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RSPO AND ISPO FRAMEWORK
ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO)
The RSPO is a Non-Governmental Organisation (NGO) formed by
palm oil producers, end-users and other NGOs and that establishes
the principles and criteria for the sustainable production of palm
oil. It represents the highest environmental and social standards
attainable in the palm oil industry.
For an organisation to be RSPO-certified, its oil palm plantations
and mills must fulfil 39 criteria and 139 indicators grouped under
eight principles that cover transparency, compliance to laws
and regulations, long term economic and financial viability, best
practices, environmental and community responsibility, responsible
development of new plantings and continuous improvements.
There are also four different RSPO supply chain mechanisms
defining the traceability of sustainable palm oil, with “Identity
Preserved” being the highest traceability and “Book and Claim”,
the lowest.
DEMAND FOR RSPO-CERTIFIED PALM OIL
The demand for sustainable palm oil originated in Europe, where
food manufacturing giants, like Unilever, commit to buying only
from sustainable palm oil sources by 2020. India and China, two
of the world’s largest buyers of palm oil, are also increasingly
looking for sustainable sources that do not destroy peatland and
rainforests during production.
INDONESIA SUSTAINABLE PALM OIL (ISPO)
The ISPO is a government effort led by the Indonesian Ministry of
Agriculture to create a system for sustainable palm oil production
and certification that will enhance Indonesia’s competitiveness in
the global palm oil market and reduce GHG emissions from oil
palm plantations and operations.
KEY DIFFERENCE BETWEEN RSPO AND ISPO
The main difference between RSPO and ISPO is in their legality. The
RSPO is a voluntary organisation with global representation, while
the ISPO is regulated by the Indonesian Ministry of Agriculture,
State Ministry for the Environment, Ministry of Forestry and
National Land Agency.
As a government certification scheme, the ISPO is legally binding
on all oil palm producers in Indonesia. The definitions in the
ISPO are derived from AMDAL, the national environmental
assessment platform, and other government regulations. Plantation
companies are not allowed to plant on protected areas designed
by the Indonesia government. In addition, RSPO prohibits the
companies from planting on HCV areas and primary forests. The
ISPO is satisfied with the assurance from the plantation owners
that their lands are free from conflict with the local community
and district smallholders.
Many plantation owners are still trying to comprehend the full
extent of involvement required by the ISPO framework. While the
ISPO is still evolving, it is nevertheless an important framework
for sustainable palm oil in Indonesia.
Both RSPO and ISPO require audit by an independent party
for certification.
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