Oil palm remains excluded from carbon credit schemes, association urges policymakers to revisit classification

Oil palm plantation (file photo)

By DayakDaily Team

KUCHING, Sept 24: The Sarawak Oil Palm Plantation Owners Association (SOPPOA) has called on policymakers to reassess the classification of oil palm plantations as oil palm is not classified as a ‘tree’ under international carbon trading frameworks.

Such plantations play a vital role in carbon sequestration, yet remain excluded from carbon credit schemes.

SOPPOA chairman Eric Kiu highlighted that this exclusion overlooks the plantations’ ability to absorb and store carbon dioxide over extended periods.

“As a result, plantation owners are denied access to carbon trading markets, missing out on a potential funding avenue for further sustainability efforts in the industry,” he said in a statement today.

Kiu stressed the industry’s push for oil palm to be recognised as a carbon-sequestering plant, urging policymakers to revisit this classification.

His comments followed a meeting with Deputy Minister of Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, yesterday (Sept 23), where several key issues affecting the palm oil supply chain were discussed.

Kiu also cited scientific data demonstrating oil palm plantations’ ability to capture significant amounts of atmospheric carbon, thus contributing to climate mitigation.

“By acknowledging this, oil palm plantations could be integrated into carbon credit markets, offering the sector new revenue streams.

“This would not only incentivise more sustainable practices but also position the industry as an active participant in global carbon reduction efforts,” he added.

Also present at the meeting were SOPPOA’s chief executive officer Dr Felix Moh Mee Ho and other members of the association. — DayakDaily