The convergence of geopolitical instability and climate-related shocks has intensified the need for resilient food systems grounded in the regenerative principles of the Circular Economy (CE) while advancing the United Nations Sustainable Development Goals (SDGs). In the oil palm industry, despite progress in sustainability governance, prevailing Business-as-Usual (BAU) biomass management practices continue to contribute to soil ecosystem degradation and declining crop productivity. Addressing a critical gap in the existing scholarship, this study proposes a novel strategic CE doctrine for the Malaysian oil palm sector that extends beyond conventional waste management paradigms by integrating principles of Regenerative Agriculture (RA). Unlike existing studies that treat biomass treatment, soil biotechnology interventions, and regenerative agriculture as separate domains, this research integrates these perspectives by empirically demonstrating how precision-produced, microbially enriched bio-organic fertilisers derived from palm biomass residues can support systemic soil ecosystem restoration. The study combines techno-economic barrier analysis with a cradle-to-cradle lifecycle assessment to examine how institutionalised circular resource flows between upstream processors and farmers can simultaneously mitigate emissions and enhance yields. Using a mixed-methods approach, including case study analysis, literature review, and stakeholder interviews. The findings indicate that, relative to the BAU scenario, the proposed framework can reduce emissions by approximately 4.9 tCO 2 e per hectare annually and increase yields by over 2 metric tonnes per hectare. The CE doctrine offers a scalable model applicable to other residue-intensive agricultural systems, although implementation depends on enabling policies, coordinated stakeholder collaboration, and catalytic carbon-transition finance. • Structural barriers and a mill-estate operational disconnect block a true circular economy for palm oil biomass. • A CE doctrine upcycling biomass to bio-fertiliser boosts crop yields by >2 MT/ha and cuts GHG emissions by >4.9 tCO 2 e/ha. • High-CFU (>10 9 ) bio-organic fertiliser is the crucial tipping point for reversing soil degradation, unlike basic composting. • The current system paradoxically excludes smallholders, who stand to gain the most from a regenerative model. • Scaling this CE model requires a public-private partnership supported by policy, carbon finance, and capacity-building.
Lim et al. (2026) studied this question.