GreenPalm trades 11 millionth certificate

Sustainable palm oil certificate-trading program GreenPalm recently traded its 11 millionth certificate.

GreenPalm allows manufacturers to offset their palm oil, palm kernel oil and palm kernel expeller use by purchasing GreenPalm certificates from growers, representing an equivalent volume that has been produced in line with Roundtable on Sustainable Palm Oil (RSPO) principles and criteria.

Also known as the Book & Claim supply chain option, GreenPalm directly supports RSPO-certified growers because it bypasses the supply chain, the organisation says. It enables growers to earn a premium for utilising sustainable farming methods.

“Certificate trading has a key role to play in the journey towards global palm oil sustainability. It enables all users of palm oil, regardless of their location and what derivatives they use, to play their part. It is also the only supply chain option that provides a mechanism for manufacturers and retailers to make direct payments to RSPO-certified growers,” said RSPO Secretary General Darrel Webber.

“This is particularly important for independent smallholders. In Indonesia and Malaysia, two of the world’s largest oil palm producers, smallholders account for as much as 33% of the output. However, they rarely have direct access to large multinational buyers committed to sustainable palm oil, selling instead to their local mill.

“This is underpinned by our RSPO smallholder support fund. The fund is available to support smallholders through certification; at the end of the journey is a RSPO certified premium via certificate trading.”

GreenPalm membership has grown to more than 800 registered manufacturers, retailers and certified growers since its inception in 2008. Collectively, RSPO-certified palm growers have directly earned premiums of more than $73 million over the past six years.