(e.g. indigenous community) or environmental(e.g. ecosystems, watershed) boundaries.
Jurisdictional Sustainability: A primer forpractitioners: a jurisdictional approach is a
type of integrated landscape management,with an important distinguishing feature:
the landscape is defined by policy-relevantboundaries and the underlying strategy
is designed to achieve a high level ofgovernmental involvement.

While the exact form of each JA depends heavily on
the local implementation context and the capacity
and interest of the involved stakeholders, a JA
commonly includes:• a multi-stakeholder forum or coordination
structure(s) to secure wide input and support
from stakeholders with influence or affected bylandscape changes;• strategies and action plans or roadmaps that
identify agreed social, environmental andproduction goals for the jurisdiction and actions
needed to address them; and• monitoring and information systems to track
implementation of the plan and resulting
progress towards the goals.
The key ingredient of government engagement in
a JA may vary quite considerably. In some cases,
it may take a form of lighter engagement such as
establishment of broad regulations or policies fornatural resource management. In other cases, it may
involve greater engagement, for example taking
the lead in committing to sustainability targets oreven deeper involvement by adopting these plans
into law and enforcing and monitoring progressagainst regulations. Government involvement
refers to engagement from different national,
provincial and local levels as well as across sectors
through ministries and agencies or departments ofenvironment, planning, agriculture, forestry, mining
etc.8

Opportunities and challenges of JAs
JAs have the potential to respond to theshortcomings of supply chain and certification
approaches and can help to address the magnitude
and urgency of environmental and social issues
across sectors and at scale. First and foremost,they have the potential to break out of a corporatespecific and commodity-specific supply chain
focus that tends to have patchy impacts and todrive change at a jurisdictional scale towards
sustainability. Developing goals from the groundup through a multi-stakeholder forum provides anopportunity to improve inclusivity and democratize
land use planning and management. This can allow
for engagement of smallholders who often do notparticipate in certification due to cost and capacity
constraints. JAs can promote action on some of thechallenges to smallholder adoption of sustainable
practices, like insecure land tenure for example
by facilitating land titling.9 Improved land use
planning can support the links between land use
objectives, for example recognizing the benefitsof forest conservation for ecosystem services likewater regulation that support improved commodity

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains6

production. Land use planning and jurisdictional
monitoring help to address the problem of leakage
within the jurisdiction, where reduced deforestation
due to improved practices or better enforcement in
one part of the landscape could lead to increases indeforestation in other places. Engagement acrosssectors can better align resources and investments
for greater impact and coordination, potentiallyreducing costs in the long-term like certification
expenses. Finally, improved governance can
extend beyond political turnover to reduce risk andprovide assurances that enable market interest andinvestment.

What is a landscape approach?
A landscape approach is a conceptual
framework whereby stakeholders in alandscape aim to reconcile competing social,economic and environmental objectives.
It seeks to move away from the oftenunsustainable sectoral approach to land
management. A landscape approach aims
to ensure the realization of local level needs
and action (i.e. the interests of different
stakeholders within the landscape), while also
considering goals and outcomes important
to stakeholders outside the landscape, suchas national governments or the international
community.⁸
How is a jurisdictional approach different
from a landscape approach?
A JA is a type of landscape approach with thespecific addition of government engagement
and administrative boundaries for
implementation—thus a landscape approachis not always a JA.

‘Jurisdictional sourcing’ creates incentives forfurther JA efforts and improvements in sustainability.
JAs can provide benefits to companies byfacilitating commodity sourcing with transparent,
consistent and resilient supplies that meet
improved environmental and social criteria, andminimizing risk because of increased government

accountability in management of natural resources.
Governments in jurisdictions showing higher
sustainability are incentivized by increased market
demand which serves to boost the economy in an
inclusive and sustainable manner. Communities
and smallholder farmers benefit from improved
participation, recognition and support for their rolein agricultural systems.
Despite the many potential benefits, JAs are notwithout their challenges. Implementation can becomplex and costly, and it can take time to deliver
results. The multi-stakeholder approach requires
ample negotiation, compromise and tradeoffs inestablishing and working towards multiple goals
that may not be mutually reinforcing. To add to thecomplexity, these goals can also be impacted or
influenced by external factors beyond the controlof the jurisdictional actors. The important ingredientof government engagement can be challenging
due to political turnover, poor alignment acrossdivisions, capacity and resource constraints,
transparency and limited access to information. In
addition, the boundaries for implementation can bephysically misaligned with the ecosystem landscapeboundaries that would have greatest environmental
impact.
JAs need significant funding and support. It can be
hard to engage companies in supporting a particularjurisdiction, particularly for those that source frommany places and do not have strong links withspecific supply regions due to the nature of thecommodities and their position in the supply chain.
In general, the benefits will largely flow to producers
making it unclear whether governments will get
sufficient resources and incentives to engage.
Also, at this stage, there are few success stories topoint to as examples for garnering more support
and assuaging concerns of potential partners andinvestors.
There are also risks associated with the model.
Even when JAs are successful, there is a risk thatlarger scale sustainability will not be not achieved,for example as a result of companies shifting
sourcing away from underperforming jurisdictions
and only incentivizing higher performing
jurisdictions.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains7

Learning from early experiences of JAs
In the past few years, there has been growing
momentum around the concept of JAs. Much ofthis is driven by an awareness that certification,by itself, is not sufficient to stop agriculture-driven
deforestation and the recognition that governments
must also be involved. There is also a greater
sense of urgency given the looming 2020 deadline
for many corporate sustainability commitments.
However, the JA is not a new concept. There arevarious examples where the concept has alreadybeen implemented for some time. To provide justone example, ZAE Cana (Sugarcane Agroecological
Zoning) was a collaboration between thegovernment and sugar cane producing companies
implemented in Brazil in 2009. This initiative
involved a technical review to identify those areas,or zones, that were appropriate for sugarcane
production, with consideration of social andenvironmental implications, as well as production
suitability. Prioritization was given to degradedlands appropriate for sugarcane production. Oncesugarcane areas were identified, the zoning was
adopted by law and enforced through regulations.
This prohibited production in regions such as the
Amazon and Pantanal, as well as the clearing of
native vegetation. In addition, the law prohibited
the national banking system from financing any
sugarcane related projects outside of the identified
zones. Because agricultural loans are generally
more affordable through the national banking
system, this law disincentivized planting sugarcane
outside of ZAEs.
This report aims to build on these early experiences
providing insights on motivations and incentives tosupport JAs among companies and governments
and providing information about some of theemerging examples.

Zero Deforestation versus Zero Net Deforestation, and Legal versus Illegal Deforestation
Zero Deforestation: no forest areas are cleared or converted.
Zero Net Deforestation: allows for the clearance or conversion of forests in an area as long as an equalarea is replanted elsewhere.
However, there is disagreement over how to define and measure the equal area of a forest because of
the carbon, biodiversity, ecosystem and social characteristics, value and impacts.
Theoretically, the total forest area remains the same with zero net deforestation, but the quality of forest
area may vary greatly.
Legal Deforestation: Forest clearance that is permitted by law.
Illegal Deforestation: Forest clearance that is prohibited by law.
Both legal and illegal deforestation are dependent upon place, given the national and local laws of agiven geography.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains83. INSIGHTS FROM INTERVIEWS WITH PRIVATESECTOR AND GOVERNMENTS
Interviews were conducted from April to October
2017 with private sector companies involvedin commodity production and sourcing, withgovernments involved in developing JAs andwith civil society. A synthesis of findings from theinterviews is presented here, providing a range ofperspectives on the opportunities and challenges of
JAs from key stakeholders.

Private Sector Feedback
Key private sector actors along the Indonesian palm
oil and Brazilian soy supply chain were interviewed
to capture their thoughts regarding the JAs. Of the
14 companies interviewed, 7 are closer to the supply
side involved in production, processing and trading
and 7 are further downstream consumer goods
and retail companies. Among these companies,
10 are signatories of the New York Declaration on
Forests, support the Consumer Goods Forum onpledge deforestation, have RSPO certifications or
are committed to 100 percent sourcing of RSPO
certified palm oil and have NDPE commitments.
Almost half of the companies are highly involved inor exploring engagement with JA initiatives on the
ground, while others have been closely monitoring
the approach.
Companies were asked about their:• approach to sustainable commodity sourcing• most important sustainability criteria• knowledge about and interest in JAs• information or assurances needed to engage ina JA• ways they are or might engage in JAs.

The Role of Private Sector in
Supporting JAs
The interviews revealed that there is broadfamiliarity with and interest in the overall conceptof JAs from a wide lens, yet some confusion
around how they are implemented and the role ofthe private sector. There is clear recognition fromprivate sector respondents that poor governance,such as inadequate regulations, corruption andlack of enforcement, is one of the biggest gaps
in driving meaningful change to address manyof environmental, social and legal issues that arehaving significant impacts on the industry. While
generally recognizing that JAs could be helpful toaddress governance challenges, respondents wereclear that their involvement in JAs needs to directly
and clearly advance their sustainability objectives.
JAs would need to help in meeting their zerodeforestation commitments, including protectionof peat areas and national parks, establishmentof biological corridors, as well as addressing
critical social issues like smallholder inclusion andland titling—which in many instances would gosignificantly beyond legal compliance with any
national regulation.
Companies most commonly cited offtake
commitments as a role they could play to support
JAs. Several companies noted that they would
be unlikely to offer any premium pricing as it is
not perceived as effective in getting rewards
down to the producer and would be hard tojustify from a business perspective when similar
quality products are available at lower price.
Numerous companies interviewed have stopped
using premiums, instead using these funds fortechnical assistance for smallholders. Rather, theywould prefer alternative ways to support JAs. For
example, several companies mentioned the ability
to offer support for suppliers with flexible or longerterm contracts, perhaps showcasing suppliers intheir marketing as an extra perk. The majority ofcompanies recognized the need for investment in
JAs. However, they also struggled to understand if
this would be in the form of philanthropic support
or a business investment that would require areturn. Finally, support in the form of positive public
communications, new technology development (e.g.
to enhance traceability and transparency of supply
chains), technical assistance, and disincentives(e.g. threats to drop suppliers in certain regions)were also all options mentioned by companies
interviewed.

