production for domestic consumption needs. 4. Company revenues can reach levels of US750-1,125 MM per year within 7-10 years
once plantations are mature and well-managed.
The resulting revenues for the investing companies would make a significant contribution to raising Liberias Gross National Product GNP. This assumes export
prices remaining at the current level of US750 per metric ton. This pricing level is not unrealistic as prices have stayed at this level for the last two years. However, achieving
this level of revenue increases will take major additional infrastructure investments in roads, ports, housing, and communications systems by the companies, banks, and
government financing institutions. Additionally, government and private sector resources will be needed to boost the capacities of educational and training institutions to provide
technical, managerial, and skill development.
5 Generate substantial tax revenues and financing for an oil palm development fund. The pending palm oil developments in Liberia could make substantial contributions to
national tax revenues and thereby improving Liberias fragile financial position. International donors and financing agencies such as USAID, IFC, and the World Bank
could redirect their funding from balance of payments subsidies towards investments in productive infrastructure and human resource development. The government could
earmark a portion of tax revenues or create a special levy to set up an oil palm development fund to benefit smallholders and local communities and promoting
sustainable production. However, such a fund needs to be professionally and independently managed with high standards of transparency and accountability.
3. Potential Environmental and Social Issues
The pending oil palm concessions will constitute land use changes on a significant scale. The two largest initiatives of Sime Darby and Golden VerOleumSinar Mas will each
entail a number of individual production units in multiple locations and counties. For example, Figure 7 contains a map of Sime Darbys new oil palm and residual and
renewed rubber plantations totaling over 311,000 hectares in Grand Cape Mount, Bomi, Bong, and Gbarpolu counties. Golden VerOleums November 2009 Business Concept
Presentation cited in Annex B contains a map that indicates their 240,000 hectares of core and outgrower oil palm plantations will be established within a 500,000 ha “gross
interest area” - which according to the company will exclude protected and potentially biodiverse zones. The areas identified by the company for plantation development
appear to abut or potentially overlap with Liberias only gazetted protected area, Sapo National Park, and with adjacent natural forest areas that have been recommended for
designation as conservation forests.
A cursory review of Figure 8, Liberia’s Forest Cover in 2008, and Figure 9, Liberia Land Cover Map indicates potential areas of conflict between the pending oil palm plantation
concessions and closed canopy natural forest cover. According to documents reviewed by the advisor, Liberia still contains the largest proportion of intact natural forests in the
Guinean Forest Zone which covers several countries in West Africa. Despite major forest
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destruction suffered during the civil war era, and ongoing incidence of wildlife poaching throughout the country, Liberia still contains high levels of biological diversity and
endemic species. A number of these species and their habitats are facing increasing pressures and threats to their viability. With the oil palm development experience in
Southeast Asia as a frame of reference, there is grounds for concern that rapid and unsustainable expansion of oil palm plantations could exacerbate the situation. Instead of
or in addition to the positive scenarios envisioned in the previous section, this rapid expansion could lead to major disruptions of natural forests and dislocations of
endangered species in Liberia.
Another area of concern regarding the rapid expansion of oil palm plantations pertains to traditional land tenure and potential conflicts between companies and local communities.
This is a major challenge in Indonesia, where customary rights are not officially recognized and frequently lead to difficulties for oil palm development efforts.
Identification of traditional land tenure appears to have greater government support in Liberia, although legal status for specific land units may be lacking. Additionally, there
are a number of lingering disputes stemming from land seizures and occupations of company facilities both during and after the conflict era. Therefore, effective
coordination between the companies and local government and communities will need to be undertaken to identify effective tenurial mapping and compensation mechanisms.
During the advisors visit, he frequently heard from officials that Liberias forests should be apportioned for “community, commercial, and conservation” uses. This formulation
admirably seeks balanced forest development and equitable distribution of social, economic, and environmental benefits. This approach is highly consistent with the best
practices of sustainable palm oil as laid out in the Principles and Criteria P C of the Roundtable for Sustainable Palm Oil RSPO-Annex C.
The RSPO contains several key mechanisms and tools to address land use change and land tenure issues. First, the RSPO requires all of its members to conduct High
Conservation Value HCV assessments of all concession areas prior to any new plantation establishment. If properly conducted by experienced and objective parties,
HCV assessments and management plans can potentially prevent unsustainable practices and widespread forest conversion Section 5 further elaborates this theme. Second, in
January 2010, the RSPO established its global guidelines for responsible and transparent procedures for new plantations. This would apply completely to Liberia since all of its
oil palm development would entail new plantings. Third, the RSPO Principles and Criteria P C mandate the use of the Free Prior and Informed Consent FPIC
framework that can provide effective means to avoid and resolve land use conflicts.
Therefore, it was very encouraging to learn that the oil palm concession agreement between the Liberian Government and Sime Darby contained the following clause:
“Investors obligations with respect to the environment shall be in accordance with the Environmental Protection and Management Law of Liberia or any other law or regulation
of Liberia, regulations of the Environmental Protection Agency EPA and the Principles of the Roundtable for Sustainable Palm Oil RSPO”.
