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Malaysian firm launches first online market for sustainable palm oil
[KUALA LUMPUR] Malaysian tech firm DiBiz launched the world’s first online marketplace for sustainable palm oil on Tuesday (Mar 8) to encourage sales of products certified as environmentally compliant as buyers have avoided the more expensive goods.
The trading platform, called Trustparent Marketplace, will link palm oil buyers and sellers across the supply chain and has additional measures for traceability to ensure the industry’s commitment to “No Deforestation, No Peat and No Exploitation”.
“What this means is just like you go to Amazon to buy your products, now, every stakeholder in palm oil can come on to the Dibiz marketplace,” said DiBiz co-founder and chief executive officer U R Unnithan, who is also president of the Malaysian Biodiesel Association, told Reuters at the sidelines of an industry conference.
Critics blame the rapid expansion of palm plantations for rainforest deforestation and human rights abuses, prompting consumer boycotts against the edible oil.
But palm oil industry officials say such campaigns are hindering efforts to achieve sustainability certification and develop a market for certified sustainable palm oil (CSPO).
About 14.6 million tonnes, or 19.3 per cent of global palm oil produced is certified by the Roundtable of Sustainable Palm Oil (RSPO), which is seen as a global standard for sustainability claims.
However, planters in Indonesia and Malaysia, the world’s 2 largest palm oil producers, have complained that demand for the more expensive oil with CSPO certification is lacking despite investing millions to meet the requirements. REUTERS