02/08/2011 (Business Green) - The Malaysian government is reportedly developing its own certification scheme for palm oil plantations that meet environment standards and do not contribute to deforestation, potentially drawing the country into conflict with the existing certification scheme operated by the Roundtable on Sustainable Palm Oil (RSPO).

According to reports in Malaysia's Business Times later picked up by news agency Reuters, Malaysian Commodities Minister Bernard Dompok said that the government is at the "preliminary stage" of developing its own sustainability standard for palm oil producers

Dompok explained that the plan is moving forward after the NGO and industry-backed RSPO reportedly accused Malaysian palm oil producer IOI Corp of violating its certification standards, and suspended plans to certify its plantations.

"We will go ahead [with plans for a new certification scheme] because the RSPO keeps on changing its goal posts on how to produce sustainable palm oil," said Dompok.

The news is likely to spark disquiet among green groups, many of which have supported the RSPO and fear that rival certification schemes will impose less demanding standards on plantations accused of fuelling deforestation in countries such as Malaysia and Indonesia.

Both Malaysia and Indonesia are now working on their own standards following reports that sales of RSPO-approved palm oil have been slower than expected.

The palm oil industry signalled that the new Malaysian government standard would still require plantations to protect wildlife, such as the orang utan, and avoid deforestation.

However, green groups are likely to remain concerned that the emergence of competitive standards could make it harder to ensure that palm oil has been sourced from plantations that adhere to demanding environmental standards.