Greens Warn World Bank Over Palm Oil Funding
Eny Wulandari | September 05, 2010
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394744As Greenpeace sympatiser, I am also pro palm oil. Not for the destructive way palm is currently cultivated and oil being produced. But for a way that it can be produced sustainably, balancing development with our green aspirations. The only serious international public institution that can facilitate leadership on this is the World Bank Group. Nobody else at this particular stage i.e. in which we must make a transition from radicalism (whether activist-NGO type destructive people or those destroying the environment) to green growth. Palm Oil is the only high productive oil from all vegetable oils on this planet. Change the humans beings, investment conditions, fight corruption, support international experts to work closely with leading private sector companies and their leaders, and you may be able to create a balanced development in the sector. AVoid popular talks, and realize that if the 350 million people in Europe don't use palm oil, that 4 billion other people of which approximately 2.5 billion in China and India (the largest markets for palm oil in the world) will continue using it! I am not even counting Indonesia as the 3rd largest user of palm oil, assuming that NGOs may be able to really change the minds of 230 million Indonesians. So, let us support creative thinkers, honest politicians, green-growth focused NGOs, and wise business leaders facilitated by the World Bank Group to build up understanding, and demonstrate positive actions on the ground. Palm Oil is a fantastic oil, the best producer, and please don't just kill it with short sighted attitudes of wrong activism!
A major problem is that these palm oil companies are allowed to seek private funding for their forest destroying operations. So if the world bank continue their ban on financing such operations, forest destruction will continue, albeit at an even worse pace, as private companies are only out for profit, and care nothing for critically endangered wildlife and global warming.
There are a few options to solve this drastic problem, some more favourable than others. The world bank could reduce its environmental standards to lure the palm oil industry. But of course, this would not solve the serious problem of biodiverSity loss and climate change, but it would create more short term jobs. I want to emphasize 'short term', because when global warming continues unchecked, the warmer temperatures will be unfavourable for growing palm oil and thus, growing the crop would be impossible and yields would decline. This could happen within 30 years if we continue to pollute and destroy the planet as we are doing today.
The second option involves you, the general public. You need to be socially and environmentally responsible for every action that you take. Don't support these multinational companies in destroying the planet by purchasing their products. Sign up to greenpeace's online activist website to receive information from their side of the story. By educating yourself about the numerous pressing environmental problems, there is a chance that you may change your habits and be a more responsible citizen.
The third option is not a solution, its a catastrophe. We allow these palm oil companies to continue business as usual. In the short term, jobs will increase. However, this will also result in rapid increase in greenhouse gases, accelerated global warming, which in turn will cause crops to fail, massive flooding, drought, loss of corals leading to a collapse in the marine ecosystem (i.e. NO FISH) and rapid decline in terrestrial wildlife. All of these issue would of course lead to conflict and social collapse! Yippie!
What option would your children choose?
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Jakarta. Environmental groups Greenpeace and Sawit Watch have called on the World Bank to extend its international suspension of financing for the palm oil sector unless producers meet environmental criteria.
Jefri Saragih, head of Sawit’s campaign in Indonesia, said on Sunday that the World Bank must provide palm oil makers with clear guidelines on what they must do to reduce their industry’s impact on global warming.
Jefri delivered the statement in response to a World Bank meeting held in Frankfurt on Tuesday and Wednesday.
During the gathering, the World Bank’s International Finance Corporation said it would promote and finance environmentally and socially sustainable palm oil.
It said it would invest in palm oil production if producers meet international certification or provide a solid schedule for achieving sustainability.
Bustar Maitar, a local campaigner for Greenpeace, also urged the World Bank to make financing dependant on palm oil producers prioritizing environmental concerns.
Fadhil Hasan, executive director of the Indonesian Palm Oil Producers Association (Gapki), said on Sunday that his office would continue giving feedback to the World Bank until it made a decision on whether to resume funding the sector.
“We have yet to have any final response on the World Bank’s strategy at the moment. The World Bank will hold another meeting in October,” Fadhil said.
Fadhil said Gapki members would not pin their hopes on the World Bank, because they have been able to rely on commercial loans to fund their operations.
However, he said the international body should not make financing dependent on meeting environmental criteria, saying that the jobs created by palm oil producers should be taken into account.
Environmental groups have been making a stir with campaigns accusing palm oil firms of illegal deforestation, with Sinar Mas Group being boycotted by some of its top buyers.
On Thursday, US fast food giant Burger King said it would stop buying palm oil from the firm and its subsidiaries after Greenpeace mounted a successful campaign against Sinar Mas’s land-clearing practices.
Unilever and Nestle earlier dropped the supplier over the criticism.
Since 1965, the World Bank has channeled nearly $2 billion for 45 projects in the palm oil sector in 12 nations across Africa, Latin America and Southeast Asia.
Indonesia has been a major focus of the financing, receiving $618.8 million of the total funding. The World Bank suspended the financing in September 2009 over environmental concerns.
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