MPOB: Palm oil sector could drive Malaysia’s net-zero emissions goals
Malaysia’s palm oil industry is being positioned as a key contributor to net-zero goals, with mature plantations storing large amounts of carbon. MPOB highlights carbon-credit opportunities, sustainable biomass use, and the need to support smallholders so they can benefit from renewable energy, bio-products and emissions-reduction initiatives.
GENTING HIGHLANDS (Dec 5): The palm oil sector could be a major contributor towards Malaysia’s goal of achieving net-zero emissions by 2050, rather than a liability, as mature oil palm plantations sequester substantial amounts of carbon dioxide (CO2).
Malaysian Palm Oil Board (MPOB) director general Datuk Dr Ahmad Parveez Ghulam Khadir said with sustainable practices and innovations, the sector could further enhance carbon stocks while supplying food, fuel, and materials to a growing world.
“Malaysia is home to approximately 5.7 million hectares of oil palm, making us the world’s second-largest producer of palm oil.
KWAP launches RM2 billion Dana Iklim+, the country’s first dedicated climate investment fund, aimed at accelerating Malaysia’s low-carbon economy while delivering sustainable returns. The fund targets infrastructure, private equity, real estate, and nature-based solutions, aligning with Malaysia’s NDC 3.0 goal to reduce emissions by up to 30 million tonnes by 2035.
“This vast plantation area is more than just a source of edible oil and renewable energy; it is a massive carbon sink, a biodiversity corridor when managed sustainably, and now, increasingly, a platform for generating high-integrity carbon credits,” he said.
Ahmad Parveez said this during his opening address at the 2nd Unlocking Revenue and Sustainability Exploring Carbon Credit Opportunities in The Palm Oil Industry 2025 Conference here on Friday.
With the theme “Asean Biomass in Focus”, the conference established itself as a key platform connecting the carbon market with the palm oil sector, and supporting a future for the industry to lead in sustainability, leveraging carbon credits to reduce environmental impact and drive innovation.
According to Ahmad Parveez, studies also showed that mature oil palm plantations could store an estimated up to 30-40 tonnes of carbon per hectare in the standing biomass alone, proving their role as a significant terrestrial carbon sink.
He also said carbon credit methodologies are specifically needed to design oil palm biomass shine, as Malaysia generates more than 100 million tonnes of oil palm biomass annually from trunks, fronds, empty fruit bunches, mesocarp fibres, palm kernel shells, and mill effluent.
This significant volume of by-products represents immense potential as an abundant, renewable, and sustainable resource for renewable energy generation, the production of high-value bio-products and biochemicals, as well as for the application in sustainable construction and green building materials.
“By chipping and removing trunks or palm oil mills’ by-products valorisation for various applications, such as biochar production and biomass power generation, we avoid methane and CO2 emissions that would otherwise occur,” said Ahmad Parveez.
He also emphasised enabling smallholders to participate in carbon projects through clear guidelines, simplified methodologies, and digital monitoring, reporting and verification tools.
“They (smallholders) manage more than a quarter of Malaysia’s oil palm area, yet they often face the highest barriers in adopting new technologies and sustainable practices.
“By enabling smallholders to participate, we ensure that they too can generate new income from avoided emissions,” said Ahmad Parveez.
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Source : The Edge Malaysia
