THE ROLE OF CERTIFICATION SCHEMES (RSPO, ISPO, MSPO) IN SHAPING GLOBAL PALM OIL MARKET ACCESS
Keywords:
RSPO, ISPO, MSPO, sustainable palm oil, market access, certification schemes, trade governanceAbstract
This study explores the role of palm oil certification schemes Roundtable on Sustainable Palm Oil (RSPO), Indonesian Sustainable Palm Oil (ISPO), and Malaysian Sustainable Palm Oil (MSPO) in shaping global market access for palm oil products. Using a literature review method, this research analyzes scholarly articles, policy papers, and industry reports to examine how sustainability certifications influence trade opportunities, supply chain governance, and international perceptions of environmental responsibility. The findings reveal that certification schemes function as both market entry mechanisms and instruments of environmental diplomacy. RSPO, as a voluntary global standard, often dominates international trade preferences, particularly in Europe and North America. Meanwhile, ISPO and MSPO represent national policy responses aimed at asserting sovereignty over sustainability governance and enhancing competitiveness in the global market. However, challenges remain in aligning these schemes with international expectations, particularly regarding traceability, compliance costs, and the inclusion of smallholders. The study concludes that harmonizing certification standards and strengthening transparency across supply chains are essential to improving the global acceptance of certified palm oil. Furthermore, literature suggests that future policy integration between public and private standards could enhance mutual recognition and promote sustainable trade practices globally.
Downloads
References
Abdul Majid, N., Ramli, Z., Md Sum, S., & Awang, A. H. (2021a). Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review. Sustainability, 13(6), 3263. https://doi.org/10.3390/su13063263
Abdul Majid, N., Ramli, Z., Md Sum, S., & Awang, A. H. (2021b). Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review. Sustainability, 13(6), 3263. https://doi.org/10.3390/su13063263
Alexander, R. (2020). Emerging Roles of Lead Buyer Governance for Sustainability Across Global Production Networks. Journal of Business Ethics, 162(2), 269–290.
Apriani, E., Kim, Y.-S., Fisher, L. A., & Baral, H. (2020). Non-state certification of smallholders for sustainable palm oil in Sumatra, Indonesia. Land Use Policy, 99, 105112. https://doi.org/10.1016/j.landusepol.2020.105112
Arton, A., Leiman, A., Petrokofsky, G., Toonen, H., & Longo, C. S. (2020). What do we know about the impacts of the Marine Stewardship Council seafood ecolabelling program? A systematic map. Environmental Evidence, 9(1), 6. https://doi.org/10.1186/s13750-020-0188-9
Camilleri, M. A. (2022). The rationale for ISO 14001 certification: A systematic review and a cost–benefit analysis. Corporate Social Responsibility and Environmental Management, 29(4), 1067–1083. https://doi.org/10.1002/csr.2254
de Vos, R. E., Suwarno, A., Slingerland, M., van der Meer, P. J., & Lucey, J. M. (2023a). Pre-certification conditions of independent oil palm smallholders in Indonesia. Assessing prospects for RSPO certification. Land Use Policy, 130, 106660. https://doi.org/10.1016/j.landusepol.2023.106660
de Vos, R. E., Suwarno, A., Slingerland, M., van der Meer, P. J., & Lucey, J. M. (2023b). Pre-certification conditions of independent oil palm smallholders in Indonesia. Assessing prospects for RSPO certification. Land Use Policy, 130, 106660. https://doi.org/10.1016/j.landusepol.2023.106660
Delabre, I., Rodriguez, L. O., Smallwood, J. M., Scharlemann, J. P. W., Alcamo, J., Antonarakis, A. S., Rowhani, P., Hazell, R. J., Aksnes, D. L., Balvanera, P., Lundquist, C. J., Gresham, C., Alexander, A. E., & Stenseth, N. C. (2021). Actions on sustainable food production and consumption for the post-2020 global biodiversity framework. Science Advances, 7(12), eabc8259. https://doi.org/10.1126/sciadv.abc8259
Depoorter, C., & Marx, A. (2024). Fostering compliance with voluntary sustainability standards through institutional design: An analytic framework and empirical application. Regulation & Governance, 18(4), 1132–1152. https://doi.org/10.1111/rego.12573
Dietz, T., Grabs, J., & Chong, A. E. (2021). Mainstreamed voluntary sustainability standards and their effectiveness: Evidence from the Honduran coffee sector. Regulation & Governance, 15(2), 333–355. https://doi.org/10.1111/rego.12239
Fiankor, D.-D. D., Flachsbarth, I., Masood, A., & Brümmer, B. (n.d.). Does GlobalGAP certification promote agrifood exports? Retrieved October 24, 2025, from https://dx.doi.org/10.1093/erae/jbz023
Furumo, P. R., Rueda, X., Rodríguez, J. S., & Parés Ramos, I. K. (2020). Field evidence for positive certification outcomes on oil palm smallholder management practices in Colombia. Journal of Cleaner Production, 245, 118891. https://doi.org/10.1016/j.jclepro.2019.118891
Garbely, A., & Steiner, E. (2022). Understanding compliance with voluntary sustainability standards: A machine learning approach. Springer. https://doi.org/10.1007/s10668-022-02524-y
