Japan is a large buyer of palm oil and timber products from Indonesia and Malaysia. While the country has promoted sustainability ahead of the 2021 Tokyo Olympics, sourcing policies are still inadequate. Against this backdrop, Japan’s large demand for palm oil and plywood is linked to deforestation and leakage markets for both commodities. Japan is the fourth largest financier of oil palm concessions after Indonesia, Malaysia, and Singapore.
CRR’s recent report on the role of Japan in the global palm oil and timber markets examines the reputation risks that Japanese buyers and financiers of palm oil and timber face.
Youki Mikami of Abovo joins CRR to discuss how Japan’s deforestation links to the palm oil and timber leakage markets.