The European Council raised concerns surrounding the no risk amendment to the EUDR, passed by the European Parliament in a vote on 14 November. The controversial amendment, which was provisionally dropped by the European leaders on 3 December, was proposed by the European People’s Party (EPP) at the time of the vote.

German MEP, Christine Schneider of the EPP, withdrew the party’s proposal to create the no risk status category under the EUDR on 2 December. “We promised and we have delivered. This postponement means businesses, foresters, farmers and authorities will have an additional year to prepare,” she said in a statement, adding, “An impact assessment and further simplification is to follow in the review stage for the low risk countries or regions providing countries with an incentive to improve their forest conservation practices.”

The EPP’s withdrawal follows the European Parliament’s vote to delay the EUDR by 12 months, which remains in effect. Companies will have one more year to adapt to new EU rules to prevent deforestation, which will ban the sale of products sourced from deforested land in the EU. A statement released by the European Parliament announced that on Tuesday evening (2 December), negotiators from the Parliament and Council reached a provisional political agreement to postpone the application of the new rules. Large operators and traders will now have to respect the obligations of this regulation as of 30 December 2025, and micro- and small enterprises from 30 June 2026. This additional time is intended to help companies around the world implement the rules more smoothly from the beginning, without undermining the objectives of the law.

The Commission proposed postponing the application date of the deforestation regulation by one year in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024.

Following requests from Parliament, The Commission committed to continue easing the burden on businesses by reducing administrative requirements and eliminating unnecessary bureaucratic burdens

In terms of next steps, the vote on the informal agreement between the co-legislators will be added to the agenda of Parliament’s next plenary session (16-19 December). In order for the postponement to enter into force, the agreed text has to be endorsed by both Parliament and Council and published in the EU Official Journal before the end of the year. — Vanessa L Facenda

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Following a vote on 14 November in Brussels, Belgium, the European Parliament confirmed to delay implementing the European Union Deforestation Regulation (EUDR) –a plan that was already endorsed by the Council of Ministers – until December 2025.

Adopted on 19 April 2023 and initially due to be enforced on 30 December 2024, the EUDR proposes to ban the export of products associated with deforestation, such as coffee beans, cocoa beans, soya, cattle, rubber, palm oil, and wood. The law also applies to European farmers.

Third countries, member states, operators and traders will have more time to prepare for the due diligence obligations imposed by the EUDR. Large operators and traders would have to adhere to the requirements stemming from the EUDR as of 30 December 2025, whereas micro- and small enterprises would have until 30 June 2026. In a statement released by the European Parliament, “this additional time would help operators around the world to implement the rules smoothly from the start without undermining the objectives of the law.”

Parliament also adopted other amendments proposed by the political groups such as the European People’s Party (EPP), including the creation of a new category of countries posing “no risk” on deforestation in addition to the existing three categories of “low”, “standard” and “high” risk. Countries classified as “no risk”, defined as countries with stable or increasing forest area development, would face significantly less stringent requirements as there is a negligible or non-existent risk of deforestation. The Commission will have to finalise a country-benchmarking system by 30 June 2025.

Multiple proponents of the EUDR have called out the move. In a statement on LinkedIn, Rainforest Alliance said the no-risk category would be “a death sentence to the EUDR.”

The World Wildlife Fund (WWF) issued a statement saying, “The European Parliament, driven by the European People’s Party (EPP), voted for amendments to substantially weaken the EU Deforestation Regulation (EUDR) de facto deregulating and undermining one of the EU’s landmark environmental laws. By introducing a category of “no risk” countries, the EPP and its allies have effectively voted to enable further forest destruction both within and outside of Europe. The move undermines the efforts of forward-thinking companies that have invested in deforestation-free supply chains to comply with EUDR requirements in time for its application on 30 December 2024.”

Parliament is now referring this file back to committee for interinstitutional negotiations. In order for these changes to enter into force, the agreed text will have to be endorsed by both Council and Parliament and published in the EU Official Journal.

The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest – an area larger than the EU – were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation. Palm oil and soya beans account for more than two-thirds of this. — Vanessa L Facenda

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The vast majority of the world’s 12.5 million coffee farms are run by smallholder farmers; in fact, almost three-fourths of the world’s coffee comes from small farms. Yet, if nothing is done to tackle the exacerbating issues faced by these farmers – such as climate change and low and unstable incomes – 50 percent of the regions suitable for coffee farming could disappear by 2050. As a result, farmers may resort to expanding into forested areas in their struggle to sustain and increase agricultural output, leading to further deforestation.

