The future of palm oil as a primary vegetable oil is promising as global demand for food increases. Consequently, it is foreseen that the conflict between agriculture and conservation will intensify. Consumers and environmentalist particularly in the West are concerned about the environmental impacts of oil palm cultivation, particularly its suggested role in deforestation, climate change and biodiversity loss. In order to continue promoting palm oil, particularly to the concerned Western consumers, an alternative approach is suggested – by linking market incentives with conservation. This paper focuses on tapping into one such method of creating a premium market for the wildlife-friendly eco-labelled products using flagship species such as the orang-utan or tiger. Consumers’ willingness to pay for wildlife-friendly palm oil products provides for industry involvement of conservation and sustainability. The challenges and opportunities of implementing such eco-labels on palm oil products are discussed.
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