Can ‘western’ initiatives for sustainable supply chains save tropical peatlands? Evidence from the Indonesian palm oil sector
Christoph Kubitza, Sandra Eckert, Jann Lay
Despite the numerous initiatives for sustainable agricultural supply chains in high-income countries (HIC), there is little evidence on whether these initiatives effectively reduce environmental degradation in tropical cultivation areas. In our study, we compare patterns in oil palm planting and deforestation on peatlands in Indonesia between HIC investments, that are more frequently involved in sustainability initiatives, with domestic investments or those by neighboring low- and middle-income countries (LMIC). Our dataset comprises 386 concessions in Kalimantan and Papua, their investment structure, annual maps on forest loss and oil palm cultivation, and spatial maps on peatlands. Our results show a divergence in production practices after 2011, with actors tied to HIC reducing their environmental degradation while actors from LMIC kept their practices unchanged. While this is good news in terms of the effectiveness of ‘western’ initiatives, companies from HIC have only a limited market share compared to companies from LMIC.
Event: World Bank Land Conference 2024 - Washington
Only personal, non-commercial use of this document is allowed.