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

9Many of those interviewed see direct benefits from
JAs, for example potentially reducing some of thecomplexity they face in managing today’s supply
chains and meeting traceability requirements. Somesee the potential for greater flexibility in making
sourcing or procurement decisions based on agreater geographic scale versus specific suppliers.
By establishing a supply sourcing area of known
legality, there would be multiple sourcing options
available in that supply area.

company can play, recognizing that different typesof companies may want to engage in different ways
and at different levels due to their position in the
supply chain and the nature of the commodities.
Along a spectrum from less to more support for aJA, companies can engage in:

There were also differences expressed based onwhere companies interviewed fit within the supply
chain. At the retail end, assurance that suppliers
are adhering to a certain level of sustainable
practices is essential. Certification and traceability
help provide this assurance and retailers expressed
concerns about whether JAs could provide thisassurance across the board. While still concerned
about assurance of sustainable production practices
to meet the demands of downstream buyers, theproducer/traders hope that good governance andstrong jurisdictional sustainability performance
would make these sustainable production
requirements easier to demonstrate as supply areas
with improved governance are established. They
recognize the importance of agreed criteria andthe consistent application of these criteria before
a blanket JA assessment could provide necessary
assurances. Across all company types, concerns
were raised around consistency between theassurances provided by jurisdictional approaches
and alignment with existing commitments andcorporate requirements such as traceability andcertification.

• Inform the development of tools that assist in
the implementation of a JA — like Global Forest
Watch Pro Commodities, etc.

In summary, feedback from our interviews supports
the understanding that companies can play avariety of roles to support JA development andimplementation, with varying levels of effort andbandwidth as well as investment. In the graphic
below, we plot several of the potential roles a• Financial investment in JA activities, providing
grants, credit or insurance to support design
and implementation of JA plans and activities.

• Strong positive communications and messaging
around the importance of the JA to address
systemic issues in agricultural production
sectors• Participate as a company representative in a
multi-stakeholder forum to share corporate
goals and incentives that could be offered• Provide technical assistance or extension
services towards the pilot initiative• Commit to offtake products or a percentage of
products• Establish and implement a preferential sourcing
policy aimed at rewarding high performing
jurisdictions or supporting an underperforming
transition subject to meeting performancemilestones on an agreed upon timeline.
• Provide premiums or longer-term contracts
in jurisdictions with higher sustainability
performance• Funding for technical activities, such as
mapping smallholder farms or monitoring

POTENTIAL ROLES FOR PRIVATE SECTOR
Participatorin multistakeholder
forumsSupportive
publiccommunications

Support tool
development

Sourcing
incentives,premiums,
longerterm
contracts,
etc.

Committed
offtakerTechnical
assistance/
extension
services

Preferential
sourcing

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

Financialinvestment
in pilot
initiative

Fund
technical
activities

10ScaleIt is widely accepted by companies interviewed thatJAs have potential to address sustainability issues
at scale, striving for bigger sustainability impacts
and dealing with broader systemic issues. JAs canalso be cost effective as resources and investments
can be pooled. Companies in both palm oil and soy
sectors agreed that it is important to move awayfrom the current piecemeal approach to a processthat deals with a broader geography.
Concerns were expressed that given the scale,progress on establishing effective JAs could be
hampered by the number of different stakeholders
and the different levels of decision makers,
including those at the national level, the provincial
or state level, and at the municipal, district ormore local level, and different expectations foreach group at each level. There are likely to bechallenges in coordination and in negotiating
agreement across diverse stakeholder groups,
recognizing the need for tradeoffs and differencesin power and influence.
Interviews also noted the potential downside to
the scale of JA. If a producer within a particularjurisdiction was non-compliant, this could create arisk for all the other producers in that jurisdiction. In
other words, reputational risk could be shifted from
specific companies to specific jurisdictions. On theother hand, it was also pointed out that jurisdictions
could compete against each other in a “race tothe top” in order to facilitate access to markets
by establishing a reputation of good governanceand results in meeting sustainability outcomes
like reduced deforestation. Creating incentives for
improved performance at jurisdictional scale has
potential for much greater impact then incentives forindividual producers.
Despite these concerns, broad support was voiced
for moving forward with the Jurisdictional Approachconcept because it can address sustainability issues
at greater scale. The need for active government
involvement is clearly recognized as key, and theopportunity to begin to solve some of the systemic
issues such as smallholder inclusion and legality iswelcomed. There was general consensus that thesector has to move away from working with specificsupply chain focus and certification to a muchbroader format to make meaningful change.

Consistency and Assurance

The issue of consistency between JA initiatives
is a critical one raised by companies. Given thateach jurisdiction will have different actors andstakeholders with different objectives, and thateach landscape may be very different, how canjurisdictional sustainability be compared? Alignment
around goals and measures of success is importantto provide consistency and will be critical for longer
term credibility and viability of JAs as the basis forjurisdictional sourcing.
There is a lot of variability between jurisdictions,
not just in geographic terms, but also in politicalterms. The expectations of local government actors
vary at a district, provincial or national level. These
expectations may or may not be aligned with market
expectations. While some JAs are setting theirgoals around compliance with local and nationallaws, others are going beyond legal complianceand framing their efforts around meeting therequirements of sustainability standards such as
the RSPO. More ambitious goals may add further
complexities, as some issues may go beyond theboundaries of a specific jurisdiction and require anational focus.
The variability among current pilot JAs was
highlighted. One pilot is working on smallholder
issues, broader forest and landscape issues, andland use planning; and another is focusing on thelegal framework for land ownership, and legal titlingunder agrarian reform laws, and not broader land
use planning and deforestation.
The issue of assurance was clearly voiced from theretail sector, where currently certification provides
assurance and transparency through a formal
verification process against a defined minimum
standard. There is uncertainty as to how a JA could
provide similar assurance given the breadth of
producers involved. On the other hand, producers
and traders hope that requirements on traceability
to production facilities would become obsolete andwould be replaced by traceability to jurisdictions.
The retail sector relies on more traditional supply
chain and farm-level certification to report againstsustainable sourcing commitments and would preferthat JAs provide the type of assurance they getfrom certification.
The issue of consistency and assurance is clearlyan area that needs careful consideration andalignment. It is central to providing the market

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains11certainty that a credible process is in place toensure that production practices are sustainable
and support the many public commitments thatmany companies have made. While JAs are stillin their infancy, it is important that proponents of
JAs consider both consistency and assurance interms of comparability across jurisdictions and interms of comparability with farm-level certification
and related company commitments. These issues
will be key in terms of long-term credibility andeffectiveness.

Incentives
Incentives have been widely discussed for years,
especially with regards to certification. Is themarket willing to provide incentives for producers/
jurisdictions to transition to a more sustainable
path? In general, the interviews reflected that themarket incentives for JAs would need to be derived
from preferential market access, such as long-term
contracts, for those regions that are participating
rather than premium prices. It was also widely
recognized that other JA incentives could include
investment in upstream operations that werestrategic for that supply chain actor and that would
directly touch their supply chain.
Both the producers and traders and the consumer
goods and retailers expressed interest in investingor co-investing in a particular jurisdiction. They
noted that a JA would create the confidence
to invest in a particular region because of the
improved governance, which would help to create
jobs, improve standard of living and improve
productivity. The costs currently incurred due to thelack of governance also need to be considered,such as the cost of fires, the impact on public health,and access to markets.
Overall, companies interviewed are supportive ofJAs, and willing to show support through offtakeof production, to provide preference from a
procurement standpoint, to co-invest in strategic
projects that touch their supply chains, and toprovide technical and financial support to JA pilots.
Whether these provide sufficient incentives forgovernments and producers to work together on
JAs remains an important assumption to test.

Conclusions about private sector and JAs
Overall the private sector representatives
interviewed view the JA as a concept, still in its
infancy, and while companies in commodity supply
chains are able to visualize the possibilities andsolutions that this approach may take, it is also clearthat expectations are not yet fully aligned. All agree
that the role of government is critical in helping tosolve many of the very real problems encounteredin the field as many of these problems were theresult of weak governance. The companies are
intrigued by the possibility of being able to effectchange on a broader scale, rather than working
on a piecemeal basis with discrete supply chains,which may help transform a supply chain, but not
drive sector transformation. All the companies
interviewed are willing to support these initiatives
through some type of sourcing support or potential
co-investment in strategic downstream activities.
In fact, more companies were willing to financially
support an initiative versus pay a premium for thecommodities, although most preferred that theinitiative has a direct supply chain link.
The current concerns that need to be better
understood are the issues of consistency andassurance.
• Will all JAs deliver the same outcomes andhave a robust assurance process?
• If they do, what are the implications for the
supply chain management practices that are
currently in place and how do these outcomesmeet the public commitments that many
companies have made?
• Would the markets be satisfied if compliancewith national laws was achieved?
• What is the common framework that ties thesevarious initiatives together?
• Is it legal compliance and good governance,or does it go beyond legal compliance andinclude sustainability standards such as the
RSPO?
Answers to these questions will emerge withgreater clarity over time as the current JA initiatives
advance, new initiatives are started, and lessons arelearned from both the successes and failures of theapproach.

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

12

GOVERNMENT FEEDBACK
Interviews were conducted with members ofnational, provincial and district level governmentsfrom the provinces of North Sumatra and South
Sumatra in Indonesia, Sabah in Malaysia, andthe Bahia and Tocantins states in Brazil. Officials
interviewed ranged from positions in pertinent
departments such as spatial planning, agriculture
and environment to heads of district governments.
From these interviews, various themes emergedthat show both opportunities as well as barriers for
implementation of JAs from their perspective.

Government leadership and coordination
One of the leading observations was anappreciation that government plays a critical leadingrole in JAs. However, coordination across agencies
and between levels of government from national tostate/provincial and local government is lacking andthere was recognition that JAs may help increasealignment and collaboration between departments
and institutions. For example, one province’s
government representatives emphasized theirinterest in the ability of a JA to improve governanceby better integrating the planning and coordination
among governmental departments and agencies.
This could include government engagement in
resolving conflicts due to fires and water access,as well as social conflicts and land tenure issues.
Another province noted the opportunity that a JA
would provide to better align the objectives andbenefits that the Ministry of Forestry and the palm
oil industry can bring each other—particularly how
forest conservation can benefit palm oil production
and how the palm oil industry could support
longer term uptake of forestry conservation efforts.
Similarly, as the forestry sector must also comply
with the highest principles of forest management
and conservation, interviewees from one jurisdiction
thought that the RSPO initiative on jurisdictional
palm oil sustainability could provide a model also
relevant to FSC and the forestry sector.
There was also acknowledgement that consistentand aligned leadership at the provincial and districtlevel is needed. Currently, local governments lookto the national level for guidance and solutions.

