A road map to net zero for Sri Lanka’s plantation sector

With the heighted consensus on the need for climate change mitigation and adaption, the Sri
Lankan plantation industry is now faced with one of the most consequential transformations in
its 172 year history as a growing segment of the industry plots a course for Net Zero emissions.
With global buyers, financiers and regulators push for low-carbon supply chains, the move
toward net zero has become both an environmental duty and a commercial necessity.

Insights from a recent survey of Regional Plantation Companies (RPCs), point to a sector that
has already moved beyond intent and into action. Collectively, these companies manage
hundreds of estates and represent a substantial share of Sri Lanka’s tea, rubber, oil palm crop
output, making their transition central to the country’s broader climate ambitions.

Renewable Energy as the Entry Point to Net Zero

Energy transformation has emerged as the most advanced pillar of the sector’s net zero journey.
Survey data shows that RPCs have collectively installed over 30 MW of renewable energy
capacity, spanning solar, mini-hydro, biomass, biogas and waste-heat recovery systems, with
total investments exceeding Rs. 5 billion.

Companies such as Talawakelle Tea Estates PLC and Agarapatana Plantations PLC have
invested heavily in mini-hydro projects, generating reliable baseload electricity from estate-level
water resources. Across the sector, several factories now operate with 100% renewable
electricity, while others generate millions of kilowatt-hours annually through a mix of hydro and
solar.

Biomass remains the backbone of thermal energy use. RPCs such as Browns Plantations PLC
and Agalawatte Plantations PLC report that biomass boilers meet 85- 95% of factory heat
requirements, sharply reducing dependence on furnace oil. Solar rooftop systems are
increasingly common across factories, estate offices and housing units.

In parallel, energy efficiency measures are delivering incremental gains at scale. These include
variable speed drives (VSDs) on motors and pumps, waste heat recovery systems, improved
dryer insulation, LED lighting conversions and upgraded boiler systems. While individually
modest, these interventions cumulatively contribute to significant emissions reductions across
large estate portfolios.

Emissions, Targets and Verification

The survey highlights a growing sophistication in emissions accounting and governance. Several
RPCs now measure Scope 1 and Scope 2 emissions, with companies such as Talawakelle Tea
Estates PLC extending coverage to Scope 3 emissions, including logistics and value-chain
impacts.

Further multiple companies align with ISO 14064-1 (Greenhouse Gas Accounting) and ISO
50001 (Energy Management), while some have adopted science-based targets aligned with a
1.5°C pathway.

Digitalisation plays a critical role in this shift. Estate and factory-level dashboards, ERP-linked
energy monitoring and automated reporting systems are enabling RPCs to move from static
reporting to active emissions management. However, Scope 3 emissions. particularly those
linked to inputs, transport and downstream markets, remain a sector-wide challenge, highlighting
the need for collective frameworks rather than isolated company action.

Linking Climate Action with Communities and Conservation

The plantation sector’s net zero pathway is inseparable from land use and community wellbeing.
Survey responses indicate expanding investments in biodiversity conservation, watershed
protection and carbon sequestration, with RPCs collectively managing land under conservation
zones, riparian buffers and biodiversity corridors.

Tree planting and agroforestry programmes are widely implemented to enhance carbon sinks,
stabilise soils and improve microclimates. Several companies have allocated dedicated fuelwood
plantations, reducing pressure on natural forests while ensuring sustainable biomass supply.

RPCs have undertaken the distribution of energy-efficient cookstoves, improved housing energy
systems and water conservation infrastructure across estate communities, delivering both carbon
and welfare gains. Improved firewood management systems, vehicle efficiency programmes and
routine equipment maintenance further reduce indirect emissions.

Collaborations with Sabaragamuwa University, Wayamba University, the University of Peradeniya and other institutions have supported carbon footprint assessments, biodiversity studies and regenerative
agriculture pilots, strengthening the evidence base for long-term decision-making.

Toward a Coherent Sector-Wide Roadmap

Sri Lanka’s plantation sector is not starting from zero. But progress remains uneven, shaped by
disparities in access to capital, grid infrastructure and technical expertise. High upfront
investment costs, regulatory uncertainty around renewable energy integration and limited access
to concessional green finance continue to constrain scale.

As the apex representative body, the Planters’ Association views the transition to net zero as a
shared national undertaking, one that requires policy certainty, targeted fiscal incentives and
blended financing mechanisms to move onto the next phase of decarbonisation. Harmonised
emissions reporting standards and sector-wide benchmarks will be critical to moving from
fragmented initiatives to systemic transformation.

In a global marketplace where sustainability increasingly determines market access, the cost of
inaction is rising. With credible data, demonstrated investments and a growing culture of
accountability, Sri Lanka’s plantation sector has the opportunity to position itself as competitive,
resilient and climate-aligned.

The road to net zero will be complex and capital-intensive. But the foundations are already in
place. With coordinated action, the plantation sector can turn climate ambition into long-term
economic and environmental value, for the industry, its communities and the country as a whole.