Brussels –\u00a0Palm oil producers are calling for clarity from the European Union on the implementation of its Deforestation Regulation (EUDR), as political uncertainty mounts after Austria\u2019s call to \u2018stop the clock\u2019 on the regulation\u2019s timeline.<\/p>\n
A high-level delegation from the Council of Palm Oil Producing Countries (CPOPC), led by Secretary-General Izzana Salleh, recently concluded a mission to Brussels, warning that the absence of a clear direction risks undermining compliance efforts and market stability.<\/p>\n
Across a series of meetings, the delegation underlined that while palm oil-producing countries fully support the regulation\u2019s environmental goals, its rollout must be practical and fair, especially for the communities that depend on palm oil cultivation.<\/p>\n
Progress is real<\/strong><\/p>\n CPOPC highlighted that producer countries have substantially advanced their readiness, with companies aligning their systems to meet the regulation \u2013 something no other commodity can claim.<\/p>\n Malaysia\u2019s e-MSPO platform, built around automated documentation and blockchain-style verification, was presented as a cost-effective model for transparent due diligence. Indonesia\u2019s ISPO certification program has also expanded significantly, with more than 6.2 million hectares certified as of early 2025.<\/p>\n But despite the progress, the delegation said operators still face unresolved technical and operational challenges.<\/p>\n These include data-format constraints such as the shapefile size cap that limits full geolocation datasets, and long export lead times that may result in consignments reaching EU entry points months after their initial order dates, complicating treatment under the new rules.<\/p>\n Industry advisor Pietro Paganini, who joined discussions, described the EUDR as accelerating \u201can irreversible transformation\u201d of supply chains, driven by AI, drone monitoring, satellite imaging and digital traceability platforms. These tools, he noted, are now \u201cstrategic assets\u201d, enabling a higher degree of verification across the sector.<\/p>\n Social impacts at the forefront<\/strong><\/p>\n CPOPC repeatedly stressed that environmental objectives cannot be met by shifting the burden to those least equipped to comply. The delegation warned that complex requirements risk penalizing smallholders and threatening livelihoods in producing regions, ultimately weakening the regulation\u2019s effectiveness.<\/p>\n At the same time, producer countries argued that palm oil also has \u201cgood stories to tell\u201d and should not be overshadowed by other commodities in the EUDR debate. They said the EU should recognize progress already achieved across the sector, emphasizing that palm oil is part of the solution rather than the problem.<\/p>\n Producing countries have invested heavily in sustainability at the national level, but cautioned that the EU\u2019s approach must respect the fact that there is not just one definition of sustainability.<\/p>\n Delegates also pointed to official data showing that deforestation rates in Malaysia and Indonesia have been declining, which demonstrates meaningful alignment with the EUDR\u2019s core objectives.<\/p>\n Concerns were echoed by European stakeholders. In talks with CPOPC, COPA-COGECA \u2013 representing European farmers and cooperatives \u2013 cautioned that compliance systems must reflect real-world constraints faced by farmers globally.<\/p>\n The European Cocoa Association (ECA) also warned that long and complex supply chains may not be able to adapt within the proposed timelines.<\/p>\n Openness amid tension<\/strong><\/p>\n In meetings with the European Commission\u2019s environment directorate, CPOPC welcomed the Commission\u2019s efforts to maintain constructive engagement, noting the importance of sustained cooperation through the Ad Hoc Joint Task Force to align regulatory requirements with realities on the ground.<\/p>\n The Commission\u2019s trade section also signalled its commitment to ensuring continuity, pointing out that disrupted exports would affect European markets.<\/p>\n