23/09/05 KUALA LUMPUR, (Bernama) -- The Criteria Working Group (CWG) underthe Roundtable for Sustainable Palm Oil (RSPO) initiative has finalisedthe principles and criteria (P&C) for verifying sustainable palm oilproduction worldwide.

A total of eight principles and 40 criteria are being developed, the firstof its kind in the world for a commodity.

RSPO president Jan Kees Vis said that the final set of P&C would be tabledat the third Roundtable and RSPO General Assembly in Singapore thisNovember for endorsement.

Speaking to reporters after concluding a CWG meeting here Friday, he saidthat the P&C encompassed legal, economic, technical, environmental andsocial aspects of palm oil production.

He said that the P&C was intended to be globally applicable, coveringexisting and new plantations as well as dealing with sustainability issuesincluding environmental and social impacts of those involved in the wholesupply chain of palm oil production.

For example, issues like haze are covered through criteria thatspecifically covers the use of fires as well as land clearing methods.Other examples include the use of pesticides and the types of forest forconversion into oil palm plantation.

Monitoring of compliance would be done through verifications andcertifications of products.

Vis said that once the F&P had been agreed upon, there would be a two-yeartrial run for its implementation, involving 28 plantation companiesworldwide.

The F&P will then be reviewed to consider the specifics and thereafter,the review will be done every five years.

Meanwhile, the RSPO initiative, whose members include plantationcompanies, processors and retailers of palm products,non-governmental-organisations, bankers and consumers, comes into thepicture following concerns in the market about the sustainability of palmoil.

"As there are demand for such oil, those who implemented the criteria willbecome better companies. Not only will they have more access to marketsbut efficiency will improve as they pay attention to the environmental andsocial impact of their operations," Vis said.

As for concern that such certification of products would escalate tobecome a form of trade barrier, he said the concern was real.

"However, if you take notice (in terms) of perception of your productsinto the market, it will give you an advantage when you better understandhow the demand side of the market works," he said.

-- BERNAMA