RSPO T&T SC Meeting (7 November 2016)

Category: News Published: Thursday, 17 November 2016

Appended below are the salient points for RSPO T&T SC Meeting held on 7 November 2016:- 

1)           The RSPO IT platform is now renamed Palm Trace (Jan 2017) and will include traceability data on IP, SG, MB and B&C models:

          a.      Shipping transactions of CSPO YTD is now 3 million tonnes an increase of 40% over 2015
          b.      All mills are IP certified with very small certified for MB.
          c.      PK shipping transaction is 1.3million tonnes with half MB showing scarcity of PK.
          d.      Traced volume in 2016 is 1.1 million tonnes a 92% increase over 2015 (not compulsory)
          e.      There was a demo of the Palm Trace tool.

 2)           Traceability compliance by smallholders incentivised by lowering cost of certification, facilitate legal compliance, create linkage to supply chain and provide technical assistance.

 3)           Smallholders Credits – two types i.e. linked to mills (through partial management or contract) a.k.a. Smallholder plasma clusters scheme smallholders and independent smallholders.

 4)           Smallholder credits are known to garner better premiums than conventional credits.  The meeting agreed to make available aggregated premium of smallholders vs. conventional credits for reference including Off-Market Deals, OMD).

 5)           No minimum pricing agreed for RSO credits and will be determined by market forces. Fees for managing RSPO credits will be lower than previously under GreenPalm (USD2/MT). Buyers cannot sell credits (unlike GreenPalm days where there is abuse in trading), sellers generally cannot buy credits unless to compensate for oversold position due to under production – this however needs agreement from RSPO.

 6)           Mills can sell CSPK (physical IP, SG, MB) but cannot sell CSPK credits which is only sold by crushers. CSPKO and CSPKE to be sold by crushers only.

 7)           PKO availability Work Group not started. Volunteers are Wilmar and BASF and will be led by the Oleo & Derivatives Work Group

 8)           New RSPO rules for Oleo and Derivatives was approved by SC T&T and will be valid from1 Dec 2016 (transition 6 months) until the SCCS is updated in 2018. This rule will then be incorporated into the SCCS documents. Inke warned that it will be difficult to defend the MB 1:1 rule when compared to other commodity sustainability platforms such as coffee. (Our note : AOMG needs to defend this with facts.) Post meeting Jan has requested for AOMG to assist in training CBs in the new rules as we did in 2013.

9)           RSPO RED will be revived next year as per Board of Governors’ request. A working group will be formed (IOI/ Wilmar/ Cargill).  Wilmar highlighted the need to address commercial factors where transaction fees for RSPO RED is USD1.75 vs. USD 0.16 for ISCC.

10)        CB Workshop – 4 CBs per year in Asia focusing mainly on P&C rather than SCCS.

11)        Meeting agreed to use e-gazette system and mailing directly to T&T SC members to improve communication and information sharing.

 12)        New review of SCCS standards and systems to mainly improve clarity rather than rules change has been discussed. This change will not necessitate public comment.

 13)        A multi-site MB cross referencing transfer Work Group is to be formed.

 14)        Harald, BASF has retired from the T&T SC and RSPO Oleo chair and will be replaced by Dr. Tobias Zobel.

 15)        Next telco tentatively scheduled on 16th March 2017 and physical meeting in EU RT June 2017 in either UK/GER.

 

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