Government bodies’ lack of empowerment,
coordination and capacity were all topics thatemerged. All government representatives
voiced the need for added capacity building andinvestment.
Representatives from one province shared thatwhile the governor has not committed formally toa JA, they are already assessing environmental
and ecosystems services and carrying capacity tosupport spatial planning efforts which could support
a JA. This province had clear recognition of thecomplexities of implementing a JA, like the lack of
coordination, alignment and leadership, and spoke
to a strong dependence on central government toprovide solutions and a pathway forward.

Improved governance and sustainability
at scaleJAs, with their emphasis on multi-stakeholder
approaches, dialogue platforms and sustainability
across jurisdictions are seen as potentially helping
reinforce the importance of environmental laws
and regulations, broaden the focus from economic
development to include environmental and social
concerns and have a wider reach rather than“site specific” approaches. Finally, the idea ofmainstreaming sustainability and achieving scale
beyond the achievements of the current certification
model was attractive to government representatives
from the province.
In Indonesia, where the ISPO is a legal requirement,
but lagging in implementation, it was recognizedthat the JA could be useful in helping thegovernment engage with the private sector tomeet established legal requirements. In Brazil, one
state’s governmental representatives who wereinterviewed cited a number of reasons they’reinterested in pursuing JAs. First and foremost, soy’s
importance to the state economy and the ideathat the government must be able to require legal
compliance if the production is to be sustainable.

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

13

Government perspectives on market
incentives for JAs

Challenges due to lack of political will andcomplexity

In the case of palm oil, JAs were generally perceived
as facilitating access to markets, but this viewpoint
was not universal, nor was it the predominant
motivation. There were various reasons cited as
to why a province would want to pursue a JA. For
example, in one province, interviewees indicatedthe potential of a successful JA to differentiate
their product and provide access to new markets
based on its assurance of effective governance andsustainability.

In Indonesia, the provincial commitment to JAs was
mixed. Lack of leadership was cited as an issue,
as well as the inability to coordinate between
government institutions and the reliance on central
government for solutions. There was also concern
expressed about the private sector and its impact
on communities and the complexity of land tenure
issues and social conflicts. Furthermore, there wasapprehension around the political cost associatedwith championing environmental efforts because
the conservation benefits for agricultural production
are not always widely understood or clearlycommunicated to broader audiences.

Concerns that JAs may not benefit
smallholders and local communities
The benefits of large-scale agricultural operations
were openly questioned by government officials
in both palm oil and soy regions, and there wasconcern that JAs will make these monocultures
more acceptable to markets. The viewpoint
expressed was that local communities have often
not benefited by the presence of these operations.
In the case of palm oil, there is a perception that the
local communities have little access to employment,road infrastructure is damaged and poor waste
management practices reduce water quality. In
the case of soy, while soy production is a large
economic driver, there are concerns that it provides
few local jobs and not many benefits flow to local
communities.

In the case of Brazil, while there were differencesin awareness and understanding of JAs between
Bahia and Tocantins, both were aware andmonitoring JA initiatives in other regions ofBrazil. While they are aware of the role of state
government for legal compliance within the soy
sector and its importance for sustainable production
which could be addressed through a JA as partof the state’s development plan, they thought
there would be substantial challenges to reconcile
the differences between the environmental andproduction communities. Capacity building would
be needed to bring these groups to agreement.

In the case of palm oil, social issues and smallholder
issues were highlighted as a priority by government
officials in all regions. Smallholders are asignificant part of the industry, and they cannot be
marginalized. But it is unclear how JAs might impact
smallholder production. The need for community
engagement and education regarding deforestation
was noted, as well as the need to resolve land
tenure issues, and conflicts regarding fires andaccess to water.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains144. LEARNING FROM JURISDICTIONAL APPROACH
INITIATIVES
There are a number of JA initiatives being
implemented globally with varying levels ofadvancement in implementation. We selected asubset of the more developed initiatives within ourareas of focus in the Indonesian and Malaysianpalm oil and Brazilian soy sectors. For palm oil wehighlighted the RSPO pilots in South Sumatra andCentral Kalimantan, Indonesia and Sabah, Malaysia,
as well as the Sustainable Landscapes Partnershipin North Sumatra, Indonesia. Within soy we focusedon the initiatives in Mato Grosso and Para, Brazil.
These initiatives were selected because they haveestablished government engagement and support,
articulated targets and have started the beginningsteps of multi-stakeholder collaboration andimplementation.

Between April and October 2017 we conductedinterviews with various implementing partners
developing these initiatives to understand more
about their experience, successes and challenges
in executing. Nearly every initiative indicatedchallenges in securing significant engagementfrom the private sector—primarily in articulating acompelling business case or incentive structure
to entice their participation or support andsubsequently establish a market demand link forthe production component. This finding applied
to initiatives with strong and explicit government
support, as well as those with less articulated
engagement.

Summaries and insights from the implementers for each initiative are found in the table below.

Palm Oil Initiatives
The Central Kalimantan Jurisdictional initiative originated from the Roadmap for Low-Deforestation Rural
Development—a conservation plan for the province focused on preserving forests and regulating palm oil
production.10 The initiative is designed to build on existing government instruments and authority to ensure they
are effective, sustainable and enforceable. Developed by the provincial and district governments alongside Earth
Innovation Institute (EII), Institut Penelitian Inovasi Bumi (INOBU), with input from palm oil companies and civil society,the plan established 2020 targets of reducing deforestation by 80 percent from 2006-2009 base levels, zerodeforestation from sustainable palm oil, and increasing palm oil produced by smallholders to represent 20 percent
of total palm oil production.11, 12
To achieve the goals of the roadmap, in 2015 the Provincial Government of Central Kalimantan, in partnership withINOBU, launched a JA pilot for RSPO certified sustainable palm oil in three districts. Most work is being conductedat the district level, as the authority for non-forest areas is with district governments in Indonesia. Activities are
led by district level working groups for jurisdictional certification of palm oil created through a Head of District
regulation, with members from the district government, companies and civil society organizations. Significant areasof work include reducing deforestation, protecting peatland and high conservation value areas as well as supporting
restoration through revising the spatial plan to protect and restore forests and other critical areas through thefollowing instruments: carrying capacity assessments, plans to protect and manage the environment and strategic
environmental assessments, district spatial plan. Key accomplishments to date include mapping smallholders inpilot districts, identifying and reaching consensus on “go and no-go areas” for palm oil development, and theestablishment of a monitoring system known as SIPKEBUN for measuring progress towards jurisdictional targets.13,14
The Ministry of Agriculture, in collaboration with INOBU, is employing SIPKEBUN across the initiative’s pilot districts
to monitor both plantation and smallholder data. This allows the government to identify environmental risks andthe need for enforcement, as well as identify opportunities to support smallholders and increase productivity. For
social targets the initiative is creating an agricultural facility to support smallholders to organize, access training
and information, register, as well as access agricultural inputs such as fertilizer and seedlings. The facility has been
established in Seruyan district and is currently providing training. It will later expand to providing other goods andservices. Additionally, there is piloting of protocol and mechanisms for preventing and mediating social conflict fromplantations. INOBU, with support from companies such as Unilever, has mapped nearly 5,000 smallholders15 in theprovince, increasing transparency as well as identifying ways to support smallholders in securing land rights andobtaining RSPO certification.16
Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains

15Palm Oil Initiatives
Insights from Implementers
JAs are designed to source solutions from the bottom up, developing long-term goals that can improve malfunctioning
production and governance systems. While developing solutions and a strategy in this way is more likely to create
lasting and effective change, it is a time intensive and laborious process. It must begin with investing the time toestablish trust among constituents that do not typically interact in meaningful ways, let alone collaborate. Each initiative
operates within and must respect the local context, requiring a new interpretation of the model. The RSPO pilot inCentral Kalimantan noted these challenges and the time required for the early, yet integral stages of establishing trust
within a new collaborative effort across stakeholders. This must be an iterative process where they can be allowed
time to transition.
The South Sumatra Jurisdictional initiative originated from a 2015 commitment from the Governor of South Sumatra
to establish a green growth plan– where economic growth and improved livelihoods are coupled with thriving
ecosystem services and sustainable production activities, including a focus on improving the productivity of key
commodities such as palm oil. 17, 18, 19 The plan, designed through a multi-stakeholder effort led by the Sustainable
Trade Initiative (IDH) and supported by the World Agroforestry Centre (ICRAF), was finalized in 2017. 20, 21, 22 IDH
leads convening and implementation, with a number of pilots such as Provincial Risk assessment of Mills and RSPO
independent smallholder certification with Indo Agri, followed by additional technical assistances from KELOLASENDANG project that is led by Zoological Society of London (ZSL) and other private sector partners supportingwith technical assistance to farmers.23, 24 South Sumatra’s commitment to become RSPO certified at provincial levelby 2025 through a produce and protect strategy aligns with their green growth plan and has begun at the districtlevel.25, 26 In the district of Musi Banyuasin, mapping of independent smallholders, high conservation value (HCV) andrestoration areas has been achieved with the development of Centre of Excellence (COE). Accelerating land legality
for the smallholders, sustainable finance for replanting, additional mechanisms for monitoring and management of
deforestation and social conflict are currently under development.27
Insights from Implementers
Articulating the incentives for private sector can prove challenging for jurisdictional initiatives. IDH, the Sustainable
Trade Initiative, an NGO implementing various jurisdictional initiatives including the RSPO JA pilot in South Sumatra,
noted their challenges in identifying the incentives for private sector when operating under a peat moratorium.
Compliance with the moratorium would put many companies out of business which creates political challenges for
enforcement. Similarly, convening companies to collaborate at the trader level to address certification questions
can prove difficult because of antitrust concerns. Developing solutions to operational questions requires a level ofcollective coordination across companies which can be challenging when companies are concerned about protecting
their proprietary business interests.
The Sabah Jurisdictional initiative originated from a 2015 goal to achieve 100 percent RSPO certified palm oil
production by 2025 from the state of Sabah, Malaysia, which is responsible for one tenth of the world’s palm oil.28, 29, 30,
31
A key achievement to date has been the Sabah Forestry Department and Natural Resources Office establishmentof a Jurisdiction Certification Steering Committee (JCSC), which serves as a multi-stakeholder forum for determining
a sustainable production roadmap for palm oil that is free of deforestation and social conflict, supports smallholder
livelihoods, and can be managed institutionally.32 Established in 2016, the committee is composed of 15 stakeholder
groups, including NGOs, such as WWF-Malaysia and UNICEF, and private sector partners, such as Wilmar International,
HSBC Bank and Sime Darby, among others, with Forever Sabah and RSPO serving as technical advisors.33, 34 (Acomplete list of JCSC members can be found at cited source). In addition to reducing deforestation with the productionof a long-range forest management plan, Sabah intends to restore as much as 500,000 hectares of forest. In the firstphase of the initiative, Sabah is working towards producing a map of HCV/HCS areas, translating FPIC into regulations,and organizing and supporting smallholders.36
Shared Insights from Implementers
Implementing a multi-stakeholder initiative to transform an entire agricultural production system at scale brings
significant challenges. Cynthia Ong, Board Chair and Chief Executive Facilitator of Forever Sabah —technical advisor
to the JCSC—shared that their initiative is “challenged by uneven readiness, constrained capacities, inconsistentinstitutional commitments, and systematic fragmentation, and by skepticism and hopelessness.” Her comments speak
to the multifaceted struggles of bringing the stakeholders from across sectors of landscape together to move complex
solutions forward. Each stakeholder has capacity, resource and organizational limits that can impact the ability toarrive at shared solutions. Her candid reflections show the immense task and struggles of being at the center of thecoordination across stakeholders.
Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains

