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GOVERNMENT’S ROLE IN SUPPORTING     SUSTAINABLE PALM OILSara EppelHead of Sustainable Products and ConsumersDefra
About the presentation1. Current UK Government actions on sustainable palm oil2. Evidence study on UK palm oil consumption...
UK Government interests in sustainable palm oil• Defra: Ministers; green economy, global environment, food  and animal fee...
Policy approach • Complex issue and shared responsibility - businesses,   Governments and NGOs working together • A lot al...
Government Actions1. Intergovernmental forest finance agreements2. Bilateral working with the Indonesian government3. Sust...
The evidence study• Announced by Caroline Spelman July 2010• Being published today• Aim was to bring together data to:   ...
Method and evidence sources3 main approaches to data and information collection:1. Desk-based review2. Systematic intervie...
About 595,000 metric tons of palm oil was imported into theUK in 2009. Most of this came from Malaysia, Indonesia andPapua...
Global significance and trendsThe UK import is equivalent to• Approx 1.2% of global palm oil and palm kernel oil productio...
Main UK uses of palm oil• Food sector use is estimated to be 68% of the total UK import of  palm oil and palm kernel oil. ...
Main UK uses of palm oil are in food and animal feed.Chart shows palm oil, palm kernel oil, biofuel fractions and oleochem...
Sustainability• Of the 643,400 metric tons of palm oil and fats the UK  imported in 2009, it is estimated that 24% is sust...
Sectoral progress towards sustainable palmoil consumption• Biofuels industry is covered by mandatory EU sustainability  st...
Policy options and next stepsStudy is just being published today, next steps underconsideration:1.Support for key business...
Further information 2 evidence study reports - supply chain mapping and policy options at: www.defra.gov.uk/environment/ n...
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Session 6-4-sara-eppel-the-role-of-consumer-governments-in-supporting-sustainable-palm-oil-1479

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Consumer governments role in supporting sustainable pam oil production

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Session 6-4-sara-eppel-the-role-of-consumer-governments-in-supporting-sustainable-palm-oil-1479

  1. 1. GOVERNMENT’S ROLE IN SUPPORTING SUSTAINABLE PALM OILSara EppelHead of Sustainable Products and ConsumersDefra
  2. 2. About the presentation1. Current UK Government actions on sustainable palm oil2. Evidence study on UK palm oil consumption3. Possible future Government actions4. Questions
  3. 3. UK Government interests in sustainable palm oil• Defra: Ministers; green economy, global environment, food and animal feed.• Other Government Departments,  Department for Energy and Climate Change  Department for International Development  Department for Business, Innovation and Skills  Foreign and Commonwealth Office  Department for Transport.
  4. 4. Policy approach • Complex issue and shared responsibility - businesses, Governments and NGOs working together • A lot already being done (eg RSPO standards and certification; big business commitments to sustainable sourcing; third sector publicity about good and bad practice) • Assist the transition towards sustainable production and consumption. Not duplicate or take over action by others.
  5. 5. Government Actions1. Intergovernmental forest finance agreements2. Bilateral working with the Indonesian government3. Sustainability criteria for biofuels (EU Renewable Energy Directive, UK Renewable Fuel Obligation, ROCs).4. Project with RSPO on a robust greenhouse gas standard.5. Project with the Chinese Chamber of Commerce.6. Evidence study to map UK palm oil supply chains
  6. 6. The evidence study• Announced by Caroline Spelman July 2010• Being published today• Aim was to bring together data to:  map UK palm oil consumption,  understand how far current commitments will take us  consider how much further there is to go, and  consider where efforts should be focused.
  7. 7. Method and evidence sources3 main approaches to data and information collection:1. Desk-based review2. Systematic interviews and questionnaires to supply chain.3. Collecting stakeholder views at meetings, presentations, workshopsCaveat: The report is designed to give a best estimate of flowsand quantities, it includes assumptions about market sharesand product ranges so the numbers are only a guide.
  8. 8. About 595,000 metric tons of palm oil was imported into theUK in 2009. Most of this came from Malaysia, Indonesia andPapua New Guinea and the Solomon Islands.In addition to the palm oil shown in thisdiagram the UK imported:• about 660,000 metric tons palm kernelmeal, mainly from Indonesia, 5x oil importabout 45,000 metric tons of palm kernel oil,also mainly from Indonesia, and•a significant volume in finished products,likely more than 300,000 metric tons
  9. 9. Global significance and trendsThe UK import is equivalent to• Approx 1.2% of global palm oil and palm kernel oil production.• Approx 10% of the global output of palm kernel meal.Quantities of palm oil imported to the UK have decreased by 40% over the past five years. Reasons may include• Changes in commodity prices, ??brand damage??• Food manufacturers seeking to reduce saturated fats, and• Drop in use of palm methyl ester for biodiesel (by 50% between 2009/10 and 2010/11).
  10. 10. Main UK uses of palm oil• Food sector use is estimated to be 68% of the total UK import of palm oil and palm kernel oil. Biscuits make up the largest share of this, using over 20% of the total import of palm oil. Frying fats, snacks, confectionary and dairy and dairy replacers also use significant quantities.• Animal feed use (also ultimately for food) also very significant. Estimated 23% of the imported palm oil and palm kernel oil, plus over 80% of the imported palm kernel meal, is used for animal feed
  11. 11. Main UK uses of palm oil are in food and animal feed.Chart shows palm oil, palm kernel oil, biofuel fractions and oleochemicalsbut not finished products.Also additional 660,000 metric tons palm kernel meal mainly used foranimal feed (but this is a by-product and does not drive production).
  12. 12. Sustainability• Of the 643,400 metric tons of palm oil and fats the UK imported in 2009, it is estimated that 24% is sustainable.• It comprises: o approximately 54,500 metric tons RSPO certified (about 40,000 mt from UK refineries and 15,000 mt from European refineries) o 93,000 metric tons GreenPalm certificates purchased by UK companies
  13. 13. Sectoral progress towards sustainable palmoil consumption• Biofuels industry is covered by mandatory EU sustainability standards.• Food sector: c37% volume of palm oil and palm kernel oil supplies being sustainable. Hospitality industry lagging behind manufacturers and retailers.• Animal feed industry lagging (certified sustainable palm kernel meal has not been available for as long as certified palm oil and palm kernel oil.• Government Buying Standards do not currently mention palm oil sustainability• Significant progress made by big businesses, but much of the UK market is made up of small and medium sized enterprises.
  14. 14. Policy options and next stepsStudy is just being published today, next steps underconsideration:1.Support for key business sectors and governmentprocurers2. Voluntary agreements3. Business reporting guidance4. Government procurement5. International influencing
  15. 15. Further information 2 evidence study reports - supply chain mapping and policy options at: www.defra.gov.uk/environment/ natural/deforestation/ Sara.Eppel@defra.gsi.gov.uk or Alice.Baverstock@defra.gsi.gov.uk

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