RSPO Remediation and Compensation Procedure (RaCP)

RSPO RaCP aims to deal with land clearing and development of oil palm plantations by RSPO (Roundtable on Sustainable Palm Oil) members since November 2005. Any land clearing and development of an oil palm plantation without carrying out an HCV (High Conservation Value / HCV) assessment during a certain period is mandatory to conduct a Land Use Change Analysis (LUCA) to calculate environmental liabilities, determining how much remediation and compensation must be carried out. RaCP provides a mechanism for restoring clearance of HCV areas and compensating for the loss in conservation values. 

Prior to undertaking these procedures, plantation owners need a concept note and compensation plan approved by the RSPO. The concept note and compensation plan will be approved by the RSPO if they meet the principles of the RSPO RaCP. Concerns have now been raised about the transparency of the process and the accountability of companies in meeting their remediation and compensation obligations. Furthermore, defining and measuring “Net Positive Impacts”: Establishing clear and measurable criteria to determine whether remediation and compensation efforts are truly achieving “net positive” environmental and social outcomes is challenging. The need for compensation locations is also a challenge for RSPO members due to limited land availability so some compensation activities are carried out outside the oil palm plantation permit area.

Gaia has experience in designing compensation and remediation activities. Currently, there are more than 3 remediation and compensation activities that Gaia has designed, with total conservation liabilities of more than 5,500 hectares. All compensation activities that Gaia carries out are in village forests that have received management permits based on social forestry. The compensation activities that Gaia is involved in also have an impact on the community managing the village forest. These activities also have a positive impact on the ecology in the village forest where the compensation activities are carried out.