Decoupling deforestation from the palm oil industry could be achieved by raising the price of palm-based consumer goods by just 1.8%, a new report from risk analysis firm Chain Reaction Research suggests. The research claims this could be achieved if consumer goods companies with higher profit margins, such as Unilever, Procter & Gamble and PepsiCo, raised the price of palm-based products by 0.15% with the additional revenue used to help growers implement zero-deforestation commitments with better monitoring and verification, and provide support for smallholder farmers to grow palm oil without encroaching on forests. Some consumer good companies with higher profit margins, such as Procter & Gamble, could raise the price of products by 0.15per cent to cut forest loss out of their palm oil value chain, while cooking oil brands with smaller margins would have to raise their prices by more, the study finds.

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