Oil palm (Elaeis guineensis) is a uniquely valuable palm as source of low-cost vegetable oil. However, the success and method of its expansion (monoculture plantation) especially in biodiversity-rich Indonesia and Malaysia have made it one of the most controversial crops of the world. One of the policy consequences of the boycotts and debate is the Renewable Energy Directive (RED) of European countries, defining binding targets for the emission savings to be achieved when vegetable oils are used as feedstock for biofuel. Exporting countries such as Indonesia need to have reliable data on the carbon footprint of their product across production systems and the products’ lifecycle. Diversification of oil palm plantations starts to gain attention as a strategy to increase farmer resilience. This thesis presents the carbon footprint of palm oil production in Indonesia and explores intensification and diversification (intercropping) as strategies to increase farmer resilience and reduce the carbon footprint.