01/08/2012 (Bangkok Post) - Thailand is being urged to adopt the Roundtable on Sustainable Palm Oil (RSPO) standard for the palm oil and biofuel industries, an initiative aimed at promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.

Sanin Triyanond, the director of Thailand's largest palm oil producer, Patum Vegetable Oil Co (PVO), said the new standard will play a vital role in the coming years, as palm oil and biodiesel traders and users insist on the certification.

Pathum Vegetable Oil is the only Thai company to be certified by the RSPO for responsible oil palm plantation management.

The certification, awarded by the RSPO-approved SGS Thailand Co, ensures the company's business has complied with standards for sustainable palm oil production.

Demand for sustainable growth has increased along with products that support communities and the environment, said Mr Sanin.

The RSPO was formed in 2004 as a joint initiative by the World Wildlife Fund and companies in the palm oil sector, food companies, banks and society members.

Only 14 companies had been certified by RSPO in 2006, rising to 500 units in 2010.

Global consumption of palm oil has expanded an average of 7.6% a year since 2003 to about 45 million tonnes in 2010. The commodity is used in making edible oil and biofuel, as well as ingredients in several industrial goods.

PVO signed a memorandum of understanding yesterday with Shell Co in Thailand and 80 palm oil crushing mills in a bid to assist with RSPO certification.

Thailand has 80 crushing mills, nearly 20 of which are cooking oil producers, and 10 biodiesel producers.

More than 200,000 houses nationwide are engaged in growing palm oil trees, which share more than 70% of total palm oil production.

Palm oil growers and crushing mills in Chumphon, Surat Thani, Krabi and Trang were chosen as pilot projects for the scheme.

He said the buyers of palm oil, biodiesel and oleochemicals are expected to ask for the certificate from sellers in 2015.

"Our clients from Europe will require not only high quality products but also RSPO certification in the near future," said Mr Sanin.