Agriculture contributes to 13.5% of worldwide greenhouse gases (GHG) emissions (IPCC 2007). The emissions from this sector are mainly in the form of nitrous oxide (N2O) (46 %), followed by methane (CH4) (45%) and Carbon dioxide (CO2) (9%) (Baumert et al. 2005). N2O is classified as long-lived GHG and has a global warming potential (GWP) 300 times higher than that of CO2. The N2O concentration in 2005 was 319 ppb, about 18% higher than its pre-industrial value (IPCC 2007). Oil palm is one of the most rapidly increasing crops in the tropics (Fitzherbert et al. 2008). Malaysia and Indonesia began to dominate oil palm production in 1966 (Poku 2002) and Indonesia has been the largest producer of Crude Palm Oil (CPO) since 2005. In 2006 the country had 4.1 million ha of oil palm plantations or 31% worldwide plantation area (Koh and Wilcove 2008).