Sustainable palm oil production can help meet growing world demand for food, especially as a cheaper alternative to other vegetable oils, which has important implications for feeding the world’s poor. In addition, the sector employs millions of rural poor and is a central economic pillar in some tropical low income countries.
IFC is aware of the negative impacts of palm oil development, particularly in Indonesia, when sound environmental and social practices are not followed. While some progress has been made in moving the palm oil industry to a more sustainable footing, we recognize that major challenges remain.
IFC believes that engagement in the palm oil sector is an important part of a strategy to address a number of key market and institutional failures in the sustainability arena while addressing important developmental challenges. IFC believes that it has the potential to help induce positive change in the industry to encourage environmentally sustainable practices and limit further deforestation.
Frequently Asked Questions
Why is IFC investing in the palm oil sector?
What is the significance of palm oil?
How does IFC ensure that its clients operate in a sustainable way?
How does IFC ensure the protection of forests, of wildlife habitat and endangered species that could potentially be affected?
How does IFC ensure there is local community support for a client’s plantation, and that Indigenous Peoples’ rights are pr...