16Palm Oil Initiatives
Sustainable Landscape Partnership (SLP) for Indonesia
Initiated in 2011 by Conservation International with support from USAID and the Walton Family Foundation, the SLP
is a collaboration with the Ministry of Forestry, local governments, private sector palm oil companies, producers
and communities to protect the natural capital of North Sumatra by promoting sustainable production practices,
good governance and facilitating sustainable finance to ensure long-term benefits to people.37, 38, 39, 40 SLP
collaborates with provincial and district governments to align field activities and interventions with existing policy
and regulatory frameworks for lasting impact. SLP focuses on four regions in North Sumatra to implement replicablebusiness models that foster green development, particularly through economic alternatives to deforestation. Key
accomplishments of the initiative have included developing strategic environmental assessments (SEA) to inform
North Sumatra’s 2017 green spatial plan for implementing low emission development that supports management offorests and peatland; supporting community livelihoods through training 5,500 local farmers with a 30% increasein yields and improved access to markets; creating Sustainable Investment Action Plans (SIAP) for three districts
as well as the province to support investment in sustainable commodities; and working with partners to implement
sustainable forest management plans.41, 42, 43, 44 The initiative is now working towards leveraging the framework of
the Sustainable Palm Oil National Action Plan (NAP), supported by the cross-sector Indonesia Palm Oil Platform(FoKSBI), to support local and national laws for sustainable development, reducing deforestation, implementing
ISPO, protecting peatland, and maximizing sustainable production outcomes of North Sumatra palm oil producers,
plantations, refineries and mills.
Shared Insights from Implementers
SLP differs from other JAs in that it is not tied to a provincial government driven goal for ending deforestation,rather it is working to enforce already established regulations which support forest and peatland protection,
as well as sustainable production, and work alongside government to strengthen land use plans and forest
governance. For example, developing the SEA with the government of North Sumatra resulted in identification ofover 1.2 million hectares of forested areas which should be conserved to reduce risks of floods and landslides.
Conservation International is leveraging North Sumatra’s existing spatial plan for low carbon development, the
NAP which is endorsed by national government, and additional long-standing national and provincial regulations
aimed at conservation gains that have not been implemented in a way that optimizes sustainable production andconservation outcomes. CI has played a central role in translating national and provincial level decrees into local
action and understanding within the local North Sumatra context. Building on the lessons and successes of the SLP,
the project team is now exploring a more collective, multi-stakeholder approach to enhance impact and scalability.

Soy Initiatives
The Mato Grosso Jurisdictional Initiative was created in 2015 when the government of Mato Grosso, Brazil, adopted
a JA for agricultural intensification and forest restoration to remove deforestation from cattle, soy and other commodity
supply chains through its Produce, Conserve, Include (PCI) strategy.45 The PCI strategy is a set of 21 defined targets
working towards a sustainable low carbon economy with environmental conservation and smallholder inclusion,
contributing to climate change mitigation and adaptation. Locally, the government of Mato Grosso formed a PCI
steering committee made up of 43 producer associations, government ministries and private sector representatives
to guide the governance and implementation of the strategy. Through the PCI strategy, the Mato Grosso initiative
is working to double livestock and grain productivity while also significantly increasing forest area and sustainable
management; reduce Amazon deforestation by 90 percent and Cerrado degradation by 95 percent; and increasesmallholder market access to 70 percent by 2030.47, 48 A number of programs and activities led by NGO partners
are contributing to the goals of the PCI, including ones supported by Earth Innovation Institute (EII), Environmental
Defense Fund (EDF) Instituto de Pesquisa Ambiental da Amazonia (IPAM), Instituto Centro de Vida (ICV), The Nature
Conservancy (TNC), IDH and the private sector, such as Cargill, Marfrig, Carrefour and Amaggi.49, 50, 51, 52 Programs
contributing to PCI goals include Programa Mato-Grossense de Municipios Sustentaveis (PMS), the Green Growth
Initiative, the Territorial Performance System (TPS), Responsible Soy Program, and the Novo Campo Program, Carrefour
Sustainable Farming Platform.53 Mato Grosso has made strides in reducing deforestation, achieving greater than 70
percent reduction in deforestation in 2016, compared to baseline levels the decade prior.54 EII has also developed acustomized monitoring platform for the PCI accessible at www.pcimonitor.oShared

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains17

Soy Initiatives
Shared Insights from Implementers
As a significant commodity exporting state of Brazil, Mato Grosso increasingly saw a rise in customer sustainability
commitments and requirements, like monitoring for deforestation and other sustainability criteria. The government
viewed this as an opportunity to lead as an early mover in meeting these requirements by transitioning to moresustainable production methods, attract a new international market of sustainable commodity buyers and toprovide risk mitigation assurance. The government’s championing of the approach and initiative have attracted
attention and support from a global audience and is helping with engaging larger private sector support. However,strong government engagement also brings risks that progress could slow when there is political turnover if newleadership is not as supportive.

The Pará Jurisdictional initiative was developed by the state government of Pará in Brazil in 2011 building on
the voluntary state legislation and plans towards a goal of reaching zero net deforestation and strengthening
sustainable production.55, 56 The initiative is a joint effort by state and local government agencies, civil society,and the private sector to control deforestation, implement environmental management, conduct comprehensive
land title organization, and increase sustainable agriculture—particularly beef and soy.57 NGO partners—including
Imazon, which provided deforestation monitoring and technical assistance, and The Nature Conservancy (TNC),
which assisted farmers with land registration and conducting territorial planning—have been very influential in
implementing the initiative previously in districts such as Paragominas.58, 59 The work in Paragominas, which began in
2004, effectively saw a 90 percent reduction in deforestation by 2010.60, 61
Shared Insights from Implementers
The success of this early pilot in Paragominas inspired the development of the statewide Green Municipalities
Programme (PMV). Sourcing commitments to eliminate illegal deforestation and meet environmental criteria by key
private sector actors, such as Carrefour and Marfrig, have catalyzed efforts on the ground.62, 63 By 2012, becauseof these implementation successes, as well as support by government agencies, the Pará state PMV was able toachieve its goal of increasing farmer and rancher participation in the Rural Environmental Registry (CAR) by 50
percent.64 By 2017, over 80 percent of the state municipalities had joined the program. The state also launched abroader economic plan in 2016, the Pará 2030, which couples economic development with sustainable production,
in sectors such as cattle, soy, palm and cacao.66, 67 If successful, the Para initiative promises to significantly increase
cattle and soy production while simultaneously protecting forests, reducing the state’s greenhouse gas emissions,and creating nearly 20,000 new agricultural jobs.68, 69

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains18Corporate commitments that can support JAs
Widely adopted corporate commitments on halting agriculture-driven deforestation are helping to drive thismovement towards improved agricultural production. Studies suggest over 60 percent of global palm oil
trade is covered by no deforestation commitments. The table below shows a sample of the most prominent
initiatives driving voluntary corporate commitments in the industries of focus — the New York Declaration on
Forests (NYDF), the Tropical Forest Alliance (TFA) 2020/Consumer Goods Forum and the No Deforestation,
No Peat, No Exploitation (NDPE).

Commitment Overview

Deforestation
Objectives

SocialObjectives

New York
Declaration on
Forests (NYDF)

Series of 10
goals to protect
forests andend forest loss,
endorsed bycountries, local
governments,
companies,
indigenous
groups andNGOs.

• Goal 1: At least
halve the rate ofloss of naturalforests globally by2020 and strive toend natural forest
loss by 2030
• Goal 2: Supportand help meetthe private-sector
goal of eliminating
deforestation fromthe productionof agriculturalcommodities suchas palm oil, soy,paper and beef
products by nolater than 2020,
recognizing thatmany companies
have even more
ambitious targets• Goal 4: Support
2014- 2020/
alternatives to2030
deforestation driven
by basic needs(such as subsistence
farming and relianceon fuel wood forenergy) in ways that
alleviate poverty andpromote sustainable
and equitabledevelopment• Goal 10: Strengthen
forest governance,transparency, andthe rule of law, while
also empoweringcommunities andrecognizing therights of indigenous
peoples, especiallythose pertaining
to their lands andresources

Over 190
endorsers:• including
over 50
governments,• over 50
multi-national
companies,• over 50 civilsociety andindigenousorganizations

Tropical Forest
Alliance (TFA)
2020/ Consumer
Goods Forum(CGF)

Founded to• No Deforestation:
mobilize public
Zero netand private
deforestation by
support for CGF 2020 for palm oil,commitmentssoy, beef, paper
to zero net
and pulp supply
deforestation
chainsby 2020 for
palm oil, soy,beef and paper
and pulp supply
chains.

