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Deforestation rates for palm oil in Indonesia, Malaysia and Papua New Guinea in 2020 were at the lowest level in three years, according to a new report from Chain Reaction Research (CRR) published on February 9.
The CRR detected approximately 38,000 ha of deforestation in palm oil concessions in the region in 2020. This compared to 90,000 ha in 2019.
Reducing deforestation for palm oil cultivation has been visible since the first half of 2020, according to the CRR, and reasons for the decline included Indonesia's economic contraction and travel restrictions due to COVID-19.
Continued pandemic restrictions in Indonesia and key export markets could explain the continued slow pace of deforestation in the third and fourth quarters of 2020, CRR said, although domestic demand and rising palm oil prices could result in an increase in land development this year.
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In its research, CRR found that approximately 22,000 ha (58%) of the deforestation can be attributed to 10 palm oil companies in Indonesia, with the remainder distributed among 112 other companies. Most of the 10 companies (Sulaidy, Ciliandy Anky Abadi, Bengalon Jaya Lestari, Mulia Sawit Agro Lestari Group (MSAL), PT Permata Sawit Mandiri, IndoGunta, Jhonlin Group, Shanghai Xinjiu Chemical Co, Citra Borneo Indah Group (CBI) and Indonusa) were also listed on CRR's 2019 and 2018 lists, CRR said.
CRR performs free sustainability risk analyzes for financial analysts, credit analysts, commercial bankers, institutional investors, companies and other interested parties. Its analysis on palm oil deforestation was coordinated by Aidenenvironment and its partner organization Earth Equalizer.
This text was automatically translated from English.
Source: OFI Magazine
