Material Insights · Understanding the Material World

Palm oil: Emissions

Peat, forests and the oil with a heavy footprint

What this tab covers The greenhouse-gas footprint of the commodity at a global level, split by lifecycle phase: extraction (or farming), refining and processing, movement, usage, and recycling or end of life. Intensities are per unit of product; the global total combines intensity with world output. Also covers other environmental impacts and the main levers to cut emissions. Emission intensity 7.30 t CO2e per t range about 2-4 on mineral soils with methane capture; well above 10 on recently drained peat (indicative) · cradle-to-retail global mean including land-use change, GWP100 Global emissions per year 580 Mt CO2e per year 2026/27 · 7.3 t CO2e/t x 78.9 Mt (indicative upper estimate; a median-type intensity of 3.8 would give about 300 Mt)

Per kg (or t) of refined palm oil at retail; cradle-to-retail including land-use change. Intensity: Poore & Nemecek 2018 (Science), via Our World in Data (indicative); Alcock et al. 2022, Science of the Total Environment 829:154539 (median 3.81 kg CO2e/kg refined oil across oil crops; rapeseed 2.49, soybean 4.25). Global total: derived from USDA PSD with Poore & Nemecek 2018 (Science), via Our World in Data (indicative).

Share of footprint by lifecycle phase

Extraction 63% Refining / processing 33% Movement 4%

Footprint by lifecycle phase

PhaseIntensityShareMain sources of emissionsNotesSource
Extractionabout 4.6 t CO2e/t (land-use change about 3.1, farm about 1.5)63%clearing forest and draining peat, fertiliser N2O, peat oxidationconverting Southeast Asian peat swamp forest to plantations accounts for about 0.44-0.74% of global GHG emissionsPoore & Nemecek 2018 (Science), via Our World in Data; stage shares approximate (indicative); Nature Communications 2020 (s41467-020-14298-w)
Refining / processingabout 2.4 t CO2e/t (milling, refining and packaging)33%methane from palm oil mill effluent (POME) ponds; refining heat; bottles and packagingmills produce large volumes of POME; methane capture removes most of the mill emissionsPoore & Nemecek 2018 (Science), via Our World in Data; stage shares approximate (indicative)
Movementabout 0.3 t CO2e/t (transport and retail)4%tankers through the Strait of Malacca; truck to millspalm is shipped in bulk tankers, so movement is a small sharePoore & Nemecek 2018 (Science), via Our World in Data; stage shares approximate (indicative)
Usagenot in the boundary–food frying; biodiesel (Indonesia's B40 mandate from 2025); soaps and oleochemicalsbiodiesel combustion CO2 is biogenic, but land-use change can erase the savingnot quantified
Recycling / end of lifenot applicable as recycling; residues used–shells and fibre fire mill boilers; empty fruit bunches as mulch; used cooking oil to biodieselused cooking oil biodiesel saves roughly 80-90% against fossil dieselEU Renewable Energy Directive II default values (indicative)

Other environmental impacts

Deforestation, peat fires and haze, and loss of orangutan and other habitat. On the other side, palm gives about 4-5 t of oil per hectare (GAR reported 5.0 t/ha of palm products in 2025), several times soybean or rapeseed, so it uses less land per tonne.

Levers to cut emissions

  • Methane capture (biogas) at mills, which removes most POME emissions
  • No deforestation, no peat commitments (RSPO, NDPE) and rewetting of drained peat
  • Replanting with higher-yield seed to raise oil per hectare instead of clearing new land
  • Use of mill residues for energy in place of diesel

India

India is the largest palm oil importer (25.2% of 2024 import value; 8.4 Mt forecast for 2026/27), so most of its palm footprint is imported land-use-change and mill methane. Its own oil palm mission plants on existing farmland in Andhra Pradesh, Telangana and the north-east (UN Comtrade 2024; USDA PSD; NMEO-OP).

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.