• Address land
conflicts, tenure
security and land
rights• Sustainably
increasing
smallholder yields• 400 CGF
members• 122 TFA 2020
partners,
including 56
private sector,
15 governments,
49 civil societyand 2 multilateralagencies72 73 74

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

Timeline

2012 -2020

Signatories/
Partners

19Commitment Overview

Deforestation
Objectives

SocialObjectives

Timeline

Signatories/
Partners

No
Deforestation,Peat, Exploitation(NDPE)• No Deforestation:
including HCS,
HCV, burning,
progressively
reduce GHG
emissions on
existing plantations• No developmenton peat: regardlessof depth, best
management
practices forexisting plantations
on peat, where
feasible, explore
options for peat
restoration

No Exploitation of
People and Local
Communities:
Universal Declarationon Human Rights,
respect andrecognize therights of all workers
including contract,
temporary andmigrant workers,
inclusion ofsmallholders, respectland tenure rights,
respect the rights
of indigenous andlocal communities
to give or withhold
their Free, Prior, andInformed Consent tooperations on lands
to which they holdlegal, communal or
customary rights,
resolve all complaints
and conflicts throughan open, transparent
and consultative
process

201375

Research foundthat NDPE Policies
cover 74 percent
of Southeast
Asia’s Refining
Capacity76

Palm oilsourcing
policiesthat require
suppliers torefrain fromclearing forestsand peatlands
for oil palm
plantations
as well as
exploitation ofworkers andcommunities.

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

20Comparing corporate commitments to JA targets
We overlaid the main objectives of these corporate targets with the objectives of the subset of JAs we
examined, shown in the table below.

Initiative

No
Deforestation
on Target

HCS/HCV
TargetPeat
TargetSocialTargetRestoration
TargetCertification
TargetOther

CentralKalimantan

2020 target
to reduce
deforestation to
20 percent of
2006-2009 baselevels & zerodeforestationfrom palm oil

RSPO Criteria+ Mapping“go and no-gozones” basedon HCS/HCV
assessments

RSPO criteria+ conserving
peatlands
in areas
designatedas non-forest

Reach 20%of total palm
oil production
fromsmallholders,withincreased
productivity
and reduced
poverty

Restoration
is included inspatial plan toprotect andrestore forestsand othercritical areas

Goal of 100
percent RSPO
certification;
support ISPO
certification

Memberof theGovernors’
Climate andForests Task
Force (GCF)& signed the
Rio Branco
Declaration

Looking into
forest andpeatlandrestoration asmechanism
for HCV
compensation

Goal of 100
percent RSPO
certification

Member of
the Global
Bonn
Challenge
to restore
150 million
hectares ofdeforested
anddegradedland by2020 and
350 million
hectares by2030

By 2020,
ecosystem
resilienceand thecontribution of
biodiversity tocarbon stocks
has beenenhancedthroughconservation
and restoration,
includingrestoration of atleast 15 percent
of degradedecosystems

Support ISPO
implementation
and RSPO
certification

RSPO Criteria

South
Sumatra

SLP
Indonesia

2030 green
growth strategy
for avoiding
conversion ofnatural forest fromalmost 150,000
hectares

RSPO Criteria+ forest
management
plan forprotecting HCV/HCS areas

RSPO Criteria+ peatmoratoriumand peatland
management

By 2020, rate ofloss of all natural
habitats andforests, is at least
halved and where
feasible broughtclose to zero, anddegradation andfragmentation
is significantly
reduced. Goalof emission
reductions
resultingfrom avoided
deforestation of
60,000 hectaresof peat forest in
four years’ time

By 2020
managementof 200,000
hectares ofconservationarea, ecosystem
resilience andthe contributionof biodiversity
to carbon
stocks has
been enhanced
throughconservation
and restoration

Protection
andmanagementof peatland
requiredundernational
decree no.
57- 2016 andonservation
Internationaltarget of
avoideddeforestationfrom 60,000
hectares ofpeat forest

Socialresilience
Livelihood
improvement
RSPO criteria

Improved
smallholder
production
andlivelihoods

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

21

Initiative

No
Deforestation
on Target

HCS/HCV
TargetPeat
TargetSocialTargetSabah

Goal of zerodeforestation
supply chains

RSPO Criteria +Mapping HCS/HCVRSPO criteria Support
smallholder
alternative
livelihoods

Restoration
TargetCertification
TargetOther

Plan to restore
500,000
hectares ofdegraded land

100 percent
RSPO andsupport MSPO
*initiative still
determining
how to go
about RSPO vs
MSPO

Goal of 30
percent landas protectedarea by2025

RSPO criteria

Mata
GrossoRemovedeforestationfrom soy andcattle supply
chains. 2030
Goal includes
reducing Amazon
deforestation
by 90 percent
and Cerrado
degradation by
95 percent

No
commitment

Nocommitment

By 2030,
increase land
regularizationand market
access ofsmallholders
to 70%,
increaseshare ofsmallholder
products by
30%, andprovidetechnical
assistanceand rural
extension
to 100% offamilies

By 2030,
doublelivestockand grain
productivity
while
increasing
forest area andmanagement.
Restore 1
million ha ofdegraded APP

No commitment

Founding
member of
Governors’
Climate andForests Task
Force (GCF)

ParáGoal of zero net
deforestationNo
commitment

Nocommitment

Supportalternative
livelihoods
and social
development

Plant 100
million newtrees

No commitment

Founding
memberof theGovernors’
Climateand Forests
Task Force(GCF) andsignatory
to the Rio
BrancoDeclaration

From this analysis, it is clear there are gaps and misalignments in the JA initiative objectives and existing
corporate commitments. Timelines for leading jurisdictional initiatives extend beyond 2020 and insome instances their no deforestation commitments are not as explicitly defined compared to corporate
commitments. By contrast, corporate commitments are currently aimed at 2020 and many are explicitly
focused on NDPE using HCV and HCS methodologies. Furthermore, corporate commitments related tosocial issues give emphasis to human rights including indigenous peoples’ rights, land rights, Free Priorand Informed Consent (FPIC) whereas jurisdictional initiative social objectives focus heavily on smallholder
productivity, livelihoods and inclusion.

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

22

mallholder productivity, livelihoods and inclusion.

5. Commercial viability analysis of the global palm oil market inrelation to Jurisdictional Approaches

5. COMMERCIAL VIABILITY ANALYSIS OF THE
A critical factorGLOBAL
in assessing PALM
and understanding
the timing andpotential impact of
JAs is commercial
OIL MARKETIN RELATION
TO
iability. We examined the commodity production potential of leading jurisdictional initiatives based on
JURISDICTIONAL APPROACHES
olume and area of crop production. Jurisdiction-specific data was then compared with global commodity

ector data to help understand the overall percentage of commodity supply from a particular jurisdiction
A critical factor in assessing and understanding thePalm oil plays a critical role in supplying globalnd the degree
to whichcurrent
andemerging
JA initiatives
canforpotentiallyto thetimingand potential
impactof JAsis commercial
demandvegetable oils.contribute
In terms of production,
viability. We examined
production sector
it is produced
28 countries
in Asia,analysis
Latin America
ustainability transformation
ofthe
ancommodity
entire commodity
such asinpalm
oil. Thisfocusedpotential of leading jurisdictional initiatives based on
and Africa. During the last 20 years, it has expanded
primarily on palm
oilandduehigher numberrapidlyof distinct
JAsdominant
in developmentin palm
volumeareatoofthe
croprelatively
production. Jurisdictionand is now
in the edible oils
sector. oil
specific data was then compared with global
Two countries dominate the palm oil industry;
producing jurisdictions.

commodity sector data to help understand theIndonesia produces 55 percent of global palm oiloverall percentage of commodity supply from a
production and Malaysia produces 29 percent.
Palm oil plays particulara criticalrole in andsupplying
globaldemand forvegetableoils. global
In terms
of production,
it isjurisdiction
the degree
to which
Malaysia
was the major
producerof palm
current
andemergingJA
initiatives
canpotentially
oil
until
2006,
when
it
was
surpassed
due
to
rapid
produced in 28 countries in Asia, Latin America and Africa. During the last 20 years, it has expanded
contribute to the sustainability transformation
expansion in Indonesia. It should be noted that
apidly and is ofnow
dominantin theedibleTwocountries
dominatethepalm
oil industry;an entirecommodity
sectorsuch asoils
palmsector.
oil.
Thailandand various
countriesin Latin
AmericaandThis
analysis
focusedprimarily
on
palm
oil
due
Africa
have
also
been
expandingtheirproductionndonesia produces 55 percent of global palm oil production and Malaysia produces 29 percent. Malaysia
to the relatively higher number of distinct JAs in
during the last decade.
was the majordevelopment
global producer
palm oil
until 2006, when it was surpassed due to rapid expansion inin palm oilofproducing
jurisdictions.

ndonesia. It should be noted that Thailand and various countries in Latin America and Africa have also
been expanding their production during the last decade.

