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Incentive: Certified Palm Oil

PALM OIL

Project POTICO is designed to have developers establish new oil palm plantations on degraded lands—land that was deforested years ago. Palm oil from these plantations would be certified by the Roundtable on Sustainable Palm Oil.


USES


Palm oil, derived from the fruit of oil palm trees, is used as a cooking oil and has recently become popular for use in snack foods. A versatile oil, it is used in consumer products such as soaps and cosmetics, and also to create biofuel.

FOOD:

Cooking oil and margarines

Confectionaries such as
ice cream, chocolates, and cakes

Snacks such as
cookies and chips

Infant nutrition fats
INDUSTRIAL:

Personal care products
such as shampoo, soaps, and cosmetics

Household products such as
candles and cleaning products

Energy such as biodiesel

Animal feed for livestock

SOURCE: IFC BACP 2008

DEMAND

International demand for palm oil is a primary driver of deforestation in Indonesia.

Oil palm plantations have skyrocketed over the past 20 years in Indonesia, from 600,000 hectares in 1985 to more than 6 million hectares in 2007. This is a growth from 1.5 million acres in 1985 to 15 million acres in 2007.



Indonesia is now the world's number one producer of palm oil, with 44 percent of the world's production.

The United Nations Food and Agriculture Organization projects that acreage will likely at least double by 2020 to meet growing world demand for palm oil.