EUDR and the future of soy and palm oil: challenges, delays, and solutions

• Heleen Van Den Hombergh, senior policy advisor at IUCN NL, coordinator at Collaborative Soy Initiative 
• Michelle Desilets, executive director, Orangutan Land Trust
• Mansuetus Darto, founder and national board, Indonesia's Palm Oil Smallholder Union (SPKS)
• Ruben Brunsveld, deputy director EMEA, Roundtable on Sustainable Palm Oil
• Susanne Fromwald, board member of The Collaborative Soy Initiative, general secretary of Donau Soja  
• Wei Peng, global head of sustainability - grains & oilseeds, Louis Dreyfus Company
• Will Schreiber, representative of the Retail Soy Group, director of 3Keel

Setting the scene: NGO reactions to the delay

• As the news rolls in that the European Parliament has approved the postponement of the EUDR deadlines, frustrations were expressed; not just the amount of time that the negotiations have taken, but also what’s missing. Michelle Desilets highlighted that the regulation does not include certain ecosystem types, such as savannas and wetlands. 
• Plus, NGOs felt that the process of constructing the regulation did not involve enough civil society organisations from the ground.
• The IUCN previously identified 193 endangered species which have palm oil as a major threat, thus meaning tis delay will heavily impact these species. 
• Another argument is that the delay has weakened Europe’s position as a frontrunner in protecting the environment. 
• On the ground, some feel that the EUDR will make very little difference to deforestation, as the expansion of palm oil in SE Asia is now on a downward trend. Most of the damage has already happened, echoing the question is the EUDR a little too late? 93% of palm oil is already certified by the RSBO. It was argued that most of the future forest loss will not happen from plant-based commodities, but from the mining of critical minerals such as nickel and gold.
• In contrast, stakeholders highlighted that the original timeline was too optimistic; many organisations were struggling with this deadline and thus see the delay as an opportunity. Ruben Brunsveld from RSPO believes the delay provides “more time for real conversations with people on the ground”, more time to get systems up and running and more time for it to be a success from the get-go. 
  
  

Smallholders at the centre of EUDR compliance 

• Mansuetus Darto from SPKS, representing Indonesian smallholders, emphasised “farmers don’t know which companies around their plantations are committed to EUDR compliance. Without transparency and direct collaboration, smallholders will be left behind.”
• Mansuetus also emphasised the lack of pressure from central governments on companies to comply with EUDR requirements, stating that stronger governmental action is needed to drive corporate accountability and ensure alignment with the regulation.

• Incentives and support: Mansuetus from SPKS emphasised the need for targeted support mechanisms to help smallholders meet EUDR requirements:  “Companies need to provide training, polygon mapping, and fair partnerships to ensure smallholders can comply with the regulation.”* He called for financial incentives, such as premium pricing, to make compliance both achievable and beneficial for farmers. Wei Peng from Louis Dreyfus Company reinforced this point, highlighting the critical role of stakeholders in enabling smallholder compliance:  Smallholders often lack the technical expertise to meet EUDR standards. It’s up to stakeholders like us to enable compliance through financial and technical assistance.”*
•  Addressing market dynamics: Wei Peng warned of a significant risk in market behaviour:  “Without proper intervention, companies may prioritise producers with the lowest compliance costs, excluding smallholders entirely. This practice must be avoided through deliberate market support and policy alignment.”*
• Creating incentives for smallholders: For many smallholders, the destination of their products—whether to EU or other markets—is not a motivating factor. Without tangible benefits, they are unlikely to invest in meeting compliance standards. Wei Peng emphasised the need for clear incentives:  Compliance requires effort, and smallholders need to see direct benefits, whether through financial support, premium pricing, or access to better resources.”
• Technical responsibilities: Another key challenge lies in the technical requirements of EUDR compliance, such as polygon mapping and geolocation data collection. Mansuetus stressed that these tasks are beyond the capacity of smallholders: “These activities should not be performed by the smallholders themselves. Instead, implementation companies and supply chain operators—those with the technical expertise and resources—should take responsibility.”

Traceability and Transparency

• Palm oil sector insights: Ruben emphasised the need to balance regulatory demands with practical solutions:
   “Mass balance models, which mix certified and non-certified materials, are still viable under EUDR as long as all components are deforestation-free. Misunderstandings around traceability methods must be addressed.”
• Soy sector perspective: Heleen Van Den Hombergh from IUCN NL and the Collaborative Soy Initiative highlighted traceability complexities in soy supply chains: “Physical segregation and traceability systems require massive investment. The delay allows the sector to explore smart combinations of tools to meet not just EUDR but other sustainability goals.” Susanne Fromwald from Dau Soja and the Collaborative Soy Initiative  highlighted there is mixed readiness among soy-producing countries: “The situation varies widely. In countries like Serbia, where there’s minimal government support for small farmers, readiness for EUDR is low. But in Ukraine, there’s strong progress with 600,000 tons of soy already undergoing deforestation-free certification.”

Global markets and leakage risks

• China’s growing interest in sustainability: Wei Peng shared promising developments: “We recently shipped the first verified deforestation-free soy to China. This growing interest from Chinese markets could complement EU efforts to create global momentum.”
• Domestic Markets in Producing Countries:
  Michelle noted that much deforestation-driven palm oil now serves domestic markets in Indonesia and India, making international regulation alone insufficient.
  “The EU’s demand signals must be part of a broader global movement. Without interventions in domestic markets, deforestation risks will persist,” she cautioned.

Recommendations for the way forward

Engage and empower producers

• Fair partnerships: Manseutus urged companies to create partnerships that go beyond compliance: “Companies must collaborate with cooperatives and local governments to ensure smallholders are not excluded.”
• Incentives and support: Ruben Brunsveld suggested models like RSPO’s book-and-claim system as tools to directly support smallholders financially.

Promote multi-stakeholder collaboration

• Strengthen national systems: Heleen (NAME) advocated for aligning EUDR with national traceability systems: “Public governance systems must be strengthened to support deforestation-free commitments in all markets, not just the EU.”
• Capacity building: Will Schreiber from Retail Soy Group emphasised that businesses must act immediately: “The delay is not an excuse for inaction. Companies need to conduct dry runs, improve governance, and pressure supply chains to transform.”

Focus on long-term solutions

• Go beyond compliance: Will underscored the importance of addressing root causes: “EUDR is a start, but it won’t solve deforestation alone. Financial instruments like payment for ecosystem services are needed to make conservation more viable than conversion.” Heleen also urged companies to consider a holistic approach. “Don’t treat EUDR in isolation. Combine it with other EU regulations, such as due diligence and sustainability reporting, to create robust company policies. Use the delay to build systems that are future-proof and address multiple sustainability goals.” 
• Consistency and clarity: Susanne from Donau Soja highlighted the need for stable regulatory frameworks: “Regulatory uncertainty punishes frontrunners who have already invested in compliance. Clarity is key to ensuring fair competition.”