Global Palm Oil Production 2018

Indonesia
Malaysia
Thailand
Colombia
Nigeria
GuatemalaEcuadorHonduras
Papua New Guinea
Ghana

Cote d'Ivoire
BrazilCameroon
Figure 1. Global Palm Oil Production in 2018, with Production, Supply and Distribution data from the USDA Foreign Agricultural
Service23
Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains23

Figure1. 1.
GlobalPalm
OilOil
Production
in in
2018,
with
FigureGlobalPalm
Production
2018,
withProduction,
Production,Supply
SupplyandandDistribution
Distributiondata
datafrom
fromthethe
USDA
ForeignAgricultural
Service
USDA Foreign Agricultural Service
Figure 1. Global Palm Oil Production in 2018, with Production, Supply and Distribution data from theForeign35
Agricultural
ServicePalmoilUSDA
represents
percentofallallvegetable
oils
Palm
oil
represents
35
percentofvegetableoilsproduced
producedglobally,
globally,recently
recentlysurpassing
surpassingsoybean
soybeanoil
oilininPalm
oilrepresents
35
percentofallvegetableoilsproduced
globally,
recently
surpassing
soybeanoilinmarketshare,
andrepresents
6262
percent
ofof
allallvegetablemarketshare,
andrepresents
percent
vegetableoiloilexports.
exports.ItIthas
hasbecomebecomea amajor
majorforce
forceinin
Palm oilrepresents
35 percentof
all vegetableoils produced
globally,
recently
surpassing
soybeanoil inmarketshare,
andrepresents
62
percentofallvegetableoilexports.
It
has
become
a
major
force
in
tradedtradedoils
andisraisingsignificant
environmentalandsocialconcerns,
especiallyinEuropeanandU.S.
tradedmarket
oils and is raising
significant
environmental
and social
concerns,
especiallyinEuropean
and
U.S.
and
represents
62 percent andof allvegetable
oil exports.
It hasbecome anda majorinoils and isshare,raisingsignificant
environmentalsocialconcerns,
especiallyin European
U.S. force
markets.
markets.
markets.
traded oils and is raising significant environmental and social concerns, especially in European and U.S.
markets.
GlobalVegetable
OilOil
Production
GlobalVegetable
Production
Vegetable
OilsOils
2018
Vegetable
2018
Global Vegetable Oil Production% %Palm
Oil Vegetable
69.77
35%
Palm
Oil
69.77
35%%
Oils
2018
Palm
69.77
35%
Soybean
56.16
28%
Soybean
OilOilOil
56.16
28%
Soybean
56.16
28%
Rapeseed
28.76
15%
Rapeseed
OilOil Oil
28.76
15%
Rapeseed
Oil
28.76
15%
Sunflower
17.79
Sunflower
OilOil17.79
9%9%Sunflower
Oil
17.79
Kernel8.12
PalkPalk
KernelOilOil8.12
4%4%9%
Palk Kernel Oil
8.12
4%
Peanut5.97
PeanutOil Oil
5.97
3%3%
Peanut Oil
5.97
3%
Cottonseed
5.06
Cottonseed
OilOil5.06
3%3%3%
Cottonseed Oil
5.06
Coconut
Oil Oil
3.443.44
Coconut
Oil
3.44
2%2%2%
Coconut
Olive
Oil Oil
2.712.71
Olive
Oil Olive
2.71
1%1%1%
Total
197.78
Total Total
197.78197.78

GlobalGlobalVegetable
VegetableOil
OilExports
Exports
Vegetable
Oils
2018
%%
Vegetable
Oils
2018
Global Vegetable Oil Exports
Palm
OilOil Oils
50.12
Palm
50.12
62%
Vegetable
2018%62%
Palm OilOilOil
50.12
62%
Soybean
10.89
13%
Soybean
10.89
13%
Soybean Oil
10.89
13%
Sunflower
9.23
11%Sunflower
OilOil9.23
11%Sunflower
Oil
9.23
11%
Rapeseed
4.61
6%
Rapeseed
OilOil
4.61
6%
Rapeseed
OilOil
4.61
6% 4%
Palk
Kernel
3.18
Palk
KernelOil
3.18
4%Palk Kernel Oil
3.18
4%
Coconut
1.70
2%
Coconut
OilOil
1.70
2%Coconut Oil
1.70
2%
Olive
Oil
0.96
1%
Olive
Oil
0.96
1%
Olive Oil
0.96
1%
PeanutOil
0.26
0%Peanut0.26
PeanutOil
Oil
0.26
0%0%
Cottonseed
Oil
0.09
Cottonseed
Oil
0.09
0%
Cottonseed Oil
0.09
0% 0%
Total
81.04
Total
81.04
Total
81.04

FiguresandGlobalOil Production(2)Production
and Exports (2)withProduction,
SupplyandDistribution
data Supply
fromSupply
the USDA
Figures2
3.Vegetable
GlobalVegetable
OilProduction(2)
andExports(3),
with
Production,
andandFigures
22and3.
GlobalVegetable
andExports(3),with
with
Production,
andFigures
2 and
3.3.and
GlobalVegetable
OilOil
Production(2)(3),
andExports(3),
Production,
SupplyForeign Agricultural Service
Distribution
data
from
the
USDA
ForeignAgricultural
Service
Distribution
data
from
the
USDA
ForeignAgricultural
Service
Distribution
data
from
the
USDA
ForeignAgricultural
ServicePalmis versatile
andusedis usedina varietyofofmarkets.
markets. Figure
Figure 44 below
gives
a listingof of
all markets
that thatPalm
oil
isoiloilversatile
andaa variety
varietybelow
gives
listing
marketsPalm
oilPalm
is versatile
and
is is
used
in in
ain varietyof
Figure4 belowgives
a alistingof allallmarkets
thatis versatile
andis usedof markets.
markets. Figure
4 belowgives
a listingof all markets
thatimport at least 500,000 metric tons of palm oil per year.
importat
least
500,000
metric
tons
of
palm
oil
per
year.
importat
least
500,000
metric
tons
of
palm
oil
per
year.
import at least 500,000 metric tons of palm oil per year.
Countries that Import 500,000 M tons or More

CountryCountry
India
CountryCountries
that
Import500,000
Mtons
More
2010 Countries
2011
2012
2013
2014
that
Import500,000
Mtons
oror
More

2015

2016

2017

20105,584
2011
2012
2013
2014
2015
2016
2017
7,201
8,364
7,820
9,139
8,860
9,341
10,6002017
2010
2011
2012
2013
2014
2015
2016
India European Union
5,5844,944
7,201
8,364
7,820
9,139
8,860
9,341
10,600
6,969
6,935
6,636
7,251
6,500
India
5,584
7,201 5,707
8,3646,812
7,820
9,139
8,860
9,341
10,600
China
5,841
6,589
5,573
5,696
4,689
4,8817,251
4,800 6,500
EuropeanUnion
4,9445,711
5,707
6,812
6,969
6,935
6,636
European Union
4,944
5,707
6,812
6,969
6,935
6,636
7,251
6,500
2,217
2,245
2,725
2,826
2,720
3,0754,881
3,100 4,800
China Pakistan
5,7112,062
5,841
6,589
5,573
5,696
4,689
China
5,711
5,841
6,589
5,573
5,696
4,689
4,881
4,800
1,030
1,232
1,280
1,511
1,3143,075
1,600 3,100
PakistanBangladesh
2,062 996
2,217984
2,245
2,725
2,826
2,720
Pakistan United States
2,062
2,217
2,245
2,725
2,826
2,720
3,075
3,100
980
1,032
1,293
1,220
1,143
1,307
1,367
1,445
Bangladesh
996
984
1,030
1,232
1,280
1,511
1,314
1,600
BangladeshEgypt
996 1,277
984 1,204
1,030 969
1,232
1,280
1,511
1,314
1,075
1,489
1,038
1,323
1,3001,600
United States
980
1,032
1,293
1,220
1,143
1,307
1,367
1,445
United States
980
1,032 324
1,293 234
1,220
1,143
1,307
1,367
Philippines
547
681
792
941
1,150
1,1001,445
Egypt
1,277
1,204
969
1,075
1,489
1,038
1,323
1,300
Russia
655
646
854
933
848
8501,300
Egypt
1,277
1,204 545
969 806
1,075
1,489
1,038
1,323
Philippines
547
324
234
681
792
941
1,150
1,100
390
581
789
788
780
8001,100
Philippines Burma
547
324 470
234 583
681
792
941
1,150
Russia Vietnam
655 565
545
806
646
854
933
848
850
697
715
727
800848790 850
Russia655
545 570806 574646
854
933
Burma Kenya
390 498
470532
583
581
789
590
575
633
695788767 780
750 800
Burma
390
470
583
581
789
788
780
800
VietnamMalaysia
5651,593
570
574
697
715
1,852
957
358
991
816727598 800
750 790
Vietnam
565
570
574
697
715
727
800
790
595
598
618
622695700 767
720 750
Kenya Japan498 570532580
590
575
633
Kenya
498
532
590
575
633
695
767
750
Turkey576
565
608
634816612 598
650 750
Malaysia
1,593 424
1,852445
957
358
991
Malaysia Benin
1,593
1,852
957
358
991
816
598
506
660
541
514622630 700
630 750Japan
570 305
580309
595
598
618
720
Japan
570
580 318595 333
598
618
622
Tanzania
314
471
488
507
580700560 720
Turkey
424
445
576
565
608
634
612
650
Turkey424
445 308576 347
565
608
634
Korea, South
284
403
445
480
527612530 650
Benin
305
309
506
660
541
514
630
630
Mexico
373
446
480
475
495630510 630Benin
305
309 440
506 462
660
541
514
Tanzania
314
318
333
471
488
507
580
560
72
353
415
416
500580500 560
Tanzania Saudi Arabia
314
318 263333 290471
488
507
Korea, South
284
308
347
403
445
480
527
530
Korea, South
284
308
347
403
445
480
527
530
Mexico
373
440
462
446
480
475
495
510
Figure 4. Global import volumes of palm oil with Production, Supply and Distribution data from the USDA Foreign Agricultural Service
Mexico
373
440
462
446
480
475
495
510
Saudi Arabia
72
263
290
353
415
416
500
500
Saudi Arabia
72
263
290
353
415
416
500
500

24

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

24

24
24

stimulate export of RBD over CPO and spur development of domestic refining
and Malaysia imposed export taxes on CPO and, in 2011, Indonesia slashedtime of writing this report, the export tax on CPO from Malaysia has been su
a duty of $50/Mt CPO. Figure 5 shows some of the impacts of Indonesia’s exdramatic loss in market share in India, the world’s biggest palm oil market.

The end use of palm oil varies depending on
the market. In the U.S., it is used primarily as aningredient in processed foods or for personal careproducts. In the EU, the uses are similar, but also
about 40 percent of palm oil is used for biodiesel.
In Latin America and Asia, it is primarily used as
cooking oil, in addition to being used in processed
foods and personal care products. These usage
patterns have significant impact on market demand.
In 2010, China was the world’s largest importer ofpalm oil. This situation has changed for a number ofreasons:• China is the world’s largest importer of soybeans
to produce feed for its livestock sector,
which is undergoing an expansion as well as
intensification. As a result, it produces a lot ofsoybean oil, which is displacing palm oil.77, 78• India has seen an increase in per capita
consumption of edible oils and, given its
growing population, imports have dramaticallyincreased.79, 80
Another factor impacting trade flows has beenchange in export taxes. Malaysia and Indonesia
routinely change their export duties for several
reasons — low palm oil prices, increasing stocks,
or in response to each other’s tax moves. Anotherreason is the desire by Malaysia and Indonesia
to increase the value of exports by exporting
palm oil that has been refined, bleached anddeodorized (RBD) rather than crude palm oil (CPO).
Countries such as India and Europe have refining
capacity and prefer to import CPO, however, theU.S., China, and developing countries prefer topurchase RBD refined oil or fractions. To stimulate
export of RBD over CPO and spur developmentof domestic refining capacity, both Indonesia andMalaysia imposed export taxes on CPO and, in 2011,
Indonesia slashed export taxes on RBD. At the timeof writing this report, the export tax on CPO from
Malaysia has been suspended, and Indonesia has
a duty of $50/Mt CPO. Figure 5 shows some of the
impacts of Indonesia’s export taxes resulting in a
dramatic loss in market share in India, the world’s
biggest palm oil market.

