Oil palm expansion transforms tropical landscapes and livelihoods

Oil palm is a highly profitable crop adapted to the humid tropics and the area devoted to this crop is likely to expand significantly in the future. It has many environmentally favourable attributes over its full life cycle. When well managed it has a positive carbon balance and when grown in a landscape mosaic it can play a role in biodiversity conservation. It has driven rapid economic growth in several tropical developing countries and contributed to the alleviation of rural poverty. Abuses during periods of rapid estate expansion into areas of natural forest and onto the lands of poor rural communities have led to criticism by environmental and social activists. With good governance oil palm can make valuable contributions to development and the resulting prosperity may free people to invest in better environmental practices.

► Oil palm has good environmental qualities but uncontrolled expansion has caused social and environmental harm.
► Oil palm has made major contributions to alleviating rural poverty; oil palm has a better carbon balance than many other crop.
► Oil palm in landscape mosaics can provide good biodiversity outcomes.
► Poor governance has allowed predatory corporations to expand their land holdings at the expense of poor people.
► Prosperity frees people to invest in longer term environmental sustainability.