EUDR for Palm Oil
European Union Deforestation Regulation for Oil Palm
The European Union, a major importer of palm oil, requires strict adherence to sustainability and traceability, impacting all stakeholders, from large companies to small-scale farmers.
Smallholders contribute with almost 40% of the global Palm Oil supply but face disproportionate challenges under the EUDR. Their lack of resources to meet certification standards or to provide detailed traceability could marginalize them from the EU market. They typically operate informally, selling their fresh fruit bunches through intermediaries.
EUDR for Palm Oil, while it presents challenges, it also opens avenues for innovation and progress. By adopting the requirements, the palm oil industry can navigate the complexities of the regulation, ensuring their operations are sustainable, traceable, and future proof.
For farmers, EUDR for Palm Oil requires to certify a commodity as deforestation-free as follows:
- Do not produce on land that was deforested after 2020.
- Collect GPS data on the production area.
- Pass on pertinent information to the business partners.
- Respect land use and labor rights.
Producers, importers, and traders of the EUDR Palm Oil market need to ensure by a due diligence statement the risk of non-compliance is small following 3 steps:
- Collect evidence that the product is deforestation-free.
- Assess risks of non-compliance.
- If risks have been identified, take action to mitigate them.