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Figure 7: Map of Sime Darby Concession Areas
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Figure 8: Liberia’s Forest Cover in 2008
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Figure 9: Liberia Land Cover Map 5. The High Conservation Value Forest HCVF Assessment and Management
Framework: A Viable Means of Promoting Sustainable Palm Oil in Liberia
The High Conservation Value Forest HCVF concept was developed in 1999 by the Forest Stewardship Council, where it was included as Principle 9 in its Principles and
Criteria for “sustainable forest management”. It was developed in recognition that certain forest areas have critical biological, ecological, social or cultural values – they may provide
basic needs for local people, provide essential ecosystem services, or contain or support threatened or endangered habitats or species. These values may be of importance at the
local, national, regional or global scale.
High Conservation Value Areas or Forests HCVAs or HCVFs are areas or forests that contain high environmental and social values. With the expansion of its use, the focus on
“forest” in HCVF was dropped, recognising that non-forest natural ecosystems can also be
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of high conservation value. The classification system for High Conservation Values HCV is based on the revised High Conservation Value Area Toolkit that was produced in
2008, as follows:
HCV1: Forest areas that contain globally, regionally or nationally significant concentrations of biodiversity values this includes: protected areas, rare or threatened
species, endemic species, and seasonal concentrations of species
HCV2: Globally, regionally or nationally significant large landscape-level forests. HCV3: Forest areas that are in or contain rare, threatened or endangered ecosystems.
HCV4: Forest areas that provide basic environmental services in critical situations this includes: protection of watersheds, and protection against erosion and destructive fire
HCV5: Forest areas fundamental to meeting basic needs of local communities HCV6: Forest areas critical to local communities’ traditional cultural identity
The HCV framework provides a structure where forest and other natural areas with these critical values are identified prior to any changes in land use or development. Once
identified, appropriate management options can be developed and implemented to maintain or enhance these important values. The key disciplines required in conducting HCV
assessments and management plans include forest ecology vegetation, hydrology, etc., wildlife ecology mammals, aviary and aquatic species, reptiles, etc., socio-economic, and
geographic information systems GIS analysis and mapping. The Revised HCV Toolkit of 2008 identifies the following three key steps and procedures for HCV assessment,
management, and monitoring in palm oil development:
1. Identification of HCVs present, leading to identification of HCV management areas and proposals of management prescription to maintain or enhance these areas.
2. Development and implementation of an HCV management plan 3. Implementation of a monitoring program to assess the effectiveness of the HCV
management plan.
The RSPO has strategically included HCVs in the Principles and Criteria PC, especially in regards to new plantings. The requirements for HCV appears twice in
Criterion 5.2
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with regards to the requirement for the identification and management of rare, threatened or endangered species and high conservation value habitats in existing
plantations; and in Criterion 7.3
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, on new plantings since November 2005, where it is
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Criterion 5.2: The status of rare, threatened or endangered species and high
conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into
account in management plans.
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Criterion 7.3: New plantings since November 2005, have not replaced primary forest or
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stipulated that any primary forest or areas required to maintain or enhance any HCVs are not cleared for new plantings. This is meant to identify areas, in a participatory manner
with local communities and other relevant stakeholders, that are suitable for conversion to oil palm development and which areas are not, so that oil palm plantings do not overlap or
encroach on lands with critical values as defined in the HCV toolkit. In essence, this provides guidance for plantation management on appropriate land-use and conservation
planning and management.
The HCV toolkit does not offer detailed guidelines on HCV management or monitoring. It only provides management recommendation guidelines for each of the six HCVs
summarized above in broad generic terms for consideration rather than to impart detailed management requirements. The HCV approach has not yet become part of the legal
process in Indonesian, Malaysia, or any of the producing countries. It remains a voluntary procedure adopted by companies operating within the framework of the Forest Stewardship
Council and Roundtable on Sustainable Palm Oil’s certification processes or other interests also adopting corporate ‘best practice’ procedures.
HCV assessments are typically conducted by a team of specialists in biological and social science disciplines. The team members may represent some or all of the following areas:
- Forest Ecology - Hydrology
- Wildlife Ecology Mammals, birds, herpetology, etc. - Social Economy
- Geographic information systems GIS analysis
The HCV teams start their assessments by conducting a review of available data, maps, and literature about the specific concession area and its broader region. Thereafter, the
teams proceed to conducting field surveys, data collection, and stakeholder interviews. Thereafter, the individual team members conduct analyses according to the HCV
categories summarized above. This leads to delineation and mapping of HCVFs, accompanied by a narrative report containing conclusions and recommendations for
management and monitoring of these areas. Prior to completion, HCV assessments require conducting a public consultation with all pertinent stakeholders and a peer review
process with independent experts. The completed HCV assessments are advisory in nature, leaving it up to the companies to develop their own means and measures to
implement the recommendations.
In Indonesia, FFI works with oil palm companies to help foster a sustainable palm oil industry in key conservation priority areas such as the peat swamp forests of West
Kalimantan which are some of the major remaining orang-utan habitats. This means developing public-private partnerships with oil palm companies, primarily by assisting
them with high conservation value forest HVF assessments RSPO certification. FFI is also working with selected concessions to develop potential REDD schemes for carbon
trading tied to the protection of HCV areas.
any area required to maintain or enhance one or more High Conservation Values. 2
6. Conclusions and Recommendations A. Conclusions of the Field Visit
