Launch of world’s first carbon-neutral palm oil: The long-awaited gamechanger for sustainability?

The global palm oil industry is at a critical crossroads, with growing pressure from consumers, regulators and environmental groups to adopt more sustainable practices. As part of this momentum, Daabon UK – a division of the Daabon Group, a global leader in sustainable agriculture – has announced the launch of the world’s first carbon-neutral organic palm oil.

This development sets a significant precedent for the bakery and snacks sectors, offering manufacturers an opportunity to align with the increasing demand for eco-friendly ingredients while enhancing their sustainability credentials.

A milestone in sustainable palm oil

Traditional palm oil faces significant criticism due to its environmental impact, particularly deforestation, biodiversity loss and high carbon emissions associated with conventional production methods. Despite its widespread use in the bakery and snacks sectors for its versatility and cost-effectiveness, growing regulatory pressures like the EU Deforestation Regulation (EUDR) and increasing consumer demand for sustainable ingredients are pushing producers to seek alternatives.

Daabon’s carbon-neutral organic palm oil – produced at the CI Tequendama SAS mill in northern Colombia – stands out not only for its environmental impact but also for its performance in carbon emissions. Its Life Cycle Assessment (LCA) – calculated using the Ecopalma carbon footprint estimation tool harmonized with ISO 14067 standards – shows a remarkable figure of -977kg CO2eq per tonne, cradle to gate. To put this into perspective, the global average carbon footprint of conventional palm oil is +5,340kg CO2eq per tonne, while even certified sustainable palm oil averages +3,410kg CO2eq per tonne.

This breakthrough makes it an attractive proposition for companies looking to reduce their Scope 3 (supply chain) emissions.

Manuel Davila, MD of Daabon UK and EU, shared the company’s vision with Bakery&Snacks.

“Tackling the carbon footprint is the natural next step in making palm oil truly sustainable – and we’re delighted to have achieved this milestone,” he told this site.

“We genuinely believe that Daabon carbon-neutral palm oil sets the gold standard for sustainability worldwide.”

The bakery and snacks sectors have long faced scrutiny over the use of palm oil due to its association with deforestation and other environmental concerns. The new carbon-neutral palm oil presents an opportunity to change the narrative and drive significant improvements in sustainability. By switching, producers will be making a responsible environmental choice, but will also have the added benefit of building trust with the growing cohort of eco-conscious consumers.

“Consumers in the UK care about sustainability and traceability more than ever,” said Davila.

“As the first product of its kind in the world, the palm oil provides a real opportunity for forward-thinking bakery and snack manufacturers to align their businesses with consumers’ ethics. With its impressive carbon footprint of -977kg CO2eq per tonne, DAABON carbon-neutral palm oil can directly help companies reduce their Scope 3 emissions.”

This could be especially beneficial for brands that are committed to achieving Net Zero emissions or are required to report Scope 3 emissions under Streamlined Energy and Carbon Reporting (SECR) regulations. With sustainability now a core consideration in new product development (NPD), the palm oil could become a key ingredient for brands looking to stand out in a crowded marketplace.

Overcoming challenges to achieve carbon neutrality

The path to creating the carbon-neutral palm oil, however, wasn’t without its challenges. Daabon’s launch is the culmination of a three-decade-long focus on reducing emissions and reusing resources.

“It’s been a real challenge in terms of the sheer scale of the process, setting a new standard while remaining competitive in a global market,” Davila told us.

“Overcoming it is a matter of desire, will and patience – we’ve always been passionate about sustainability and this was a natural part of our journey.

“The solution has been to create a circular process at every step of our operations – from the plantation to the mill.

“This starts with how we treat the land and soil itself – zero deforestation, zero peat, zero fire and certified organic and regenerative agricultural practices. We reuse virtually every kilogram of waste we generate – either as compost for the soil or biomass for our boilers. We have anaerobic digesters and a methane capture and control project that uses palm oil waste, which the UN approves under the Clean Development Mechanism. This powers our operations while enabling us to export power to the Colombian national grid.”

Addressing cost concerns

The cost of switching to carbon-neutral ingredients can be a concern for bakery and snack producers, especially as margins are often tight. And while Daabon’s carbon-neutral palm oil may carry a slight premium, Davila emphasized the long-term benefits.

“While carbon-neutral palm oil may come at an affordable premium due to the enhanced sustainability practices and standards involved, its long-term benefits can outweigh these costs. Our palm oil is a top-quality, premium product – it’s certified organic and offers exactly the same performance as conventional palm oil.”

This means manufacturers can support their sustainability goals without sacrificing product quality. In fact, Daabon also offers an organic, carbon-neutral high-oleic palm oil, which provides enhanced performance in certain applications compared to conventional palm oil.

Reducing the carbon footprint

The Life Cycle Assessment (LCA) of the carbon-neutral palm oil was a meticulous process.

“The process analyzed emissions from every stage of palm oil production, from cultivation to the mill,” said Davila.

“Specific steps included organic farming techniques, which reduce emissions associated with the non-use of chemical fertilizers or pesticides, and energy-efficient practices at the mill, such as methane capture and biomass-fueled boilers.”

Daabon also heavily investment in regenerative agricultural practices and carbon capture initiatives, which have significantly reduced its environmental impact and lowered its carbon footprint well below industry averages. The company also holds a series of sustainability accreditations – including RSPO, Fair Trade, Regenerative Organic Certification, Organic Certification, and Non-GMO Project – as is a signatory of The Climate Pledge.

Navigating the new regulatory landscape

As the EU prepares to implement the European Union Deforestation Regulation (EUDR) – despite being pushed back a year – and with similar legislation expected in the UK under the Forest Risk Commodities (FRC) regulation, the demand for sustainable and traceable palm oil is set to increase.

According to Davila, Daabon’s carbon-neutral palm oil is not only compliant with these regulations but also sets a new standard for sustainability in the industry.

“EUDR and its upcoming UK equivalent will undoubtedly affect the market,” he told Bakery&Snacks.

“Although EUDR doesn’t apply to the UK, many food manufacturers will look to implement it as a de facto industry standard, especially if they sell into the EU market. Although there is probably enough EUDR-compliant palm oil available to meet EU and UK demand, the same is not true of palm kernel oil, where there simply isn’t the same level of supply chain traceability or certified sustainable supply. Even though it seems possible that EUDR may be delayed, our advice is simple – if you need EUDR-compliant palm kernel oil, you need to secure supply now, as there may not be enough to go around.”

He added, “Thankfully, all DAABON palm oil and palm kernel oil is EUDR compliant and we can provide customers with all the data they need to prove compliance.”

Aligning with consumer demand

Daabon’s carbon-neutral palm oil taps directly into consumer trends towards eco-conscious and ethical consumption – something the bakery and snacks sectors cannot afford to ignore.

“As more consumers prioritize brands with strong environmental commitments, bakery and snack companies incorporating our carbon-neutral palm oil can leverage this trend to build trust and loyalty.”

“Palm oil’s carbon footprint can vary massively, depending on where and how it is grown and processed. By introducing organic, carbon-neutral palm oil, we’re pushing the conversation and standards forward once again.”

The launch is more than just a technological achievement – it’s a symbol of the industry's potential to evolve. With the growing importance of sustainability, traceability and carbon reduction, producers that embrace this innovation will be well-positioned to meet the demands of the future, driving not only environmental progress but also brand differentiation in an increasingly competitive market.