INDIA: CRUDE PALM OIL IMPORTS (thousands M tons)%
Year Indonesia
Malaysia
Total Indonesia
2006
1,941
359
2,299
84%
2007
2,690
256
2,946
91%
2008
3,797
462
4,259
89%
2009
4,179
663
4,842
86%
2010
4,131
614
4,744
87%
2011
1,019
3,949
4,967
21%
2012
3,786
2,077
5,864
65%
2013
3,593
1,688
5,281
68%
2014
3,379
2,594
5,973
57%
2015
3,924
3,331
7,255
54%
2016
2,966
2,317
5,284
56%

Figures
India’s
palmpalm
oil imports,based onbased
data from
Figure5.5.
India’soil imports,
onResource
data from Resource Trad
Trade.Earth

In a surprise move, in March 2018, the government of India dramatically raisboth CPO and RBD. CPO duties increased from 30 percent to 44 percent, andIn
surprisein March2018,
the government
40apercent
to move,
54 percent.
This tax
increase
was made protect the local produ

of India dramatically raised their import duties onboth CPO and RBD. CPO duties increased from 30
percent to 44 percent, and RBD duties increased
from 40 percent to 54 percent. This tax increase
was made protect the local production of oilseeds(rapeseed and soybean), as well as the domestic
crushing industry. Given that India is the largest
importer of palm oil globally, we can expect this tocreate further volatility and shifts in trade flows.

Another interesting trend in trade flows has been
the emergence of other exporters, namely Latin
America, into the European market. Given thatIndonesia and Malaysia produce 85 percent of
global palm oil, they will always be a major player,
but it is interesting to note the inroads that Latin
America producers are having in Europe. Figure 6
below shows the steady increase in market sharefor Latin American palm oil in the Netherlands
market for CPO, reaching 28 percent of theNetherlands imports in 2016. There are manyfactors at play here, including lower freight costs aswell as reduced reputational risks vis-à-vis sourcing
from Southeast Asia. In this case, exports fromThailand, Malaysia and Indonesia were displaced
from palm oil produced in Honduras, Guatemala
and Colombia.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains25

producers are having in Europe. Figure 6 below shows the steady increase in market share for Latin
American palm oil in the Netherlands market for CPO, reaching 28 percent of the Netherlands imports in
2016.81 There are many factors at play here, including lower freight costs as well as reduced reputationalrisks vis-à-vis sourcing from Southeast Asia. In this case, exports from Thailand, Malaysia and Indonesia
were displaced from palm oil produced in Honduras, Guatemala and Colombia.

Netherlands:% CPO Imports by Source
Netherlands: % CPO Imports by Source
100%
90%
80%

Other

70%

Thailand

60%

50%

PNG

40%

Indonesia

30%

Malaysia

20%

Latin America

10%
0%

2011

2012

2013

2014

2015

2016

Figure 6. Netherlands’ percent palm oil imports by country, based on data from Resource Trade.Earth

Figure 6. Netherlands’ percent palm oil imports by country, based on data from Resource

Trade.Earth
The German crude palm oil market has followed

environmental performance. Like other European
a similar pattern to the Netherlands, where Latinmarkets, Germany also imports palm oil from theAmerican palm oil increased market share over five
Netherlands, which has long been a major tradingor six years to 31 percent in 2016. Germany alsocountry in agricultural commodities. It is also
The
crude
palmonoilpalm
markethas followed
pattern totothe
Netherlands,
where
Latin
has Germana stronger
relianceoil produced
in a similarinteresting
notethat Malaysia
has arelatively
Papua
New
Guinea,which
isproducedfromawellsmall
share
of
this
market,
and
for
the
last
fewhasyears,
American palm oil increased market share over five or six years to 31 percent in 2016. Germany also82
regarded
operation
known
for
its
socialand
Thailandhas
notparticipated.
a stronger reliance on palm oil produced in Papua New Guinea, which is produced from a well-regarded
operation known for its social and environmental performance. Like other European markets, Germany
also imports palm oil from the Netherlands, which has long been a major trading country in agricultural
Germany: % CPO Imports by Sourcecommodities. It is also interesting to note that Malaysia has a relatively small share of this market, and120%
forthe last few years, Thailand has not participated. 82

Germany: % CPO Imports by Source
100%
80%
60%
40%
20%
0%

2011

2012

2013

2014

2015
PNG

Latin America

Indonesia

Malaysia

Netherlands

Thailand

Other

2016

26

Figure 7. Germany’s percent palm oil imports by country, based on data from Resource Trade.Earth

Figure 7. Germany’s percent palm oil imports by country, based on data from Resource Trade.Earth

A comparison of production potential in existing JA
deforestation’ palm oil. The total volume of palm
initiatives shows that success by Sabah alone (withproduced in the leading jurisdictions (North and
A comparison of production potential in existing JAoilinitiatives
shows that success by Sabah alone (with aa capacity to produce 9.343M metric tons/ 2017)[i]South
Sumatra, Central Kalimantan and Sabah) is
83
capacity
toall
produce
9.343M
metricfortons/
2017) could
meet
all of
EU demandfor andcertified
could meetof U.S. andEU demand
certifiedmore thantwice
theU.S.
total anddemandfrom the U.S.
84
sustainable palm(~8.591M
metricmetrictons/2017)is a criticalcurrently
need to expand
marketsustainablepalmoiloil(~8.591M
tons/2017) Europe.
— the There
only markets
requesting
‘no
[ii]—
the
only
markets
currently
requesting‘nodemandforsustainable
palm
oil.
deforestation’ palm oil. The total volume of palm oil produced in the leading jurisdictions (North andSouth Sumatra, Central Kalimantan and Sabah) is more than twice the total demand from the U.S. andEurope. There is a critical need to expand market demand for sustainable palm oil.
Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains26

6. CONCLUSIONS AND RECOMMENDATIONS
Our findings from interviews and research combined with our experience with commodity supply chains inboth Indonesia and Brazil 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

27

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.
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

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.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains28

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 Chains29

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.
• 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, andinvest 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.

Conclusion: 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 isunrealistic to think that all producers could achieve
one fixed standard at one time, so jurisdictional
implementation plans will need to account for thisvariability and provide appropriate flexibility andincentives, both carrots and sticks, to drive continued
improvement and adherence to jurisdictionalsustainability 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 important firststep in a JA even though it is not the last. Where
needed, we should capture the advances tobe 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 andprogress, it should be acknowledged even if
the final goals are not yet achieved. Let’s not
destroy the laboratory before the experiment iscompleted. We need innovation, experimentation,
good monitoring, adaptive management anddocumentation of lessons learned along the way.
There will be failures— let’s learn from them.

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains30• 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 Chains31Annex A: Endnotes¹Donofrio, Stephen, Philip Rothrock, and Jonathan Leonard. 2017. Supply Change: Tracking Corporate Commitments to
Deforestation-free Supply Chains. Washington, DC: Forest Trends. https://www.forest-trends.org/wp-content/
uploads/2017/03/2017SupplyChange_FINAL.pdf²Kissinger, Gabrielle, Martin Herold, and Veronique de Sy. 2012. Drivers of Deforestation and Forest Degradation: A
Synthesis Report for REDD+ Policymakers. Lexeme Consulting. https://assets.publishing.service.gov.uk/government/
uploads/system/uploads/attachment_data/file/65505/6316-drivers-deforestation-report.pdf³Lawson, Sam. 2014. Consumer Goods and Deforestation: An Analysis of the Extent and Nature of Illegality in Forest
Conversion for Agriculture and Timber Plantations. Forest Trends. https://www.forest-trends.org/publications/consumergoods-and-deforestation/
⁴Chain Reaction Research. 2017. Indonesia’s Palm Oil Landbank Expansion Limited by Proposed Moratorium and NDPE
Policies. https://chainreactionresearch.files.wordpress.com/2017/02/indonesia_s-palm-oil-landbank-expansion-limited-byproposed-moratorium-and-ndpe-policies-170213.pdf
⁵TFA2020. 2017. Supporting jurisdictional leadership in net zero deforestation through sustainable value chains.
AlphaBeta. Accessed October 3, 2017. https://www.tfa2020.org/wp-content/uploads/2017/04/TFA2020-Supportingjurisdictional-leadership-in-net-zero-deforestation-Report.pdf
⁶Denier, Louisa et al. 2015. The Little Sustainable Landscapes Book: Achieving sustainable development throughintegrated landscape management. Global Canopy Programme. https://ecoagriculture.org/publication/the-littlesustainable-landscapes-book/
⁷EII and contributors. Jurisdictional Sustainability: A Primer for Practitioners. http://earthinnovation.org/wp-content/
uploads/2017/02/JS-primer_Englishonline.pdf
⁸Denier, Sustainable Landscapes Book.
⁹Daemeter. 2016. Jurisdictional Approaches to Reducing Palm Oil Driven Deforestation in Indonesia: A Scoping
Study of Design Considerations and Geographic Priorities. Daemeter, Bogor, Indonesia. http://daemeter.org/new/
uploads/20161105170630.Daemeter_JA_2016_Full_Report_ENG.compressed.pdf
INOBU and EII. 2017. “Central Kalimantan: From Sustainable Palm Oil towards Sustainable Jurisdictions.” http://newsite.
inobu.org/wp-content/uploads/2017/03/INOBU-FS-1-Central-Kalimantan.pdf
10

Ibid.

11

Earth Innovation Institute. Central Kalimantan. Web Access Nov 5, 2017. http://earthinnovation.org/our-work/regionalinitiatives/indonesia/central-kalimantan/
12

INOBU and EII, Central Kalimantan.