Gichuki, C. N., Gicheha, S. K., & Kamau, C. W. (2020). Do food certification standards guarantee small-sized farming enterprises access to better markets? Effectiveness of marketing contracts in Kenya. International Journal of Social Economics, 47(4), 445–459. https://doi.org/10.1108/IJSE-08-2019-0501
Ikram, M., Sroufe, R., Rehman, E., Shah, S. Z. A., & Mahmoudi, A. (2020). Do Quality, Environmental, and Social (QES) Certifications Improve International Trade? A Comparative Grey Relation Analysis of Developing vs. Developed Countries. Physica A: Statistical Mechanics and Its Applications, 545, 123486. https://doi.org/10.1016/j.physa.2019.123486
Jena, P. R., Lippe, R. S., & Stellmacher, T. (2022). Editorial: Sustainable certification standards: Environmental and social impacts. Frontiers in Sustainable Food Systems, 6. https://doi.org/10.3389/fsufs.2022.922672
Judijanto, L. (2025a). Co-Opetition Dynamics of Palm Oil Producing Countries to Thrive in the Asymmetric Global Palm Oil Market. European Journal of Management, Economics and Business, 2(5), 11–29. https://doi.org/10.59324/ejmeb.2025.2(5).02
Judijanto, L. (2025b). Governance Issues in Sustainability Certification: A Review of Implementation Challenges and Complexities. International Journal of Applied Research and Sustainable Sciences, 3(8), 701–718. https://doi.org/10.59890/ijarss.v3i8.99
Judijanto, L. (2025c). Governance Issues in Sustainability Certification: A Review of Implementation Challenges and Complexities. International Journal of Applied Research and Sustainable Sciences, 3(8), 701–718. https://doi.org/10.59890/ijarss.v3i8.99
Loibl, G. (2021). Chapter 12: Compliance procedures and mechanisms. https://www.elgaronline.com/edcollchap/edcoll/9781786439703/9781786439703.00021.xml
Ma, Y., Liu, Y., Appolloni, A., & Liu, J. (2021). Does green public procurement encourage firm’s environmental certification practice? The mediation role of top management support. Corporate Social Responsibility and Environmental Management, 28(3), 1002–1017. https://doi.org/10.1002/csr.2101
Nupueng, S., Oosterveer, P., & Mol, A. P. J. (2023). Global and local sustainable certification systems: Factors influencing RSPO and Thai-GAP adoption by oil palm smallholder farmers in Thailand. Environment, Development and Sustainability, 25(7), 6337–6362. https://doi.org/10.1007/s10668-022-02306-6
Pererva, P., Kobielieva, T., Kuchinskyi, V., Garmash, S., & Danko, T. (2021). Ensuring the Sustainable Development of an Industrial Enterprise on the Principle of Compliance-Safety. Studies of Applied Economics, 39(5). https://doi.org/10.25115/eea.v39i5.5111
Rahutomo, A. B., Karuniasa, M., & Frimawaty, E. (2025). Enhancing farmers’ land productivity through sustainable palm oil certification: Strategies for promoting environmental and economic benefits in agricultural practices. Journal of Agrosociology and Sustainability, 2(2), 97–112. https://doi.org/10.61511/jassu.v2i2.2025.1131
Rossi, C., Shen, L., Junginger, M., & Wicke, B. (2024). Sustainability certification of bio-based products: Systematic literature review of socio-economic impacts along the supply chain. Journal of Cleaner Production, 468, 143079. https://doi.org/10.1016/j.jclepro.2024.143079
Schleifer, P., & Sun, Y. (2020). Reviewing the impact of sustainability certification on food security in developing countries. Global Food Security, 24, 100337. https://doi.org/10.1016/j.gfs.2019.100337
Stranieri, S., Varacca, A., Casati, M., Capri, E., & Soregaroli, C. (2021). Adopting environmentally-friendly certifications: Transaction cost and capabilities perspectives within the Italian wine supply chain. Supply Chain Management: An International Journal, 27(7), 33–48. https://doi.org/10.1108/SCM-12-2020-0598
Suhardjo, I., & Suparman, M. (2025a). Harmonizing sustainability certification standards: The Indonesian palm oil case. https://doi.org/10.22434/ifamr.1218
Suhardjo, I., & Suparman, M. (2025b). Harmonizing sustainability certification standards: The Indonesian palm oil case. https://doi.org/10.22434/ifamr.1218
Unachukwu, V. T. (2024). RSPO certification scheme: A governance tool for smallholders in the Indonesian palm oil industry? [Memorial University of Newfoundland]. https://hdl.handle.net/20.500.14783/13099
Wen, H., & Lee, C.-C. (2020). Impact of environmental labeling certification on firm performance: Empirical evidence from China. Journal of Cleaner Production, 255, 120201. https://doi.org/10.1016/j.jclepro.2020.120201
Younis, H., & Sundarakani, B. (2019). The impact of firm size, firm age and environmental management certification on the relationship between green supply chain practices and corporate performance. Benchmarking: An International Journal, 27(1), 319–346. https://doi.org/10.1108/BIJ-11-2018-0363
Zainal Abidin, M. N., Abdul Fatah, F., Noor, W. N. W. M., & Aris, N. F. M. (2024a). A review on adoption of the Malaysian Sustainable Palm Oil (MSPO) certification scheme. IOP Conference Series: Earth and Environmental Science, 1397(1), 012035. https://doi.org/10.1088/1755-1315/1397/1/012035
Zainal Abidin, M. N., Abdul Fatah, F., Noor, W. N. W. M., & Aris, N. F. M. (2024b). A review on adoption of the Malaysian Sustainable Palm Oil (MSPO) certification scheme. IOP Conference Series: Earth and Environmental Science, 1397(1), 012035. https://doi.org/10.1088/1755-1315/1397/1/012035
