The Roundtable on Sustainable Palm Oil (RSPO) announced in July 2016 that RSPO’s endorsement of GreenPalm ends December 2016. Instead, the Book and Claim supply chain model will be supported by the trade of RSPO Credits.
What happens when the endorsement of GreenPalm ends?
Once the endorsement of Greenpalm stops in December 2016, RSPO certified volumes can be sold as Credits via the Book and Claim model on the RSPO eTrace platform. Only Credits traded via the RSPO eTrace platform can have a RSPO claim as it will be verified during the RSPO audits. Members who purchase more than 500 credits will need to be audited according to the RSPO rules. Volumes sold via GreenPalm in 2017 are not endorsed by the RSPO and will not be verified during the RSPO audits. Hence, they cannot carry a RSPO claim.
Who can sell what credits in RSPO eTrace from January 2017?
RSPO Certified Mills can sell Certified Sustainable Palm Oil (CSPO) credits. RSPO Certified Palm Kernel crushers can sell Certified Sustainable Palm Kernel Oil (CSPKO) and Certified Sustainable Palm Kernel Expeller (CSPKE) Credits. Independent smallholders (IS) can sell IS-CSPO, IS-CSPKO, and IS-CSPKE credits.
Traders, Processors, Refiners and other actors in the supply chain cannot sell Credits. In order to align the Credit trading with the physical supply chain models, mills will no longer be able to sell CSPKO and CSPKE credits.
When can credits be traded?
Credits can be bought and sold as they become available at the allowance of the certified volume of CSPO for the mill. Crushers have to build up stock by buying certified kernels (PK). Trading will not be based on calendar year but on the license year. P&C and SCC certificates of members can start any day of the year and are valid for the duration of the license period. Hence, credits of a seller become valid from the start date of the certificate and remain valid for one year, when the annual surveillance audit is due. Buyers can purchase credits throughout the year.
Can GreenPalm certificates bought in 2016 carry a RSPO claim?
Yes, Greenpalm certificates bought in the calendar year 2016 can carry a RSPO claim and hence, can be used to cover the palm oil, palm kernel oil and palm kernel expeller used in the products. GreenPalm certificates bought in 2016 can be included in the volumes for Book and Claim supply chain model declared in the ACOP report for the year 2016.
Companies that would like to buy RSPO Credits in 2017 can start to prepare themselves by making sure that they:
- Are an RSPO member;
- Set up UTZ Certified as an approved supplier for payments.
We look forward to your support and cooperation towards a successful implementation of the new RSPO Credit trading platform.