The growing global emphasis on climate action and sustainable development has placed palm oil at the centre of both opportunities and controversies. Recognised as a key economic driver for rural communities in developing nations, palm oil production is simultaneously unfairly scrutinised for its environmental and social impacts. This study aims to examine the role of palm oil in advancing climate goals and promoting sustainable rural development. Utilising a qualitative literature review method, this research analysed more than 80 peer-reviewed articles, policy papers, and institutional reports published between 2015 and 2025. Data were collected systematically through Mendeley Desktop, focusing on thematic categories such as economic contribution, environmental effects, social outcomes, and policy governance. The analysis was conducted using a comparative content approach to synthesise findings across diverse contexts. The results indicate that palm oil significantly boosts rural income, employment, and public service access, particularly in countries like Indonesia and Malaysia. Simultaneously, it presents environmental trade-offs, including deforestation and biodiversity loss, although recent sustainability certifications and agroecological practices show promising mitigation potential. Socially, palm oil enhances livelihood security but is also sometimes unfairly associated with labour rights concerns and land tenure disputes. In conclusion, palm oil can be a strategic tool for climate and development goals if governed through inclusive, transparent, and sustainable frameworks. Future research is recommended to focus on jurisdictional governance models and innovations in low-carbon production systems to strengthen the sustainability of the sector.
Loso Judijanto (Wed,) studied this question.
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