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Page 2 of 17 Stichnothe et al. Carbon Footprints 2026, 5, 11

t to 20 t of fresh fruit bunches (FFB) ha would generate an additional 14 million tons of CPO without further LUC -
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effectively sparing 3 million ha of land.

INTRODUCTION
Oil palms are recognized for their exceptional oil yield, the average oil yield per hectare is 3.7 to 4.6 ton of
palm oil compared to 0.6 tons rapeseed oil and 0.36 tons soya oil [1,2] . Malaysia and Indonesia produce
approximately 87% of the global palm oil . In contrast to other biomass products, which are mainly
[3]
consumed locally in the countries of production, more than half of the produced palm oil is exported .
[4]
Crude palm oil production in Indonesia grew from approx. 8 million tons in 2001 to 48 million tons in 2022.
The expansion of oil palm plantations was associated with the deforestation of approx. 3 million ha over the
past 20 years . As of 2020 approx. 21% of the cleared forest in Indonesia is utilized for oil palms plantations,
[5]
according to . Palm oil residues are produced throughout the year and thus can be considered as major crop
[6]
residues for power production, particularly in remote rural areas. Given the importance of palm oil for the
national economy, the Indonesian policy on renewable energy is closely linked to its development,
particularly to improve living standards and welfare in rural areas. In the long-term, renewable energy
development, such as biogas from residues of the palm oil industry, may significantly contribute to a
sustainable national energy supply. The management of residues is a paramount criterion for sustainable
palm oil . Residue management is also one of the key factors for greenhouse gas (GHG) emission reduction
[7]
of the palm oil industry and can generate additional income depending on access to the electricity-grid
[8,9]
and attractive feed-in-tariffs.

The competition for palm oils between food, feedstock for chemicals, and biodiesel applications has put it in
the limelight, resulting in a controversial worldwide debate [2,10-12] . By replacing tropical forests, new palm
plantations provoke the killing of endangered species, uprooting of local communities, and release of huge
amounts of GHG. Europe has banned biofuel feedstock and biofuels with a high risk of causing indirect
land-use change in high carbon stock areas, however, with limited effect on deforestation [13,14] , because larger
markets in China and India as well as the domestic market tend to source palm oil and derived products
from supply chains with comparatively higher rates of deforestation risk . Zero-deforestation commitments
[15]
are widespread in Indonesia, but that does not ensure the absence of deforestation risk . While contributing
[16]
to economic growth, the expansion of palm oil production has been a key driver of deforestation in the
country. Most deforestation linked to palm oil has historically been driven by large-scale producers.
Smallholders are however increasingly identified as important actors in relation to the deforestation of
forests and peatlands in Indonesia .
[16]
Palm oil production is important for the Indonesian economy; it employs over 20 million people , the
[17]
majority as plantation workers in rural areas. Plantation enterprises pay attention to economic factors and
the social welfare of the community and surrounding areas and show concrete signs of improving the welfare
of the community by strengthening the economy of the community .
[18]

Oil palms are produced by nucleus estate and smallholder managed schemes, sometimes via joint-venture
schemes but also by independent smallholders . Oil palm cultivation has improved living standards and
[19]
alleviated the poverty of many smallholder farmers . However, there is a huge gap between the economic
[20]
performance of professionally managed plantations with sufficient resources to buy seed, fertilizer, and plant
protection agents compared to the agronomic performance of small holder’s plantations. The average yield
of Indonesian smallholders is reported at approx. 11 tons fresh fruit bunches (FFB) ha , while private
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company plantations in favorable sites often reach yields of more than 30 tons FFB ha -1[21] . Monzon reported