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Hybrid governance in agricultural commodity chains: insights from implementation of “No Deforestation, No Peat, No Exploitation” (NDPE) policies in the oil palm industry

Should governments be doing more to keep global palm oil value chains sustainable?

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Citation

Larsen, R. K., Osbeck, M., Dawkins, E., Tuhkanen, H., Nguyen, H., Nugroho, A., Gardner, T. A., Zulfahm and Wolvekamp, P. (2018). Hybrid governance in agricultural commodity chains: Insights from implementation of ‘No Deforestation, No Peat, No Exploitation’ (NDPE) policies in the oil palm industry. Journal of Cleaner Production, 183. 544–54

In agricultural commodity value chains, companies with sizeable market shares are stepping up sustainability commitments through so-called “No Deforestation, No Peat, No Exploitation” (NDPE) policies. But delivering on these commitments is fraught with difficulties.

Oil palm plantation on in Borneo, Malaysia, on newly deforested land. Photo: Vaara / Getty Images

Drawing on theories of hybrid public-private governance this paper explores how commodity value chain actors themselves view the limitations of private regulation and the prospects for more effective supply chain governance.

The paper includes data from interviews with actors along the palm oil commodity value chains linking growers in Riau Province, Sumatra with retailers in Europe. The findings demonstrate that actors see shortcomings in the existing arrangements and feel the need for both the Indonesian state and European governments to be more active in governance.

The paper explores potential hybrid governance measures, highlighting the need for a pluralistic strategy that mobilises the combined positive forces of civil society, business and government(s). The authors argue that, to advance such an agenda, hybrid governance must be conceptualized not simply as a matter of blending (and hence reifying) pre-existing and often highly problematic private and public institutions, but as a question of how all such institutions may themselves be more thoroughly democratized in the process.

SEI authors

Rasmus Kløcker Larsen

Team Leader: Rights and Equity

SEI Headquarters

Heidi Tuhkanen
Heidi Tuhkanen

Senior Expert (Green and Circular Economic Transformations Unit)

SEI Tallinn

Profile picture of Agus Nugroho
Agus Nugroho

Programme Manager

SEI Asia

Toby Gardner
Toby Gardner

Senior Research Fellow

SEI Headquarters

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