How Palm Oil Impacts the Environment in 2025

Palm oil is one of the world’s most widely used edible oils, found in over half of packaged foods and personal care products. While its versatility and low cost drive massive global demand, the environmental cost is significant and increasingly visible. From the clearing of ancient rainforests to rising greenhouse gas emissions, the environmental impact of palm oil production remains a pressing concern.

The Scale of Palm Oil Production

Palm oil plantations now cover more than 27 million hectares globally, with Indonesia and Malaysia producing over 85% of the world’s supply. These regions host some of the planet’s most biodiverse ecosystems, including critical habitats for endangered species like orangutans, tigers, and Sumatran rhinos. Expanding palm oil cultivation has led to large-scale land conversion, often replacing primary forests and peatlands.

Deforestation and Biodiversity Loss

The conversion of natural forests to monoculture palm plantations disrupts entire ecosystems. Peatland drainage and burning for new plantations release enormous amounts of carbon dioxide—studies show that deforested peatlands can emit up to 2,000 tons of CO2 per hectare annually. This not only accelerates climate change but also destroys habitats, pushing vulnerable species closer to extinction.

Supporting keywords such as ‘peatland degradation’ and ‘tropical forest conservation’ highlight the interconnectedness of land use, carbon cycles, and wildlife survival. Without urgent action, the loss of biodiversity continues at an alarming rate.

Greenhouse Gas Emissions and Climate Effects

Beyond deforestation, palm oil production contributes to climate change through direct emissions. Burning forest residues during land clearance releases particulates and greenhouse gases, worsening air quality and global warming. Additionally, soil carbon stored in peat lands is released when drained, creating long-term emissions that persist for decades.

Recent research from 2024 confirms that palm oil-driven land-use change accounts for up to 12% of regional greenhouse gas emissions in key producing countries. This underscores the need for sustainable alternatives and stronger enforcement of no-deforestation commitments.

Social and Environmental Trade-offs

While palm oil supports economies and livelihoods, the environmental cost raises ethical questions. Smallholder farmers often face pressure to expand plantations on marginal lands, sometimes illegally. Conversely, large-scale operations can drive displacement and loss of indigenous land rights. Transparent supply chains and certification schemes like RSPO (Roundtable on Sustainable Palm Oil) aim to balance production with environmental protection, though gaps remain in monitoring and enforcement.

Pathways to a Sustainable Future

Consumers and businesses can drive change through informed choices. Selecting products with credible sustainability certifications, reducing overall palm oil consumption, and supporting reforestation initiatives help mitigate harm. Innovations in alternative oils and cell-based solutions also offer promising alternatives to conventional palm oil.

In 2025, prioritizing traceable, certified sustainable palm oil is no longer optional—it’s essential for protecting ecosystems and combating climate change. Every purchase decision shapes the future of forests and wildlife. Choose wisely, demand accountability, and help build a more sustainable supply chain today.