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Writer's pictureJacqui King

The Global Impact of Palm Oil: An Environmental and Wildlife Crisis



If you've ever checked the label of a soap bar, a bag of chips, or even a bottle of shampoo, chances are you've come across the ingredient "palm oil." It’s everywhere: from food products to cosmetics, cleaning supplies, and even biodiesel. It’s cheap, versatile, and has a long shelf life, which is why it’s found in so many of the everyday products we use. But, while palm oil seems harmless enough on the surface, its widespread use is wreaking havoc on the environment truly having a global impact on virgin landscapes—and on the wildlife that inhabits it.


So, What’s the Deal with Palm Oil?


Palm oil is a type of vegetable oil that comes from the fruit of the oil palm tree (*Elaeis guineensis*). It’s grown in tropical regions, mainly in Southeast Asia and parts of Africa. The fruit of the oil palm tree produces two types of oils: crude palm oil, which is extracted from the flesh of the fruit, and palm kernel oil, which is extracted from the seed inside the fruit.



Palm trees with palm fruits on a palm plantation
Fruiting Palm trees on a palm plantation


What makes palm oil so attractive to the food and manufacturing industries is that it’s cheap to produce and has a high yield per hectare compared to other vegetable oils. Palm oil accounts for approximately 35% of global vegetable oil production, even though it’s grown on just 10% of the world’s total oil crop land. That’s an incredibly efficient crop. And it’s found in a staggering variety of products—everything from food products like margarine, ice cream, and baked goods, to cleaning agents, cosmetics, and even biofuels.


Palm Oil’s Widespread Use in Soap Making


You might not realize it, but palm oil plays a significant role in the soap-making industry. In fact, it's one of the most common ingredients in both commercial and artisanal soaps. The oil helps create a rich lather and gives soap its smooth, moisturizing qualities. Palm oil is often used alongside other oils like coconut oil or olive oil to create soap, and it contributes to the "hardness" of the bar, making it less likely to dissolve quickly in water.


According to the World Wildlife Fund (WWF), the soap industry alone accounts for about 30% of global palm oil consumption. Given how much soap is used around the world—think of hotel toiletries, personal hygiene products, and cleaning products—it’s easy to see how a single industry can have such a massive impact on palm oil demand.


But the widespread use of palm oil in everyday products also means that demand for the crop is growing at an alarming rate, and this is where things start to get problematic, especially for the environment.


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The Deforestation Crisis


One of the most significant environmental impacts of palm oil production is deforestation. Palm oil plantations have been a major driver of tropical deforestation in countries like Indonesia and Malaysia, which together produce about 85% of the world’s palm oil. Large areas of rainforest are cleared to make way for oil palm plantations, which displaces both wildlife and indigenous communities, disrupts local ecosystems, and accelerates climate change.


To make matters worse, much of this deforestation is done through slash-and-burn methods, where forests are deliberately set on fire to clear land quickly. These fires are often uncontrolled and can spread across vast areas, creating devastating wildfires. The practice has become so common that in recent years, Southeast Asia has been plagued by seasonal "haze"—a thick, toxic smog created by the smoke from burning forests.


Cleared area of rainforest now planted up with palm trees
Cleared area of rainforest now planted up with palm trees

In Indonesia, for example, nearly 2 million hectares of land are cleared each year for palm oil plantations. That’s an area the size of Kuwait! Similarly, in Malaysia, palm oil expansion has contributed to the destruction of huge swaths of the country’s rainforests.


The environmental toll of deforestation is staggering. Tropical rainforests, which act as “carbon sinks,” help absorb carbon dioxide from the atmosphere. When these forests are destroyed, not only is that carbon stored in trees released back into the atmosphere, but the land itself becomes less able to absorb CO2 in the future. This contributes significantly to global climate change.


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Impact on Wildlife: A Tragic Loss of Biodiversity


Perhaps the most heart breaking consequence of palm oil production is its impact on wildlife. The rainforests that are being destroyed to make way for palm oil plantations are home to some of the world’s most endangered species.


