Palm oil production in Malaysia

Palm oil production is vital for the economy of Malaysia, which is the world's second-largest producer of the commodity after Indonesia. The Malaysian Palm Oil Board (MPOB) is a government agency responsible for the promotion and development of the palm oil sector in the country. The country's palm oil industry produces about 90 million tonnes of lignocellulosic biomass, including empty fruit bunches, oil palm trunks, and oil palm fronds, as well as palm oil mill effluent (POME). In 2010, in response to concerns about the social and environmental impact of palm oil, the Malaysian government pledged to limit palm oil plantation expansion by retaining at least half of the nation's land as forest cover.

Malaysia has made significant strides toward sustainable palm oil production and reducing its environmental impact. The country has committed to capping palm oil cultivation at 6.5 million hectares and maintaining over 50% of its land area as forest cover. As of the latest reports, Malaysia's forest cover stands at 55.3%, encompassing approximately 18.27 million hectares.

To further its commitment to sustainability, Malaysia is actively promoting sustainable palm oil production and transitioning to net-zero emissions. Efforts include adopting sustainable land management practices, capturing methane from palm oil mill effluent, and utilizing renewable energy sources.

A recent study reported that palm oil mills in Malaysia emit between 637 and 1,131 kg of CO₂ equivalent per tonne of crude palm oil produced. The study found that mills achieving energy self-sufficiency—through the use of renewable energy and methane capture from palm oil mill effluent—could reduce emissions by up to 457 kg CO₂ equivalent per tonne. These findings highlight the potential for emission reductions through improved energy efficiency in Malaysia’s palm oil sector.