Thursday, December 1, 2016

At RSPO RT14 Bangkok - big news Marrakech Declaration by Africa palm producers. GA resolution results.


News from RSPO

RSPO RT14 CONFERENCE EMPHASISES EQUALITY, HUMAN RIGHTS AND SMALLHOLDER INCLUSIVITY News, 29 November 2016 http://www.rspo.org/news-and-events/news/rspo-rt14-conference-emphasises-equality-human-rights-and-smallholder-inclusivity

 13TH GENERAL ASSEMBLY SUMMARY REPORT Announcements, 30 November 2016 http://www.rspo.org/news-and-events/announcements/13th-general-assembly-summary-report

 IMPROVED RSPO IT SYSTEM PALMTRACE WILL FEATURE RSPO CREDITS TRADE News, 30 November 2016
http://www.rspo.org/news-and-events/news/improved-rspo-it-system-palmtrace-will-feature-rspo-credits-trade

SUSPENSION AND TERMINATION DUE TO NON-SUBMISSION OF ACOP REPORTS 2015 News, 21 November 2016
http://www.rspo.org/news-and-events/news/suspension-and-termination-due-to-nonsubmission-of-acop-reports-2015

RSPO STATEMENT ON DISCLOSURE OF RSPO MEMBERS’ CONCESSION MAPS News, 08 November 2016

http://www.rspo.org/news-and-events/news/rspo-statement-on-disclosure-of-rspo-members-concession-maps



 Day 3 (10 Nov): 9 Africa producer nations to pledge no net deforestation. GA policy resolutions results.


RSPO GA

RSPO GA key policy resolution tracking with results: https://m.facebook.com/story.php?story_fbid=1274341349284675&id=116785031706985

I just had glance at the GA resolutions.They rightly focus on streamlining for cost-efficient smallholder certification:
- On downstream  and NGO commensurate efforts e.g. "no palm oil" by RSPO CGM a bug bear. Indonesia Grower Caucus (IGC)
- Fixed period for key documents. IGC.
- Compensation procedure. To publish cases and action for transparency. Current is voluntary declaration without public disclosure.
- Whistleblowing mechanism.
- NPP for indep smallholders. Solidaridad and SRT Jambi and many plantations.
- Exempt NPP for independent and scheme smallholders. IGC.
- Group certification system suspension. As smallholders face complicated process for GHG and HCV Comp. IGC.


News updates


Day 3 (10 Nov) tracking

Regional Perspective session. Shows major efforts include governments to shift to private-public efforts. Amsterdam Declaration is for RSPO certified or equivalent but palm oil in food use has been dropping. Upcoming 9 Africa producer nations signing of Marrakech Declaration will promote RSPO certification amidst smallholder focus; crucially pledges zero net deforestation. Sees RSPO as insufficient coverage and need to raise the floor. https://m.facebook.com/story.php?story_fbid=1274181565967320&id=116785031706985

Have smallholder seen improvements session. Struggling for metrics from Amanah case and focus more on issues and policy by the speakers. There is floor feedback on capacity shortcomings. Oxfam (EB member) says need more than just the "certification tool" and draft snallholder strategy paper received by EB last week is to stay ambitious but keep it simple.   https://m.facebook.com/story.php?story_fbid=1274226282629515&id=116785031706985

Closing address talks about global inequality and that no one should be left behind. Points to working with local governments e.g.  Sabah where carbon stocks are found to be 40% higher than in the Amazon (per ha?), South Sumatra and Kalimantan projects. Ecuador commitment just came. Marrakesh Declaration for sustainable development is big. Needs to be on an equitable basis. RSPO has a role as a convenor. Simple step of exclusion must be minimised. RSPO to work closely with Singapore to pull this region along.


Day 2 (9 Nov) tracking

What are implications of Brexit-Trump victories for sustainability? Review your political-economic structure and mitigate negative economics for small suppliers.  https://m.facebook.com/story.php?story_fbid=1273430179375792&id=116785031706985   




RSPO Updates session: 

Monitoring impacts session: 
Buzzword/catch phrase abundant e.g. theory of change. Hmmmm.

Assurance session closes Day 2: https://m.facebook.com/story.php?story_fbid=1273543816031095&id=116785031706985 

RSPO is highlighting twitter to follow events, but it seems to have lot of anti-RSPO (e.g. licence to kill) comments too: https://mobile.twitter.com/search/live?q=%23RSPO  


Day 1 (8 Nov) reflections

As I look at news on the US elections rolling out it is interesting to reflect on the so-called elite vs non-elite concerns embedded in this and having more prominence in policy making. These are apparently also high among the concerns of some senior RSPO observers. Recall that IPOP was disbanded by Indonesia on fears of outcomes for smallholders from  "economic cartel" behaviour risks ie. exclusion and added price discounting. RSPO watchers are also concerned about a surprise Brexit-type risk for this certification club (that covers the best or top 20% of production)  well organised by regional/international interests but that has struggled to include smallholders on a large-scale. Could national administrations try to intervene in some way? In KL, there is market talk that high politics also has its eyes peeled.

I have covered palm sustainability since 2009, highlighting the need for economic trickle down. It is heartening to see a rise in RSPO smallholders within the last two years; as the big plantations finished covering their own processing and estates first. Our checks on smallholders is that independent smallholders covered may be former scheme projects, suggesting that an inclusionary approach is hard to come.

A positive will be the jurisdictional RSPO certification move. But commercial players see this as some way off as the lead Sabah programme is said not to have a detailed plan yet. The RSPO consultant presenting on this yesterday said as much. That the Sabah administration is mooting legislative change to make RSPO a legal requirement underlines the limits of voluntary buy in.

Corporates were cheering the HCS Convergence. But I think questions remain on the hard vegetation threshold (what is the equivalent carbon ceiling in each region) and the important issue of suquencing the social aspect. Greenpeace represented the steering committee and mentioned a timeframe of "months if not years" on social and FPIC. We would need to read the details of this appatently work-in-progress policy. On a related issue, RSPO Next's support has to be determined.

At the carbon emissions cluster, it was good to see two years worth of carbon data. From 1 Jan 2017, public disclosure starts. This comes amidst the coming into force of the Paris Climate Agreement. It is voluntary and the reported drop in carbon prices is worrying. Nevertheless, experts are looking out for carbon trading / taxes in the future. Experts say they have yet to consider these in the RSPO context but it likely has to considered. The ultimate question is this: where do premiums go?

I also attended the cluster on Thai palm sustainability. Interesting point discussed afterward is the lack of reported data on land use change to palm. Is it well under 10% forest conversion as Thai observers tell me? Thai palm should say this out loud.

The finance cluster focussed on rising demands by international financiers and laggard regional banks and FMCG. Other clusters were on FFB traceability (legality an issue in Indonesia and Thailand) biodiversity and PKO. The premium and availability issues are top of mind for its buyers. Other issues are the politics of the RSPO complaints system.

The big silent problem is the HCV Complaints Liability. I am told by commercials that this and other costs are pricing out independent smallholders from RSPO. It is also likely impacting potential corporate M&A at a time when sector consilidation is expected. I covered this Compensation at the policy development stage at some detail. I was surprised by the then sanguine views and lack of a legal reading.

At RSPO RT14 in Bangkok, there are likely 800 participants. Key stakeholder representatives are familiar friendly faces.  Very glad to be here in 2016 for palm sustainability that I first started to attend seven years ago.
#RSPO #RT14
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