Sustainability Governance Framework of Malaysia-China Palm Oil Supply Chain Under the Green Belt and Road Initiative

Research Grant, 2023

Abstract

Palm oil is widely consumed due to its economic potential which can deliver more production from less land, but it has caused environmental disputes, such as deforestation, biodiversity destruction and human rights issues. Malaysia is the second-largest producer and exporter of palm oil in the world, while China is the second-largest importer of palm oil. However, emerging economies like China have little or no demand for certified sustainable palm oil (CSPO). The Roundtable on Sustainable Palm Oil (RSPO) certification system is followed by Malaysia to achieve sustainable palm oil production through its Malaysian Sustainable Palm Oil (MSPO) programme. Still, it is facing pressures from foreign governments, international organisations, NGOs and others, which are also present in China. The impact of audits of palm oil sustainability in China is exerted only in a limited region. This research project aims to identify the issues and challenges in implementing sustainable palm oil within the Malaysia-China supply chain; to analyse rules, roles and organisations taking place for palm oil sustainability governance within the Malaysia-China supply chain; and to formulate a sustainability governance framework for the Malaysia-China palm oil supply chain under the Green Belt Road Initiative. The research methodology involves official documents collation, document content analysis, interviews with stakeholders, thematic analysis, focus group discussion and framework formulation. The expected outcome is that the sustainability governance framework can guide the stakeholders of Malaysia and China in better governing the palm oil supply chain under the Green Belt and Road Initiative through the evolutionary governance approach which will enhance the sustainable palm oil trade between these two countries. The research project's significance is that it will help to improve the sustainability of the palm oil industry, contributing to the conservation of biodiversity and the protection of human rights.

Project Leader