Soppoa discusses key palm oil industry challenges with deputy minister

KUCHING: The Sarawak Oil Palm Plantation Owners Association (SOPPOA) held a key meeting with Deputy Minister for Energy and Environmental Sustainability, Datuk Dr Hazland Abang Hipni, to discuss critical challenges facing the palm oil industry.

The discussion centred on waste management and the exclusion of oil palm plantations from carbon credit markets.

Led by Soppoa chairman Eric Kiu Kwong Seng and CEO Dr Felix Moh Mee Ho, the delegation highlighted the industry’s appeal for an extension of the incineration process that converts empty fruit bunches (EFB) into organic fertilizer.

The Department of Environment (DOE) had previously banned this process due to concerns over smoke emissions.

“The conversion of EFB into organic fertilizer is essential for sustainable waste management in the palm oil sector. While we understand DOE’s concerns, we are open to exploring new technologies such as more efficient incinerators and smoke-capture systems to mitigate environmental impacts,” said Kiu.

Kiu stressed that the incineration process is crucial to the palm oil industry’s circular economy, contributing to sustainable agricultural practices while managing waste effectively.

The meeting also touched on the industry’s exclusion from international carbon credit markets due to the classification of oil palm as a non-tree crop. Despite their ability to sequester carbon, oil palm plantations are not currently eligible for carbon credits.

Soppoa urged policymakers to reconsider this classification, noting the plantations’ capacity to absorb carbon dioxide and their potential role in climate mitigation.

“Recognising oil palm plantations as carbon sequestering could unlock new revenue streams for the industry, allowing us to invest further in sustainability,” Kiu added.

Dr Hazland acknowledged the concerns and assured the ministry’s commitment to reviewing these issues while balancing environmental and economic interests.