The sector of LULUCF (Land Use, Land-Use Change and Forestry) plays an important role in the realm of global greenhouse gas (GHG) emissions. Despite being often forgotten, its contribution cannot be neglected. Data from Olivier et al. (2022) shows that in 2019, the global GHG emissions reached 51.7 Gt CO₂-eq without LULUCF. But if this sector included, the total emissions surged to 58.8 Gt CO₂-eq. It means LULUCF contributes around 7.1 Gt CO₂-eq or 12% of the total.

In European Union (EU), the LULUCF sector has shown a positive trend as carbon absorber. In 2022, this sector managed to absorb up to 236 million tons of CO₂-eq – around 7% of the total annual emissions of EU. It increased to 257 million tons of CO₂-eq in 2023 (EEA, 2023).

But globally, the trend is not yet stable. Extreme phenomenon such as forest fires and El Niño had once made this sector as significant contributor of emissions. In 2024, for example, the  emission from forest fires and deforestation rose up to 4.2 billion tons of CO₂ (Reuters, 2024), an increase of 13.5% compared to that of the previous year. The same year also saw an increase of carbon in the atmosphere at 3.6 ppm, the highest during the history of monitoring in Mauna Loa (The Guardian, 2024).

Entering 2025, Copernicus reported that the year 2024 was the hottest since 1850, with temperature approaching or surpassing the threshold of 1.5 °C for global warming.

Amid global debate about LULUCF, the oil palm plantations were often in the spotlight. But as a matter of fact, oil palm has strategic advantages in the context of emissions and land use:

1. High productivity, more efficient in land use. If compared to soybean, rapeseed, or sunflower, the oil palm can produce oil at 4–10 times higher per hectare per year. It means that to meet the global need of vegetable oil, the oil palm plantations will only need much less land areas. With such land efficiency, new land area opening can be reduced.
2. Due to its potential as carbon sink, the LULUCF does not always result in emissions. If land areas with low carbon stock (such as shrubs) are converted into oil palm plantations, the areas can function as carbon sink. The researches in Southeast Asia show that biomass and oil palm plantations can absorb large amounts of carbon.
3. Contribution to renewable energy. Palm oil can be used as raw material to produce biodiesel (B30, B35, B40 and B50). The biodiesel supports the national energy transition towards clean energy and reduces reliance on fossil fuels, which are the largest contributor of global GHG emissions.
4. Positive Socio-economic impacts. The oil palm plays an important role in developing villages, creating job opportunities, and generating economic growth. If managed well according to the sustainability standard (ISPO/RSPO), then the oil palm has the capacity as a solution of low carbon development.

Why LULUCF crucial?

It is because the sector has the big potential for mitigation. Efforts to reduce deforestation, restore degraded lands, agroforestry, and optimize commodities with high productivity like oil palm can be pursued as an efficient strategy to reduce carbon in the atmosphere.

• LULUCF significantly contributes (~12%) to the global GHG emissions.
• In Europe, this sector can even function as a large carbon sink.
• But extreme climate like the forest fires in 2024 has proven that this sector is vulnerable to being the source of high emissions.
• The oil palm, with high productivity, is potential to become a solution through efficiency of land use, carbon absorption, and as raw material for production of renewable energy.

If it is well managed, including governance of sustainable palm oil, the LULUCF sector can become a game-changer in the efforts of reducing carbon emissions towards reaching global net-zero emission. (*)

Olivier JGJ, Schure KM, Peters JAHW. 2022. Trends in Global CO₂ and Total Greenhouse Gas Emissions: 2021 Summary Report.. European Environment Agency (EEA). 2023. Greenhouse Gas Emissions Data. Reuters. 2024. Global Emissions Spike from Forest Fires and Deforestation. The Guardian. 2024. CO₂ Concentration Hits Record High at Mauna Loa. Copernicus Climate Change Service. 2025. Global Temperature Report.