Trends surrounding vegetable oil & the palm oil certification system

7.Government certification systems

Currently, there is no evaluation system operated by an international certification authority that possesses higher-level objectivity for checking the appropriateness of environmental certification systems. Amidst these circumstances, Malaysia, which is the largest exporter of palm oil to Japan, is working to construct a certification scheme based on the importance of government playing an active role in certification systems. In regards to these developments, in February of this year, the JOPA conducted in onsite survey spanning from palm plantations to exporting ports.
The certification system established by the Malaysian government is called the Malaysian Sustainable Palm Oil (MSPO) scheme. The MSPO is a palm oil certification system operated by the Malaysian Palm Oil Certification Council (MPOCC), an organization established by the Malaysian government. MSPO is intended to expand the domestic market, increase added value, and build brand power by advertising the sustainability of Malaysian palm oil. It also seeks to establish and operate a national certification scheme for palm oil that will receive a high level of international trust.
Requirements for sustainability under the MSPO are provided in four specific parts. These requirements also comply with the Sustainable Development Goals (SDGs) and Food and Agricultural Business Principles (FAB Principles) of the United Nations. MSPO requirements were established based on careful examination of UN requirements. Specifically, the four parts of the MSPO are "Guidelines for Malaysian Sustainable Palm Oil," "General principles for independent smallholders," "General principles for oil palm plantations and organized smallholders," and "General principles for palm oil mills." Requirements for administrative roles include commitment to the implementation of MSPO and efforts for increased transparency/disclosure.

When formulating these requirements, the Malaysian government placed particular focus on supporting smallholders. In order to facilitate the acquisition of sustainability certification by small holders, MSPO provides technical support, financial funding, education, and storage facilities. MSPO also deploys certification auditors to assist in certification. When formulating requirements, the Malaysian government was careful not to suddenly erect insurmountable hurdles to smallholders; instead, they enable smallholders to overcome these hurdles by providing education, monitoring, providing support, and increasing the basic capability of smallholders.

MSPO requirements were launched in November 2013 and officially enacted in January 2015. MSPO requirements conform to numerous existing Malaysian laws for the management of palm oil production. Currently, MSPO requirements are not compulsory (participation in MSPO by producers is voluntary). However, Malaysian government policies show the intention to eventually require MSPO membership for Malaysian palm plantations and mills. (Currently, membership is voluntary; however, this will be transitioned to compulsory membership. Membership is scheduled for completion by December 2019.)

The supervising authority for these requirements is the Malaysian Palm Oil Board (MPOB), a government agency which supports the growth of the Malaysian palm oil industry. The Malaysian government recognizes that small- and mid-sized plantations cannot handle the increased costs associated with a privatized certification system. In resolve this issue, the Malaysian government has taken responsibility for palm oil in the country and implemented the MSPO. In this way, MSPO is a scheme of comprehensive certification by the Malaysian government. Presently, Malaysia is cooperating with Indonesia in an effort to establish MSPO as a global standard.

At the time of the onsite survey conducted by the JOPA, the following opinion was given by Dr. Kalyana Sundram, CEO of the Malaysian Palm Oil Council (MPOC): "In terms of environmental certification, the initial RSPO standards currently fulfill a major role, particularly in western nations. However, we believe that options other than RSPO should be made available in the future. Although the MSPO scheme was just launched a short time ago, it is already approaching RSPO standards. By 2019, MSPO will have been legislated as a systematic scheme for smallholders who operate outside of RSPO standards. We hope the MSPO requirements will be recognized by consumer countries in the future. To achieve this goal, we will work even harder to obtain understanding from environmental groups and national governments."

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