Indonesia Can Meet Biofuel Goals Without Palm Oil Expansion, New Study Shows
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📰 The quick summary: Indonesia can meet its biofuel targets through community-based production using diverse feedstocks instead of expanding oil palm plantations, delivering higher economic benefits while eliminating environmental and social costs.
📈 One key stat: Community-based biofuel production could generate a net economic benefit of $37.1 billion compared to $31.36 billion under the business-as-usual scenario, showcasing the financial advantage of more sustainable approaches.
💬 One key quote: “We need rational thinking in this time of climate crisis,” Giorgio said. “We face multiple crises. This isn’t about being pessimistic — it’s about being sensible.“
1️⃣ The big picture: Indonesia’s aggressive biofuel program requires increasing amounts of palm oil, with current mandates demanding 40% palm-based biodiesel (B40) and plans to reach 50% (B50) next year. Environmental NGO Madani Berkelanjutan has analyzed two potential paths forward: continuing palm plantation expansion or shifting to a community-based approach with diverse feedstocks. Their research shows the current strategy could require 4.72 million hectares of new plantations, causing up to $4.72 billion in environmental and social damage. Meanwhile, the alternative approach focuses on improving yields from existing plantations and empowering local communities to produce biofuels from various sources like used cooking oil and non-palm crops.
2️⃣ Why is this good news: A community-based approach eliminates the need for destructive expansion of oil palm plantations while still meeting Indonesia’s ambitious biofuel targets. Rural economies gain direct benefits estimated at $2 billion over ten years through village-owned enterprises and cooperatives producing biodiesel from local feedstocks. Diversification to alternatives like used cooking oil, rubber seeds, and nyamplung trees creates more resilient supply chains while preventing deforestation and carbon emissions. This strategy delivers a higher net economic benefit of $37.1 billion compared to $31.36 billion under business-as-usual, proving that environmental protection and economic growth can work together.
3️⃣ What’s next: Indonesia must enforce its ecological cap on palm oil plantations, as the current 17.3 million hectares approaches the maximum sustainable limit of 18.15 million hectares. Yield improvement initiatives need to target the 9 million hectares of aging plantations through replanting and improved agricultural practices. Village enterprises should be empowered to produce up to 10% of the national biodiesel supply using diverse, locally appropriate feedstocks.
Read the full story here: Mongabay – Community-based biofuels offer ‘sensible’ alternative to palm oil for Indonesia, analysis shows