The Rainforest Alliance strongly believes that the European Union Deforestation Regulation (EUDR), due to come into effect on 30 December 2024, is an important step forward in the global fight against deforestation and forest degradation linked to the production of several high-risk commodities, including coffee.

However, as companies race towards EUDR compliance, we are seeing the very real risk of companies only meeting the minimum requirements and neglecting their responsibility to support farmers and address systemic poverty – a major contributor to deforestation. To address this, it is crucial that more value finds its way from companies to smallholders, who are vital to global food supply chains. This is why the role of certification has never been more important for the coffee sector.

Challenges faced by smallholder coffee farmers

In our work over the last 36 years, we’ve seen that smallholder farmers often lack the financial resources and technical expertise needed for better farm management, traceability, and accountability, such as GPS mapping. This further exacerbates the challenges they face, creating a barrier for producers who lack access to such tools.

EUDR compliance requires providing GPS points or polygons, which can overwhelm smallholder farmers operating in remote or rural areas with limited infrastructure. Without the required support, they are at a disadvantage compared to larger, more resourced competitors which also risks marginalising them from lucrative European markets.

The cumulative effect of these challenges underscores the need for support mechanisms, such as financial assistance, training programmes, and infrastructure development, to help smallholder farmers align with EUDR requirements and remain competitive in the global market.

Certifications: bridging regulatory requirements and sustainable agriculture

Certification acts as a bridge between regulatory demands and the transition towards more sustainable and regenerative agricultural practices. It provides a structured framework for coffee grown and harvested in ways that aim to protect forests and support local communities, through:

• Credibility and assurance: Recognised programmes (like Rainforest Alliance certification) provide a credible stamp, assuring brands, regulators and consumers that certified coffee aligns with a strict set of social, economic and environmental sustainability standards.
• Traceability: Certification processes often include robust traceability mechanisms, allowing companies to track their coffee’s journey from farm to cup. This traceability is crucial for EUDR compliance, ensuring products are deforestation-free.
• Sustainable agriculture: At the heart of certification is the promotion of sustainable farming practices beyond addressing deforestation, including climate resilience, improved livelihoods, biodiversity conservation, protection and advancement of human rights, business training, and compliance with local laws. This holistic approach aligns with the broader goals of the EUDR by addressing some of the root causes of deforestation.

For the coffee sector, embracing certification is not just a strategic move – it is an essential step towards ensuring that every cup of coffee contributes to positive change for both farmers and nature.

• Miguel Gamboa is coffee sector lead at the Rainforest Alliance and is based in Guatemala. He trained as an industrial engineer with Masters in Reengineering and International Trade. Gamboa started his professional career working in a coffee exporting company. Twenty years ago, he started working with the UTZ certification programme, learning about the different realities of coffee production throughout Latin America. After the merger of UTZ and the Rainforest Alliance, Gamboa was appointed coffee representative manager for Latin America, and assumed his current position in September 2022. With 37 years of experience in tackling deforestation in global supply chains, the Rainforest Alliance’s systems can help certified coffee supply chain partners take steps towards complying with EUDR requirements. RA is also developing a deforestation risk assessment offering for non-certified supply chains.

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NKG is well-prepared to meet the challenges of the EUDR on multiple levels:

• Through its 17 export companies, NKG has established long-standing relationships with suppliers and possesses in-depth knowledge of the local coffee sectors.
• The proprietary supply chain programs NKG Verified and NKG Bloom exceed the requirements of EUDR and other regulations, serving as initial blueprints for compliance. All NKG Verified supply chains and some NKG Bloom supply chains will be EUDR aligned by the end of Q3-2024. Furthermore, NKG’s field teams work daily with producers, providing services to address root causes of deforestation.
• So far, NKG’s efforts have focused on information sharing, fostering a common understanding of the regulation both internally and with business partners. The group has established protocols for the consistent mapping of coffee plots and the creation of high-quality polygons, which are essential for accurate monitoring and compliance.
• An effective response to EUDR requires substantial efforts and investments in both human and technical resources. The worldwide operating group can leverage the power of over 300 colleagues working in sustainability globally.

