Large scale olive oil production has previously been accused of causing damage to the environment, although new research indicates that olive oil production as a whole, actually gives back to the ecosystem more than it takes.
While growing of olive tree crops should be considered highly sustainable as olive trees are generally very hardy, can be grown in dry conditions, requiring less water use than most agricultural crops and often don’t need chemical pesticides to keep bugs away, yet it is the production practices that have been under scrutiny. However, the International Olive Council claims that the negative production effects don’t match up the positive carbon sink effect from olive trees.

According to the International Olive Council (IOC):
We now have evidence that when the appropriate agricultural practices are adopted, the carbon sink effect (or carbon sequestration) from olive trees in the biomass and soil is much higher than the greenhouse gas emissions from the production of one unit (one liter of virgin olive oil or extra virgin olive oil.
The message that the IOC wishes to share with the world and that they plan to propose at a United Nations conference dedicated to climate change to be held in Marrakech in November, is that protection of this crop and consumption of its oil is a positive for the environment makes their very existence an ally in the fight against climate change.
Our message could be that ‘olive oil is both healthy and good for the environment. – IOC
Sources: http://www.oliveoiltimes.com/olive-oil-basics/olive-oil-production-gives-environment-takes/52042
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