- Orangutans Both the Bornean and Sumatran orangutans are critically endangered, and their populations have been devastated by the loss of their natural habitat to palm oil plantations. The deforestation in Malaysia and Indonesia has resulted in habitat fragmentation, making it difficult for orangutans to find food, shelter, and mates. In the past 60 years, orangutan populations have declined by more than 50%.


A mother orangutan and her infant
A mother orangutan and her infant

-Sumatran Tigers. The Sumatran tiger, one of the world’s rarest big cats, is also under threat from palm oil plantations. As the palm oil industry pushes further into the Sumatran rainforest, these tigers find themselves without the space and prey they need to survive.


-Rhinoceros In Borneo, the Bornean rhinoceros has seen a dramatic decrease in population due to habitat loss from palm oil plantations. As their habitat shrinks, rhinos are forced into smaller, fragmented areas, which lowers their chances of survival.


- Elephants In places like Sumatra, elephants are coming into conflict with palm oil plantations as their migratory paths and food sources are destroyed. Some have even been killed for encroaching on plantation land.


It’s not just the animals that suffer. Indigenous communities who have lived sustainably in these forests for generations are also being displaced by the relentless spread of palm oil plantations. In many cases, local people are forced off their ancestral land, and they lose not only their homes but their livelihoods.


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Can Palm Oil Production Be Sustainable?


The short answer is: yes, but it’s complicated. The key to mitigating the environmental and social problems tied to palm oil lies in adopting more sustainable production practices. In 2004, the Roundtable on Sustainable Palm Oil (RSPO) was formed with the goal of promoting the growth and use of sustainable palm oil. The RSPO sets standards for palm oil production, aiming to reduce deforestation, protect biodiversity, and improve working conditions for palm oil workers.


Palm oil that is certified by the RSPO is supposed to come from plantations that have been independently audited and meet specific environmental and social criteria. These include no deforestation in high conservation value areas, protection of wildlife habitats, and fair wages for workers.


However, there are many challenges with this system. The RSPO only covers about 20% of global palm oil production, and critics argue that even certified palm oil still contributes to environmental damage in some cases. Some plantations, for example, have been found to still engage in illegal logging or clear-cutting in protected areas, and palm oil production can still lead to harmful greenhouse gas emissions if proper safeguards aren’t in place.


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What Can We Do About It?


As consumers, we have more power than we realize. While it might seem difficult to avoid palm oil entirely (it’s in everything), there are a few steps we can take to make a difference.


1. Look for RSPO Certification: One of the easiest ways to support more sustainable palm oil is to choose products with the RSPO logo. This helps create demand for sustainable palm oil and supports farmers who follow responsible practices.


2. Buy from Companies with Strong Sustainability Commitments. Some companies are going beyond RSPO certification and making their own commitments to environmental and social responsibility. Look for brands that are transparent about their palm oil supply chains and are committed to reducing their environmental footprint.


3. Minimize Consumption of Palm Oil: While it’s not always possible to avoid palm oil altogether, you can reduce your consumption by being mindful of what you buy. Check ingredient labels, especially for products like packaged snacks, soaps, and personal care products. There are also palm oil-free alternatives available in many product categories.


4. Advocate for Change: Support organizations that are working to protect rainforests, wildlife, and indigenous communities. You can also get involved in campaigns aimed at making palm oil production more sustainable or pushing for stricter regulations on deforestation and land use.


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Further Reading:


- “The Palm Oil Miracle” by Dr. Michael Klaper – A deep dive into the pros and cons of palm oil from a nutritional and environmental perspective.

-“The Burning Season: The Murder of Chico Mendes and the Fight for the Amazon Rainforest” by Andrew Revkin – While this book focuses on Amazon deforestation, it provides great context about global deforestation trends.

- World Wildlife Fund (WWF) – The WWF has a wealth of information about the impact of palm oil production on wildlife and the environment, including case studies and reports on the sustainability of palm oil.


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Palm oil might seem like just another ingredient in your favourite products, but its production has far-reaching consequences for the planet. The next time you pick up a bar of soap or a packet of chips, take a moment to think about where that palm oil comes from and how it got there. We all have a role to play in reducing the environmental damage caused by palm oil production—and it starts with making informed choices.

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