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30

demand for palm oil is expected to double this area by 2020,

which implies the annual conversion of another 30 000 km2

of forest.

The ongoing conversion of tropical rainforest for biofuel

production has been a cause of concern for conservationists

(Buckland 2005). But new analysis shows that CO

2

emis-

sions from conversion of peat swamp forest in particular are

far greater than gains from substitution of fossil fuels with

palm oil (Hooijer

et al.

2006). The land is drained, the trees

are cut, and the peat soil that has built up over thousands of

years breaks down. When fire used to clear forests for biofuel

spreads into additional forest land, even more CO

2

is released.

While fire fighting and emergency measures are helpful in

the short-term, long-term change in the management of peat-

lands in Indonesia is required if the CO

2

is to remain stored

in peatlands.

Ironically, in the desire to cut CO

2

emissions, western mar-

kets are driving ecosystem destruction and producing vast and

significant CO

2

emissions through forest burning and peat

swamp drainage. The most effective measure to achieve this

is conservation of remaining peatland forests, alongside reha-

bilitation of degraded peatlands and improved management of

plantations and agricultural areas (Hooijer

et al.

2006).

There are signs that the world is waking up to this issue. While

no certification mechanism yet exists to identify sustainably-

produced palm oil, the Roundtable on Sustainable Palm Oil

has been set up to bring the commercial sector together with

conservation organisations, civil society groups, governments

and other stakeholders. So far it has devised Principles and Cri-

teria for sustainable palm oil production (RSPO 2006), and a

broad code of conduct for members. In late 2006, there were

some signs of response in the energy industry. The Dutch pow-

er company Essent has pledged to stop using palm oil (Wet-

lands International 2006), and one British power company in

the UK that was testing the use of palm oil has dropped its

plans. But the legal and illegal spread of oil palm plantations,

and development of biodiesel refineries, continues.