Friends of the Earth International: World's Biggest Palm Oil Trader Shamed
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FOR IMMEDIATE RELEASE
JULY 3, 2007
1:19 PM
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CONTACT: Friends of the Earth International
Niccolo' Sarno
Media Coordinator - Friends of the Earth International
Email: niccolo@foei.org
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World's Biggest Palm Oil Trader Shamed
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JAKARTA (INDONESIA) / AMSTERDAM (THE NETHERLANDS) - JULY 3 - Wilmar,
the world’s biggest trader in palm oil, is illegally logging rainforests,
setting forests on fire and violating the rights of local communities in
Indonesia, according to a new report published today by Friends of the
Earth Netherlands. [1]
Paul de Clerck, Corporates Campaigner at Friends of the Earth
International, said:
“This report reveals that Indonesian palm oil traded by Wilmar is
scandalous and damaging the environment. Forests are being cut and burnt
down illegally, Indonesian laws are being broken and local people are
suffering.”
Europe is one of the world’s biggest palm oil importers, with palm oil
used as an ingredient in many food products and cosmetics, and
increasingly as a biofuel. Wilmar supplies multinational companies such as
Unilever, Nestle and Cargill.
Rully Syumanda, Forest Campaigner at Friends of the Earth Indonesia /
WALHI said:
“Europe's growing demand for palm oil is leading to environmental and
social devastation”.
The palm oil industry has attempted to market the trade as environmentally
and
socially sustainable, but this report exposes these policies as hollow and
inadequate. Singapore-based multinational Wilmar is a member of the
industry-led Round Table on Sustainable Palm Oil (RSPO) and is funded by
the World Bank’s private arm as well as private European banks which have
codes of conduct against unsustainable palm oil. Rabobank and Standard
Chartered Bank are the main European financers.
Anne van Schaik of Friends of the Earth Netherlands (Milieudefensie)
said: “Rabobank apparently has a code of conduct for financing palm oil,
but absurdly this doesn’t apply to the handful of general loans that the
bank gives to Wilmar. The code of conduct is therefore meaningless –
boosting Rabobank’s image but doing nothing to protect against illegal
deforestation.”
The report demonstrates the danger of the European Union’s recent
commitment to replace 10% of its transport fuel market with biofuels by
2020.
“If the European Union continues to promote palm oil imports in order to
meet its recently-adopted 10% biofuels target, this will simply aggravate
the severe environmental and social impacts in countries like Indonesia.
The European Commission should accept that setting such a rigid target was
premature and drop it until the situation in producer countries has been
fully assessed,” de Clerck added.
Friends of the Earth Netherlands (Milieudefensie) and two Indonesian
non-profit organisations investigated three plantations of Wilmar
International Ltd. on West Kalimantan, Indonesia. Specifically, the report
reveals:
* The Indonesian authorities are suing Wilmar for intentional and
systematic illegal burning of forests to clear land for plantations
* Wilmar has violated an Indonesian law that requires approval of
the Environmental Impact Assessment before palm oil development begins
* Wilmar is clearing forest beyond its allocated borders and without
the legally required permits
* Wilmar has cleared areas of forest that local communities have
customary rights to, without even consulting them
Friends of the Earth Netherlands (Milieudefensie) has filed complaints to
the Round Table on Sustainable Palm Oil and to the private arm of the
World Bank – the International Finance Corporation.
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