The additional 12-month period before the EU’s deforestation regulation is fully implemented, while frustrating for some gives an opportunity for greater readiness
Is the EUDR extension a moment of reprieve or a path to further uncertainty? In the first webinar of a three-part series, experts explored the implications of this delay for businesses, farmers, NGOs and more. From data collection challenges to lessons from the timber sector, the panel discussed who benefits, who is left exposed, and how businesses can prepare for compliance in this complex regulatory landscape.
Key insights were shared by panellists:
Dr Julian Oram, policy director, Mighty Earth
Anastasiya Timoshyna, director of the European programme office, TRAFFIC
Issifu Issaka, cocoa farmer, national president of the Ghana Cooperative Cocoa Farmers Association
Niels Wielaard, founder and CEO, Satelligence
The discussion, moderated by Innovation Forum’s Ian Welsh, focused on the regulation’s current landscape, its implications for global supply chains, and what businesses and stakeholders need to do to stay compliant. Below is a summary of the key insights and discussions from the webinar.
The webinar began with a poll asking participants about their preparedness for EUDR, which commodity they work with and their biggest concern about EUDR implementation. Click here to see the results. The following themes emerged from the results:
The majority of companies are only partially prepared to adapt to EUDR requirements.
The biggest concerns are uncertainty around guidelines and the impact on smallholder farmers.
The state of play
“This delay is not just about time – it risks undermining the market for those who’ve worked hard to prepare.”— Julian Oram, Mighty Earth
Industry leaders have made significant strides toward compliance with the EUDR, but not all companies have the resources or commitment to keep pace. While frontrunners are advancing traceability and sustainability measures, smaller players and smallholder farmers may struggle without adequate support. NGOs are essential here, bridging the gap for smallholders by helping them navigate EUDR requirements and avoid a two-tier system that could exclude smaller producers from European markets.
Julian Oram of Mighty Earth emphasised this disparity, noting that while some companies are ready, many lag behind due to limited resources or a lack of top-level commitment. He cautioned that without dedicated support for smallholders, the compliance process could indeed result in a two-tier system that risks shutting them out of European supply chains.
More collaborative data sharing
“Data duplication can strengthen trust, but it also creates inefficiency. We need more collective efforts across companies to avoid reinventing the wheel with mapping and monitoring.” — Niels Wielaard, Satelligence
Panellists explored the operational complexities of EUDR compliance, including data collection, deforestation mapping, and the inclusion of smallholders. Efforts to map and monitor deforestation risks through satellite data are underway, but the path remains challenging, with small producers facing obstacles in meeting the regulation's stringent standards.
The regulation's data demands can lead to redundancy, as multiple companies map the same fields. Satelligence’s Niels Wielaard explained that “data duplication also strengthens trust”, but efficiency could be improved with shared platforms and greater transparency.
Platforms and industry collaborations. such as the World Cocoa Foundation and the Global Platform for Sustainable Natural Rubber, are already fostering collective action among stakeholders. These platforms aim to reduce redundancies and streamline data management efforts. Increased transparency in shared data across stakeholders would enable more efficient resource use and minimise unnecessary costs.
Satelligence is a satellite-based technology company. Niels outlined how satellite data is crucial in deforestation monitoring. Platforms such as Satelligence provide tools to zoom in on specific areas, such as palm oil plantations and soy fields, to track deforestation patterns. Deforestation driven by soy production in Brazil has increased since 2020, contrary to some media reports. Satellite mapping allows companies to engage with suppliers, identify deforestation risks, and create more transparent supply chains. However, the regulation’s effectiveness will depend on how customs authorities handle the data submitted by companies.
A significant challenge lies in documenting compliance. Companies in high-risk areas such as Brazil face unique obstacles in proving compliance with the EUDR. By collaborating closely with national bodies, such as EU delegations and industry associations, companies can access the guidance and financial support necessary to meet the regulation's demands.
Lessons from the timber sector
“The EUDR builds on years of experience in the timber sector, where due diligence regulations have shown that international standards can work. It’s a challenging model, but it has proven that with effective implementation, these regulations can make a real difference.”— Anastasiya Timoshyna, TRAFFIC
The timber sector provides a useful model for compliance, having already navigated the EU Timber Regulation (EUTR), which enforces due diligence within the industry. Anastasiya Timoshyna from TRAFFIC, an NGO with experience in timber and wood products, highlighted that the EUTR’s due diligence requirements have set a successful precedent for improving traceability and transparency within an industry.