13

INOBU. 2016. “Press Release: Central Kalimantan’s Seruyan District Leading a Global Initiative for Supporting
Sustainable Palm Oil Production: Update from the RSPO Annual Meeting”. Web Access Nov 6, 2017. http://inobu.org/
press-release-central-kalimantans-seruyan-district-leading-a-global-initiative-for-supporting-sustainable-palm-oilproduction-update-from-the-rspo-annual-meeting/
14

INOBU. 2017. Mapping. Web Access Nov 5, 2017. http://inobu.org/projects/mapping/

15

INOBU. 2016. A Profile of Small-scale Oil Palm Farmers and The Challenges of Farming Independently. http://newsite.
inobu.org/wp-content/uploads/2016/11/INOBU_Smallholders_Final.pdf
16

IDH. 2016. Landscapes in Indonesia that IDH supports: Aceh, South Sumatra and West Kalimantan. Web Access: Nov 16

17

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18
Ariestya, Angga. 2017. “Gubernorial Regulation promulgated on green economic growth in South Sumatra, Indonesia.
Agroforestry World. Web Access: December 6, 2017. http://blog.worldagroforestry.org/index.php/2017/11/30/gubernorialregulation-promulgated-green-economic-growth-south-sumatra-indonesia/
Dewi, Sonya. 2017. “Integrative, Inclusive and Informed Planning for Green Growth”. International Conference
and Congress of The Indonesian Society of Agricultural Economics ICC-ISAE. http://www.perhepi.org/wp-content/
uploads/2017/08/12.-Dr.-Sonya-Dewi_ICC-ISAE_Speaker-Session-2.pdf
19

IDH, Landscapes in Indonesia.

20

Ariestya, Gubernorial Regulation.

21

Kelola Sendang – protecting Sumatran Tiger Habitat. ZSL. Web Access December 7, 2017. https://www.zsl.org/
conservation/regions/asia/kelola-sendang-%E2%80%93-protecting-sumatran-tiger-habitat
22

Chain Reaction Research, Indonesia’s Palm Oil Landbank.

23

Daemeter, Jurisdictional Approaches to Reducing Palm Oil Driven Deforestation.

24

Musi Banyuasin; Jurisdictional Certification Plan. IDH. Web Access December 16, 2017. https://www.idhsustainabletrade.
com/uploaded/2016/11/Musi-Banyuasin-Jurisdictional-Certification-Plan-1.pdf
25South Sumatra, Indonesia. IDH. Web Access: December 8, 2017. https://www.idhsustainabletrade.com/landscapes/
south-sumatra/
26

Banyuasin, Jurisdictional Certification Plan.

27

Ong, Cynthia. Nov 12, 2017.Sabah Talking Points for Bonn - “Produces 10% of global palm oil supply.”

28

Ong, Cynthia. 2017. Sabah’s RSPO Jurisdiction Certification 2025 (JC2025); a progress update in brief.

29

TFA2020. 2017. Supporting jurisdictional leadership in net zero deforestation through sustainable value chains.
AlphaBeta. Accessed October 3, 2017. https://www.tfa2020.org/wp-content/uploads/2017/04/TFA2020-Supportingjurisdictional-leadership-in-net-zero-deforestation-Report.pdf
30

Payne, John. 2016. Introduction to the Sabah Jurisdictional Approach for Sustainable Palm Oil Production. Accessed
October 3, 2017. https://rt14.rspo.org/ckfinder/userfiles/files/PC4_4_2%20Datuk%20Dr%20John%20Payne.pdf
31

Ibid.

32

Ong, Sabah’s RSPO Jurisdiction Certification.

33

Payne, Introduction to Sabah Jurisdictional Approach.

34

TFA2020, Supporting Jurisdictional Leadership.

35

Ong, Sabah’s RSPO Jurisdiction Certification.

36

Sustainable Landscapes Partnership. Conservation International. https://www.conservation.org/projects/Pages/sustainable-landscapes-partnership-northern-sumatra-indonesia.aspx
37

Conservation International. 2016. Sustainable Landscapes Partnership in Indonesia. https://www.conservation.org/
publications/Documents/CI_SLP-Indonesia-Framework.pdf
38

Strengthening Environment Safeguards using strategic environmental assessments (SEAs). Conservation International.
https://www.conservation.org/publications/Documents/CI_SLP-Strengthening-Environment-Safeguard-using-SEA.pdf
39

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

33

Sustainable landscapes partnership Factsheet. Conservation International. https://www.conservation.org/publications/
Documents/CI_SLP_Sustainable-Landscapes-Partnership_Factsheet.pdf
40

CI, Sustainable Landscapes Partnership.

41

CI, Sustainable Landscapes Indonesia.

42

CI, Strengthening Environment Safeguards.

43

CI, Sustainable Partnerships Factsheet.

44

TFA 2020. 2017. Supporting jurisdictional leadership in net zero deforestation through sustainable value chains.
AlphaBeta. Accessed October 3, 2017. https://www.tfa2020.org/wp-content/uploads/2017/04/TFA2020-Supportingjurisdictional-leadership-in-net-zero-deforestation-Report.pdf
45“The Mato Grosso PCI Strategy” and “PCI Dashboard”. Produce Conserve Include. Web Access: January 4, 2018. http://
produceprotectplatform.com/matogrosso_pci#cop_21
46

TFA2020, Supporting Jurisdictional Leadership.

47

PCI, The Mato Grosso PCI Strategy.

48

TFA 2020, Supporting Jurisdictional Leadership.

49

PCI, The Mato Grosso PCI Strategy.

50

Governor of Mato Grosso. 2017. Bases for Monitoring the PCI Goals; Produce, Conserve and Include (PCI)
Strategy in Mato Grosso. 2017. http://produceprotectplatform.com/img/matogrosso/docs/Bases%20para%20o%20
Monitoramento%20das%20Metas%20da%20PCI_BR-EN.pdf
51

Produce Conserve Include (PCI). Web Access: Jan 26, 2017. http://pci.mt.gov.br/52

TFA2020, Supporting Jurisdictional Leadership.

53

PCI, The Mato Grosso PCI Strategy.

54

Whately, Marussia and Campanili, Maura. 2013. Green Municipalities Program: Lessons Learned
and Challenges for 2013/2014. Programa Municipios Verdes. http://www.municipiosverdes.pa.gov.br/files/999816d7a617e650c796109566e1337c/c20ad4d76fe97759aa27a0c99bff6710/versao-ingles%20(1).pdf
55

TFA 2020. 2017. Supporting jurisdictional leadership in net zero deforestation through sustainable value chains.
AlphaBeta. Accessed October 3, 2017. https://www.tfa2020.org/wp-content/uploads/2017/04/TFA2020-Supportingjurisdictional-leadership-in-net-zero-deforestation-Report.pdf
56Whately, Green Municipalities Program.

57

Ibid.

58

Zwick, Steve. 2016. “Brazil’s “Green Municipalitiies”: What Works? What Deosn’t? Why?” Huffington Post. Web Access
Feb 8, 2017. https://www.huffingtonpost.com/steve-zwick/brazils-green-municipalit_b_9398404.html
59Whately, Green Municipalities Program.

60

TFA 2020. 2017. Supporting jurisdictional leadership in net zero deforestation through sustainable value chains.
AlphaBeta. Accessed October 3, 2017. https://www.tfa2020.org/wp-content/uploads/2017/04/TFA2020-Supportingjurisdictional-leadership-in-net-zero-deforestation-Report.pdf
61

Zwick, Brazil’s Green Municipalities.

62

Jurisdictional Approach to Sustainability Commitments in Palm Oil and Soy Supply Chains34

TFA2020, Supporting Jurisdictional Leadership.

63

Whately, Green Municipalities Program.

64

Programa Municipios Verdes. Governo do Pará. Web Access: Feb 5, 2018. http://www.municipiosverdes.pa.gov.br/
pages/municipios_participantes
65

66

TFA2020, Supporting Jurisdictional Leadership.

“Para 2030” sets targets for economic growth with sustainability. SEAD. Published 2016. Web Access: Feb 8, 2017.
http://www.sead.pa.gov.br/noticia/%E2%80%9Cpar%C3%A1-2030%E2%80%9D-apresenta-metas-para-crescimento-daeconomia-com-sustentabilidade
67

68

Whately, Green Municipalities Program.

69

TFA 2020, Supporting Jurisdictional Leadership.

Chain Reaction Research. 2016. The Chain: Most global palm oil trade covered by zero-deforestation. https://chainreactionresearch.com/the-chain-musim-mas-no-deforestation-policy/
70

New York Declaration on Forests. 2018. Web Access: March 2018. http://forestdeclaration.org/about/

71

TFA 2020 Partners. 2018. Tropical Forest Alliance 2020. https://www.tfa2020.org/en/about-tfa/partners/

72

Tropical Forest Alliance 2020. World Economic Forum. https://www.tfa2020.org/wp-content/uploads/2018/01/TFA2020two-pager_print-version-Jan-2018.pdf
73

TFA 2020 Objectives. 2018. Tropical Forest Alliance 2020. https://www.tfa2020.org/en/about-tfa/objectives/

74

Steinweg, et al. 2017. Unsustainable Palm Oil Faces Increasing Market Access Risks: NDPE Sourcing Policies Cover 74
Percent of Southeast Asia’s Refining Capacity. Chain Reaction Research. https://chainreactionresearch.files.wordpress.
com/2017/11/unsustainable-palm-oil-faces-increasing-market-access-risks-final-2.pdf
75

Ibid.

76

Production, Supply and Distribution. USDA Foreign Agricultural Service. Web Access: Jan 2018. https://apps.fas.usda.
gov/psdonline/app/index.html#/app/home77

UN Regional Population Data. Web Access: Feb 2019. http://www.un.org/popin/data.html#Regional Data

78

Production, Supply and Distribution, USDA Foreign Agricultural Service.

79

UN Regional Population Data.

80

Chatham House. Resource Trade.Earth. Web Access: Jan 2018. https://resourcetrade.earth/

81

Ibid.

82

Malaysian Palm Oil Board. 2017. Economics & Industry Development Division. http://bepi.mpob.gov.my/index.php/en/
statistics/production/177-production-2017/792-production-of-crude-oil-palm-2017.html
83

USDA. 2018. Oilseeds: World Markets and Trade. https://apps.fas.usda.gov/psdonline/circulars/oilseeds.pdf

84

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36

Statement from Consumer Goods Forum Co-chairs, acting individually: production protection. 2015. http://tfa2020.org/
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