Eco Labelling on Forestry and Plantation Productcase study of RSPO implementation in Indonesia palm oil industry

Andy NababanSoichi Oni

What is RSPO?The Roundtable on Sustainable Palm Oil (RSPO) is a global, multi-stakeholder initiative on sustainable palm oil. Members of RSPO (2196), and participants in its activities come from many different backgrounds, including plantation companies, processors and traders, consumer goods manufacturers and retailers of palm oil products, financial institutions, environmental NGOs and social NGOs

How many members have receivedRSPO Principles and Criteria certification?310 Certified palm oil mills60 Growers1,247 Companies with supply chain certificates2,182 Facilities with supply chain certificates

How much palm oilis certified by the RSPO globally?

12.64 million tonnes

18% of global palm oil

1. Commitment to Transparency2. Compliance with Applicable Laws and Regulations3. Commitment to Long – Term Economic and Financial

Viability4. Use of appropriate Best Practices by Growers and

Millers5. Environmental Responsibility and Conservation of

Natural Resources and Biodiversity6. Responsible Consideration of Employees and of

Individuals and Communities by Growers and Millers7. Responsible Development of New Plantings8. Commitment to Continuous Improvement in Key Areas

of Activity

RSPO Principles & Criteria (P&C) The RSPO Principles & Criteria (P&C) consists of eight principles and 43 criteria with 138 specific national indicatorsThe eight principles are :

Fact and Problem 1. Eco labelling system has been initiated by

Big Players of developed countries, which naturally leads to ‘Protectionism’ and disparity of benefit between developing countries (including Medium Small Scale Industries) and developed countries (including Big Players.)

2. Not yet established ‘one-size-fits-all’ technical standard like international standards to support the eco labelling. Meanwhile there are many private voluntary eco-labelling programmes.

ConclusionOECD paper suggests as solution:1) Encourage the franchisement of some of the better

known private eco-labels to developing country exporters;

2) Government involvement should be limited but modest linkage between government and private eco-labelling scheme to avoid Protectionism.

3) WTO conditions should be at least no worsening of current levels of market access by a) underscore a commitment to ensure transparent and non-discriminatory practices by all parties; and b) open the door to a challenge against protectionist eco-labels at the WTO.