Singapore’s Golden Agri-Resources, a holding of the controversial pal oil giant, Sinar Mas Group, said it will form a partnership with the government of Liberia to establish a 220,000-hectare plantation in the West African nation.

The Sinar Mas Group was one of the biggest casualties of the campaign lead by environmental group Greenepeace, which highlighted the environmental damage being caused in Indonesia by the Palm Oil Industry. Sinar Mas were singled out as one of the main offenders, with evidence showing that huge and irreparable damage had been done to the once-extensive rainforests of Indonesia. One of the most shocking facts that emerged was that the level of deforestation had caused the mostly undeveloped nation of Indonesia to become one of the highest net producers of carbon dioxide in the world.

Sinar Mas Group is now facing the prospect of limited future expansion under Indonesia’s proposed moratorium on peatland and natural forest conversion. The moratorium is part of the government’s partnership with Norway to reduce greenhouse gas emissions from deforestation and degradation. The moratorium is set to take effect in 2011.

As for Golden Agri-Resources, it too faces mounting criticism from green groups over its environmental performance in Indonesia. Last week Burger King announced it would sever ties with PT Smart, a subsidiary of Golden Agri-Resources, after an audit showed the firm had cleared tropical rainforest and peatlands in Borneo and Sumatra in violation of Indonesian law and the company’s own standards.

Unfortunately, as is so often the case with multinational corporations, when legislation closes a door in one place, another door is opened almost instantly.

The country of Liberia is one of the quickest-developing countries in Africa. Since the brutal civil war that had raged since 1989 came to an end in 2003, its economy surged 21.8% in 2005 and steadily grown 7.8% and 9.4% in 2007 and 2008 respectively.

Last year Sime Darby, a Malaysian palm oil producer, said it would invest $640 million in Liberia’s palm oil sector, which is currently limited to domestic consumption. Golden Agri-Resources is betting its improved genetic stock and efficient cultivation techniques can substantially boost the productivity of Liberian plantations.

Liberia has almost half of the last rainforest in west Africa, which once reached from Guinea to Togo and is home to most of the surviving wildlife too. But pressure on the forest is growing. Driven by rising population, villagers are extending their clearings to grow more crops and collect firewood. If there is an influx of palm-oil producers, then the remaining rainforest could come under increased pressure.

With climate change swiftly becoming a more immediate concern, developed countries’ governments are facing increased lobbying to provide subsidies for developing countries such as Liberia.

The situation emerging in Liberia could help to push through such arrangements, with the potentially lucrative investments of palm-oil producers likely to sway the Liberian government away from any altruistic desire to protect its remaining rainforests.

If you want to do something to help protect the world’s rainforests, then one of the best options is to become a member of the WWF. For just a small monthly donation, you can help to ensure that WWF has the resources to lobby governments, push for change in environmental law and put in place projects that give crucial protection to endangered species and ecosystems. Just click the button below to find out how much of a difference you could make.