Environmental and social problems triggered by the rapid palm oil expansion in the tropics have spurred the proliferation of sustainability certification standards, which are market-based initiatives intended to ensure commodity production is carried out in an environmentally and socially responsible manner. One such certification scheme, the Roundtable on Sustainable Palm Oil (RSPO), aims to mitigate the impact of oil palm production on local communities and ecosystems. While previous work has focused on the environmental impact of RSPO, little is known about its impact on village development and potential trade-offs with environmental goals. To address this gap, we evaluate the impact of RSPO on promoting village development and protecting ecosystems in Kalimantan and Sumatra in Indonesia, the top global oil palm producer. Using observations from 11,000 villages over a period of 11 years, we apply rigorous quasi-experimental methods to quantify impacts along environmental and village development outcomes. We find that relative to noncertified concessions, RSPO resulted in small, often heterogeneous and geographically limited environmental and village infrastructure impacts relative to traditional oil palm concessions. Between environmental and development goals, we identify trade-offs on both islands. While in Kalimantan the impact on population was statistically insignificant, in Sumatra the trade-offs are correlated with a statistically significant decrease in the number of people in the treated villages. By illustrating the heterogeneity of the RSPO impacts, our results have important implications for understanding the mechanisms behind RSPO’s impacts and improving its design.