Every year on World Olive Tree Day, we celebrate the olive tree as a symbol of peace and cultural heritage across diverse regions. It is a day to honour not only the tree itself, but also the communities and traditions that have grown around it for centuries, as well as the precious oil produced by its fruit. This oil sustains and brings together families and contributes to good nutrition around the world. Yet behind the beauty and symbolism of olive cultivation lies a pressing challenge: how to lower the environmental impact of olive oil production?
From waste to resource: the tree that keeps on giving
Across the Mediterranean region, the olive oil processing sector is facing increasing pressure due to the by-products generated from olive oil production and their impact on the environment. If untreated or poorly managed, they can lead to soil and water pollution, and greenhouse gas emissions. These by-products, however, which include olive pits and olive mill wastewater, are far from worthless. They are valuable compounds, rich in organic matter that can be used as bioenergy, soil enhancers and even health-promoting extracts. Turning this challenge into an opportunity is essential for making the olive oil sector more sustainable and profitable.
The European Bank for Reconstruction and Development (EBRD) and the Food and Agriculture Organization of the United Nations (FAO) have provided support to the olive oil sector across the southeastern Mediterranean for the past ten years, and that support falls under a broader push to help countries develop more resilient, inclusive and sustainable industries. Their efforts have included training sessions on good farming and milling practices, study tours in Italy and Portugal, and international exchanges with countries such as Jordan, Morocco, Spain, and Türkiye. Under their joint initiative, ‘Agrifood Climate and Environmental Sustainability (ACES)’, the EBRD and FAO led a recent e-dialogue on ‘Improving the Sustainability of Olive Oil Processing’. This event brought together mill operators, cooperatives, technology providers, and researchers to explore practical ways to turn olive oil by-products, such as olive mill wastewater and pomace, into valuable resources rather than costly waste. The e-dialogue was an opportunity for stakeholders to share tested practices, explore emerging solutions and identify the enabling conditions required to support green innovation across the sector.
Innovations and market shifts across the Mediterranean
When it comes to olive oil processing, there are two different technologies that determine the waste products produced. Modern two-phase mills produce a thick paste rich in polyphenols and organic matter. With the right processing, this paste can generate biogas for heat and electricity. One Italian cooperative shared its experience investing in filters that dramatically reduced waste volume and allowed them to sell polyphenol extracts, although they noted that market prices for these extracts can fluctuate, making investments risky.
Older three-phase mills, on the other hand, generate wastewater and leave behind pomace – olive pits and skins – that can be used for biofuel production, pomace oil extraction, composting or animal feed.
Innovative projects are already underway. During the e-dialogue, participants heard how in Morocco, Spain and Tunisia, a pilot initiative is testing technology that converts pomace and wastewater into electricity, heat and biochar (a charcoal-like material that improves soil health). In Tunisia, for example, a simpler approach has shown promise: spraying wastewater over soil to enhance fertility and boost olive yields.
National strategies and market dynamics strongly influence current practice and incentives across the region. In Jordan, wastewater from three-phase mills is sent to government-run evaporation ponds, costing mill operators five to eight dollars per cubic meter. In Spain, on the other hand, large biorefineries buy two-phase mill waste for anaerobic digestion, paying mill owners between fifteen and thirty euros per tonne of olives processed. This enormous shift, from paying to dispose of waste to earning revenue from it, illustrates the potential of a circular economy model.
Looking towards a circular bioeconomy
The future of a circular bioeconomy in the olive oil sector hinges on overcoming several intertwined challenges. First, markets for high-value extracts like polyphenols must be expanded and stabilized to attract sustained investment, and millers need clear, practical guidance on the available technologies and support to bring solutions into operation. Equally important is a mindset shift among all stakeholders so that by-products are recognized as valuable resources rather than costly waste. Stronger partnerships between researchers and industry will help move proven technologies from the pilot stage to full-scale deployment.
FAO and EBRD will continue the conversation with two upcoming e-dialogues – one focusing on farm-level sustainability and another on downstream challenges such as logistics and market development. These discussions will feed into future initiatives and help shape a more resilient, environmentally friendly olive oil sector.
International Conference on Sustainability in Olive Cultivation
On this World Olive Tree Day, this conversation links directly with the insights shared at the International Conference on Sustainability in Olive Cultivation, held on 25-26 September 2025 in Úbeda, Spain. The conference brought together leading researchers, technical experts and institutional representatives to validate the e-dialogue’s findings and showcase cutting-edge research on soil health, biodiversity and the links between olive oil quality and environmental performance.
At the heart of the transition to more sustainable olive oil production are the industry actors themselves – processors, cooperative managers and agribusinesses – who must act as practical innovators. The successful uptake of these practices will depend on identifying cost-effective approaches that fit local processing systems, waste profiles and regulatory frameworks. By aligning environmental, technological and economic priorities, the olive oil sector can transform its by-products into new revenue streams and build a resilient, truly circular bioeconomy.
Want to know more?
For recent examples of projects active in the olive oil sector and supported by the EBRD and FAO, see the project pages for Jordan, Morocco, Tunisia, and West Bank and Gaza. For an online training course relevant to the olive oil sector, see Biosafety measures for olive oil value chain operators.