A Deep Dive into Chinese Palm Oil: Recommendations for More Sustainable Production

In their recent case study, Meridian staff members Katina Gehman and Elliott Davis, along with Senior Fellow John Ehrmann, shared insights on their work to map China’s palm oil production for increased sustainability. 

The supply chain map – built of seven separate but interrelated maps – highlights current dynamics in China, key leverage points and opportunities, and more. 

The report not only shares recommendations – it breaks down each of the seven maps in-depth, adding valuable background information on economic factors and policy changes.

A brief summary of their recommendations can be found below:

• Consumer Awareness: Increase awareness about unsustainable palm oil among consumers. Focus on instant noodle industry and other consumer products that use palm oil derivatives. Promote certified sustainable palm oil – not just “palm oil free” products.
• Financial Policy: Create green financial regulations, building on China’s existing, strong domestic forest management policies. In commercial law, include deforestation in due diligence when investing in a company.
• Domestic Production: Consider palm oil cultivation on marginal lands in China to reduce deforestation pressure in Southeast Asia while still meeting the rising demand. Export Chinese palm oil varieties that are healthy, high-yield, and less processing-intensive. 
• Biofuel: Employ biofuel from used cooking oil to serve as a transition fuel to carbon-neutral transportation through domestic production/consumption in China and Indonesia.
• Production Cycle: Recycle biomass and incorporate regenerative agriculture practices. Prioritize the well-being of smallholders by addressing grievances and reducing barriers to sustainability certifications. Improve the traceability of palm oil supply chains through digital crowdsourcing.
• Partnerships: Form strategic partnerships between China, Indonesia, and Malaysia with shared goals around improving smallholder livelihoods, producing and using biofuel from used cooking oil, and promoting deforestation-free finance. Acknowledge producer country efforts and accomplishments using positive and politically sensitive messaging about palm oil.