Enabling the Circular-Bioeconomy through Palm Oil Biomass: A Review of Industrial Innovations, Policy Frameworks, and Market Integration

An article discussing the role of oil palm biomass in driving the transition towards a circular bioeconomy, in line with the increasing global demand for low-carbon and resource-efficient production. This research aims to synthesize technological innovations, policy frameworks, and market mechanisms that enable the utilization of palm waste into energy sources and value-added products. The method used is a Systematic Literature Review (SLR) of 38 scientific articles from the period 2021–2025 from the Scopus database. The study results indicate that palm residues such as empty fruit bunches, shells, fibers, and liquid waste can be processed into bioenergy, bioplastics, biochar, and bio-based chemicals through biorefinery technology. However, large-scale implementation still faces challenges such as fragmented regulations, infrastructure limitations, and suboptimal market integration. This study emphasizes the importance of synergy in technological innovation, coordinated policies, and market strengthening to make palm biomass a pillar of the circular economy and industrial decarbonization.