Presenter: Stephanie March
Speakers: Stephen Campbell, Greenpeace; Tim Wilson, Australian Institute of Public Affairs;

Australia; Indonesia; Malaysia; Industry; Community and Society

MARCH: Environmental groups have long linked the increasing global demand for palm oil as a cause of massive deforestation in countries like Indonesia and Malaysia.

From their claims have spawned campaigns calling for people in developed countries to stop buying products made using palm oil.

But Tim Wilson from the Australian Institute of Public Affairs says there is new evidence boycotting palm oil products will do more harm to the region than good.

WILSON: There will be a direct impact on the poor, the 40 per cent or more of small holder palm oil plantation holders in Indonesia and Malaysia who will lose their livelihoods.

MARCH: More than a million people in Indonesia and Malaysia make their living from the palm oil industry.

Greenpeace campaign director Stephen Campbell says clearing rainforest for palm oil plantations is a major contributing factor to climate change.

CAMPBELL: You have to understand that forest dwelling people are poor, they do have rights to development but climate change is one of those threats that could not only impede development goals, but their very existence.

MARCH: Tim Wilson says while palm oil yields have increased in recent years, that is mainly due to improved agriculture practices not clearing more land.

WILSON: There is a large amount of deforestation in Indonesia and Malaysia but less than 30 per cent is a consequence of anything directly associated with the palm oil industry.

MARCH: In recent years companies involved in the palm oil industry have taken steps to make their practices more sustainable.

But environment groups say the initiatives standards are too weak to have a significant impact on reducing environmental degradation.

Tim Wilson agrees the efforts are not perfect.

WILSON: A lot of the efforts that have been made by the companies started a few years ago but there are teething problems, they're always are, certification systems like the round table for sustainable palm oil. But the effort and the measures are very clear and they have to be partnered of course with efforts by government.

MARCH: The Malaysian government recently announced a plan to ban companies from planting palm oil crops near rivers on Borneo Island.

Stephen Campbell from Greenpeace Australia says Indonesia is also recognising that deforestation is a problem.

CAMPBELL: Even the Indonesian President is calling for help to slow it down to stop deforestation so that Indonesia can get its greenhouse gas emissions under control.

MARCH: But Tim Wilson from the Institute of Public Affairs says taking away people's livelihood by boycotting palm oil products, will take away their ability to address environmental problems.

WILSON: In order to be able to afford a healthy environment you actually need to have the financial resources available to you to make sure that you can clean up your act and you can take appropriate measures to protect your environment. If you are poor it is understandable the first action you are going to take is to make sure than you can feed your family for the next few days before you worry about environmental concerns.

MARCH: Stephen Campbell from Greenpeace Australia says to alleviate deforestation without increasing poverty, the international community is going to have to help fund people to change their income streams.

CAMPBELL: If the developed world really are concerned about climate change and want to do something positive about it they are going to have to invest billions of dollars in preventing deforestation through public funding and that is really the key issue, it's not about supporting industries that are destroying the forest now.

MARCH: Greenpeace hopes developed countries will commit to contributing to a billion dollar forest fund to stop deforestation, during international climate change negotiations later this year. THE END.