A study conducted by the WWF and SNV Netherlands Development Corporation looking at the  impact of potential biofuel production in Peru has found that oil palm has the most environmental and socio-economic benefits on agricultural areas within the Peruvian Amazon.

Questioned

Despite finding oil palm to be the most profitable crop for small scale producers, when applied to biodiesel production the efficacy of the crop was questioned due to its traditional use in food products and the possible negative impact on food security and prices of derived foods.

Positive

A life Cycle Assessment (LCA) was conducted for biofuel production within the environmental impact portion of the study. Taking energy efficiency and Green House Gas reduction into consideration, as well as other environmental aspects including soil use and degradation, and use of fertilisers and pesticides;  it was found that oil palm and jatropha crops had the most positive environmental impact in agriculture upon already deforested land with scarce vegetation.

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