Indonesia’s biofuel subsidies may speed up forest loss

 

Indonesia’s biofuel subsidies may speed up forest loss

As the South-East Asia & Pacific Desk of SciDev.Net reports, Indonesia looks set to stimulate domestic consumption of palm oil after an announcement raising biofuel subsidies by over three times to 5,000 rupiah (US$0.40) per litre (from 1,500 rupiah per litre), by the end of May.

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The South-East Asia & Pacific Desk of SciDev.Net published an article on Indonesia's palm oil industry and its consequences for forestry in the country. The main arguments include:

  • Current palm oil and biofuel subsidies dwarf REDD+ (Reducing Emissions from Deforestation and Forest Degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries) and forest protection payments

  • More subsidies to biofuel will expand palm oil plantations in Indonesian forests

  • The subsidy is also an economic tool for control of palm oil volume and price

For a full read, please access SciDev.Net's website here.

Copyright: Chris Stowers / Panos

Eligibility: Geographical:

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