This regulation has improved traceability and sustainability standards, demonstrating that effective implementation of international standards can enhance governance and legality.
Insights into cocoa farming
“Cocoa farmers cannot expand further into forests, so the solution lies in technological support to maximise yield on existing land. But there’s little in the regulation that addresses this need for smallholders.” — Issifu Issaka, Ghana Cooperative Cocoa Farmers Association
Cocoa farming is deeply intertwined with both economic livelihoods and environmental sustainability, particularly in west Africa, where much of the world’s cocoa is produced. As the EUDR takes shape, it introduces both challenges and opportunities for cocoa farmers who are now grappling with new requirements around deforestation-free supply chains.
One of the primary concerns for cocoa farmers is the restriction on land expansion. With deforestation limits enforced, cocoa farmers are required to work within their existing plots. However, this brings new difficulties: soil depletion and reduced productivity over time mean that farmers must find ways to maintain or increase their yields without expanding. This reality underscores the need for technological and agricultural innovations to improve productivity sustainably, allowing farmers to thrive without compromising forested areas.
Youth disengagement
“The youth are running away from the cocoa sector because they see it as unproductive. The sustainability of cocoa farming is at risk without meaningful support for farmers to improve their livelihoods.” — Issifu Issaka
The economic sustainability of cocoa farming is another critical factor, especially because of low income levels that can make it challenging for farmers to invest in sustainable practices. Many young people, viewing cocoa farming as unprofitable, are increasingly opting out of the sector, which risks the long-term viability of the industry.
Addressing these economic challenges is essential to encourage youth participation in agriculture and ensure the continuity of cocoa production. Issifu Issaka emphasised: “If the youth see cocoa farming as unproductive, they will abandon it. For sustainability, the regulation must not only protect forests but also improve livelihoods for cocoa farmers.” Increasing access to education, healthcare and financial incentives could motivate younger people to stay in agriculture.
Local NGOs are also instrumental in supporting smallholder farmers as they navigate the EUDR requirements. By offering training and resources, these organisations help farmers integrate agroforestry practices, adopt better soil management, and understand compliance requirements. Strengthening the role of these NGOs and including them in the regulatory process allows cocoa farmers to access the information and tools they need to meet the standards while improving their livelihoods.
For cocoa farmers, complying with EUDR is about more than meeting regulatory standards – it’s about creating a sustainable future for their communities and the ecosystems they rely on. The regulation presents an opportunity to reshape cocoa farming into a resilient and environmentally responsible sector, but this transition requires comprehensive support, from policy incentives to on-the-ground assistance, to ensure it benefits farmers as much as it benefits the environment.
Key takeaways: what companies need to do
As the EUDR evolves, businesses must prioritise a number of factors.
Documenting compliance: Maintaining robust records to prove compliance, especially in high-risk areas.
Leveraging satellite technology: Advanced satellite mapping, combined with on-the-ground data, can help track compliance and reduce risks.
Engaging with farmers: Involving farmers in the regulatory process and using their knowledge can help ensure the long-term sustainability of supply chains.
Collaborating for success: Industry-wide collaboration is key to reducing inefficiencies, streamlining reporting processes and enhancing transparency.
Moving forward with confidence
“EUDR is difficult but doable. It’s so important now for politicians to lock in this groundbreaking regulation and deliver. We need to keep the faith that this will protect forests and transform supply chains.” — Julian Oram, Mighty Earth
While EUDR’s stringent requirements are challenging, the regulation is seen as an internationally relevant, unprecedented effort that could protect forests and reduce deforestation across multiple sectors. Anastasiya Timoshyna summed up the regulatory journey: “While complex, EUDR is unprecedented in its global relevance and potential impact. Stakeholders must continue striving to make this groundbreaking regulation work”.
Despite challenges, the discussion emphasised that the EUDR is an opportunity for companies to align their practices with global sustainability goals. While the regulation’s implementation may take time, the efforts already underway in many sectors will play a crucial role in shaping a deforestation-free future. The key takeaway was the importance of continued commitment, collaboration, and technological innovation in meeting EUDR requirements.
