At a time when the epidemic is still raging, topics such as World Environment Day and ecosystem reconstruction may be a bit clichéd. However, the global outbreak of the new coronavirus reminds us that the link between human health and nature is always closely connected.

In recent years, research reports on global biodiversity have continued to sound the alarm, and the threats faced by animal and plant communities have also directly challenged the safety of human life. As more and more countries join the ranks of reducing carbon emissions and ecological footprint, the important position of Chinese consumers in protecting the environment has become increasingly prominent.

China is the most populous country in the world, with a rapidly growing middle class, and China's influence in the global market is increasing day by day. As a major palm oil importer, China will further play an important role in building a global green supply chain and sustainable palm oil in the future.

On April 22, President Xi Jinping attended the leaders’ climate summit and delivered an important speech entitled "Together to Build a Community of Human and Natural Life." Xi Jinping pointed out that as a participant, contributor, and leader in the construction of global ecological civilization, China firmly practices multilateralism and strives to promote the construction of a fair, reasonable, and win-win global environmental governance system. China will host the 15th Conference of the Parties to the Convention on Biological Diversity in October this year, and work with all parties to promote global biodiversity governance to a new level.

China's growing demand for palm oil

China is the world's largest importer of edible oil and a major importer of palm oil.

In 2019, China imported 8.48 million tons of palm oil and related products with a total value of US$4.77 billion [1] (accounting for about 10% of global imports, second only to India). In 2020, China imported 7.2 million tons of palm oil and related products with a total value of 4.72 billion US dollars [2]. In the past two decades, domestic palm oil consumption has risen by 240%. China's palm oil consumption is second only to soybean oil and is the second largest vegetable oil consumer product. In order to meet the needs of the domestic market, China began to amend the "Interim Measures for the Administration of Import Tariff Quotas for Agricultural Products" in August 2019, abolish the management of import quotas for palm oil, and formally issued the revised "Interim Measures for the Administration of Import Tariff Quotas for Agricultural Products" in May of this year. "[3].

The rapid growth of China's food industry and oleochemical industry will also further drive the demand for palm oil. At present, 70% of China's palm oil is used in the food industry, including frying fats (instant noodles), baking fats and candy fats, etc.; the rest is used in non-food industries, such as cosmetics, surfactants, and detergents.

Chinese demand continues to shape the sustainable palm oil value chain

Malaysia limits the land use area for palm oil cultivation to 6.5 million hectares[4]. Indonesia announced the suspension of the development of new palm oil and is reviewing the previously issued palm oil production license to ensure that palm oil production will not have an excessive impact on the environment [5].

In order to ensure sustainable palm oil production, Malaysia and Indonesia have respectively formulated compulsory certification agreements-Malaysian Sustainable Palm Oil (MSPO) [6] and Indonesia Sustainable Palm Oil (ISPO) [7] to regulate palm oil Suppliers so as to meet the requirements of sustainable development.

These certification agreements have also been recognized by China. In October 2020, State Councilor and Minister of Foreign Affairs of the People’s Republic of China Wang Yi and Malaysian Foreign Minister Hishammuddin issued a joint press statement stating that the two sides recognized the significance and importance of commodity trade, especially palm oil trade, and agreed to comply with Malaysia’s sustainable palm oil trade. Under the certification and China's green food certification standards, we will continue to promote cooperation in the sustainable development of the palm oil industry. China agrees to encourage companies to expand imports of Malaysian palm oil and other products in accordance with market rules. The two parties agreed to discuss the development of tripartite cooperation between horse palm oil and palm oil products[8].

In a report titled "Opportunities for the Sustainable Development of the China-Indonesia Palm Oil Value Chain" released by the United Nations Development Programme in March 2020, it was specifically pointed out that the global palm oil farmland accounted for 10% of oilseed production, but accounted for 35% of global vegetable oil production, of which palm oil production is 6 to 10 times that of other vegetable oil crops (soybean planting requires 40% of the world’s oilseed production farmland, but the output only accounts for 22% of the global vegetable oil production)[9] .

In addition, with the improvement of palm oil production management methods, the upgrading of planting materials and genetic technology, and the coordination between economic goals and environmental goals, the output of palm oil will also be greatly increased.