Palm oil production remains important to Papua New Guinea’s (PNG) economy. In the last decade it has contributed approx. 40% of export dollars from the agricultural sector. In 2016, it generated over $430 million in exports.

PNG’s palm oil is by and large produced sustainably – this is credit to established industry players and the commitment of the Government. This sustainability ensures PNG is able to access lucrative global markets, such as the European market where the highest prices for this product are offered.

This is however coming under extreme pressure from new market entrants and unsustainable practices. In response to these pressures, the government is planning to develop a national palm oil policy. This will give direction to the sector and put the Government in the ‘driver’s seat.’

At the Government’s request, the United Nations Development Programme (UNDP) is working with communities and the private sector to establish the PNG Palm Oil Platform (PNGPOP). This mechanism facilitates dialogue between these groups encouraging transparency.

To further the development PNG POP, Mr. Daniel Kombuk, the Acting Secretary of Department of Agriculture and Livestock (DAL), recently hosted discussions inviting all partners including UNDP on efforts to continue collaboration on this initiative.

“I believe the PNGPOP has gone through a lengthy and rigorous consultation process with key government agencies, private sector and civil society organizations. This meeting is timely and part of ongoing discussions with development partners such as UNDP,” Mr. Kombuk said.

It is critical that foreign investors comply with international standards for best practice. This ensures the sector upholds its sustainability which relies on maintaining among other things, zero deforestation. The loss of this sustainability will impact many stakeholders, in particular those communities involved in the production of palm oil. The most immediate impact will be the loss of much needed income to rural households.

Mr. Kombuk welcomed the PNGPOP initiative and thanked UNDP for its continued support of this government-led effort.

The PNGPOP encourages the involvement of key stakeholders from Government, civil society, rural communities and the private sector in dialogue on how to best ensure PNG’s palm oil sector maintains its world class standards while protecting of natural assets, in particular, its forests.

“DAL has been in the forefront of this initiative. It is important for the Department to be part of this work given the fact that commercial and subsistence agriculture have been identified as drivers of forest loss in PNG,” said Mr. Mirzohaydar Isoev, UNDP Chief Technical Adviser for REDD+.

The agriculture sector is a key component of the National REDD+ Strategy. UNDP is working with key stakeholders on a REDD+ Finance and Investment Plan to implement this Strategy.

Led by DAL, a joint policy submission to maintain sustainable palm oil standards in PNG will be submitted to the Government to formally endorse the POP. The submission will also recommend Government to adopt a national declaration on sustainable palm oil.