A Burning Issue

Tour guide Asok Kesavan has brought his multinational group of tourists to see some of the oil palm plantations in the countryside in his homeland, Malaysia. He asks his driver to stop the bus and the tourists unload briefly for a walk through the rows of palm. There are many, many rows. “This is not a family business. These are big private companies and Malaysia is the largest explorer and producer of palm oil,” Kesavan says, pointing out the grape-like clusters of ripening fruit that nestle between trunk and branches like an overflowing treasure chest. The oil is used for everything from margarine to cosmetics, and it is exported worldwide. “We are the only country to sell oil to the Middle East,” he jokes.

Palm oil is one of the world’s leading agricultural commodities. The two biggest producers, Malaysia and Indonesia, account for 84 percent of the world’s palm oil production and ring up sales of US$11 billion annually. But as Asok Kesavan knows, lucrative crops can bring trouble. He has seen the fires and the smog, just like his countrymen and millions of others in Indonesia, Singapore, and the rest of Southeast Asia. Plantation owners slash and burn existing vegetation to clear the way for more and more palm, rows and rows sown in place of once-lavish and ancient rainforests. The forests, obliterated by fire, are replaced by hectares of monoculture, and the ground beneath is kept clear of even shade-tolerant native species.

Bad as it already is, this situation may be set to worsen. The world can only use so much lipstick but its appetite for energy seems insatiable, and palm oil may be the Next Big Thing in energy. As biofuels take center stage and governments mandate their use—ironically for the environmental benefits—additional forest destruction, and the attendant loss of wildlife and proliferation of smoke-filled skies, are likely to ensue...