11.9 Making Connections

INDONESIA’S PALM OIL DILEMMA

Background: Like those in Haiti, Indonesia’s rainforests could potentially be a renewable energy source. But unlike Haiti with its charcoal production, Indonesia leads the global production of palm oil, a commodity for export as a biofuel, cooking oil, and ingredient in industrial products such as cosmetics. Palm trees can produce fruit for 30 years or more, and yield more oil per hectare than other oilseed crops. But the cost of these benefits is the loss of large stands of tropical forest to allow for plantations of palm trees. In Indonesia, the increasing demand for palm oil has accelerated seizure of indigenous peoples’ land, dismantling local communities and cultures and threatening the habitat of endangered species like the orangutan.

A low-carbon alternative to fossil fuel–based gasoline, palm oil biodiesel was seen as a solution to climate change, but recent research revealed that palm oil development involving the clearing of intact tropical rainforest contributes more greenhouse gases than it helps to avoid. In fact, Indonesia already emits more greenhouse gases than any other nation besides China and the United States.

Case: You have been assigned to develop a policy for the future of the Indonesian rainforest. Your team must evaluate various options such as:

1. Protect Indonesian rainforests through the United Nations Reducing Emissions from Deforestation and Forest Degradation (REDD+) program, which offers financial incentives to developing countries to sustainably manage forests to sequester carbon. According to UN estimates, the financial value of greenhouse gas emission reductions through REDD+ could be $30 billion a year (www.un-redd.org).
2. Continue producing palm oil but seek a sustainable biofuel certification (similar to the FSC certification for wood). According to the Palm Oil Action Group, there are millions of hectares of degraded land in Indonesia that could be reclaimed for palm oil plantations.

Research these (and possibly other options) and write a report recommending a course of action. In your report, include the following:

1. An analysis of the pros and cons of each proposal, including: a discussion of the consequences of each choice on local human communities as well as on the rainforest ecosystem. What is the best option for Indonesian rainforests? Who should be involved in this selection? Provide justifications for your proposal.
2. What overall lessons can be learned from the stories of Haiti and Indonesia and applied to other forest ecosystems in jeopardy? Explain your suggestions.