NKG has set up a comprehensive, reproducible methodology to validate geodata quality, its plausibility as coffee growing area and check specific deforestation and legality risk. This method serves as a global NKG benchmark and is based on publicly available resources. The methodology will be made available across NKG, making deforestation analysis ubiquitous and accessible across the group. NKG regularly updates and refines its methodology based on customer and regulatory requirements.

NKG’s Due Diligence System (DDS) powered by osapiens

NKG’s DDS is the cornerstone of the group’s approach to EUDR. Efficient due diligence processes are essential to manage information flows effectively, which will be assured by one unified NKG system for EUDR and Business Partner Due Diligence, among others. Therefore, NKG partners with osapiens.

“By collaborating with osapiens, we aim to strengthen NKG’s position as a leading green coffee service provider. This partnership will increase efficiency and maximize value creation by enhancing our business relationships. Additionally, it will ensure the best possible and streamlined preparation for EUDR compliance across our entire group” explains NKG Group COO, Ruben Scholz.

osapiens is an exceptional partner in NKG’s mission to enhance supply chain management and regulatory compliance. With osapiens, the group will harmonize data, establishing clear protocols for both suppliers and customers. For seamless and efficient data flow, a single endpoint will be provided and complemented by a portal, including applicable EU TRACES information. Additionally, osapiens offers a comprehensive range of capabilities for business partner due diligence. NKG will be able to deliver complete information packages at a shipment level, ensuring thorough and accurate documentation. Through the combination of an integrated Due Diligence System with high quality geodata analysis NKG will keep the coffee flowing into Europe under EUDR.

For more information about NKG’s approach and possibilities to get in touch please visit nkg.coffee/eudr.

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The EUDR aims to cut greenhouse gas emissions and help limit biodiversity loss by influencing global action on climate change targeting commodities linked to deforestation. The EUDR will come into force from December 2024 to June 2025 and goes much further than previous regulation on this issue by outright banning materials linked to deforestation and applying to the entire value chain. The EUDR covers products made or derived from cattle, oil palm, rubber, soya, wood, cocoa, and coffee, if they are sold in the EU. The regulation must be followed by any company involved in the value chain of these commodities at any point, whether inside the EU or not.

Under this regulation, companies must prove that none of their product’s components, ingredients, or production processes have contributed to deforestation. The onus will be on companies to prove that not only their product, but their product’s value chain is deforestation-free.

Under the EUDR companies that trade in these commodities and their derived products in the EU market or that export them from the EU will need to follow mandatory due diligence reporting of the goods and supply chains they wish to trade in and demonstrate that their products are not linked to deforestation, or to forest degradation through, such as the expansion of agricultural land. The regulation will require companies and industries in countries that supply the EU to transition to a sustainable, deforestation-free supply chain and legal agricultural value chain if they wish to trade in the EU.

Agribusiness consultants at GlobalData, a data and analytics company, estimate that EUDR compliance premiums for companies operating in the supply chain for just two of the targeted commodities, oil palm products and their derivatives (such as crude palm oil (CPO) and palm kernel oil (KPO)), and rubber could be in excess of $1.5 billion* alone. GlobalData analysts believe that while companies operating in these supply chains will be able to absorb some of the costs themselves a good proportion of these compliance premiums are likely to be passed onto EU consumers in the form of food and drinks and product price increases.

GlobalData’s new study, EU Sustainability Regulations: How the EUDR and other Sustainability Regulations will impact consumer markets, explores some of the EUs key sustainability regulations focusing on the aims of the EUDR and the compliance challenges ahead for farmers, companies, and manufacturers trading in the commodities targeted by the regulation. The study also looks at what the EUDR could mean for the global supply chain of the target commodities, the potential impact on consumer markets and pricing within the EU and how the EUDR could affect the EU’s future competitiveness with China.

Food and drink categories likely to be most affected include coffee, chocolate, soy-based meat alternatives, and products containing palm oil, in addition to personal care products such as shampoo. The GlobalData study finds that operational costs for coffee suppliers will increase and the risk of sanctions for importers will become real. Many coffee suppliers save money by sourcing from multiple growers. This will become more expensive under the EUDR as each one will require GPS-based tracking and traceability protocols.

According to the study, the additional administration required by producers of coffee, cocoa, soya, and other products covered in the EUDR will add significant costs to smallholder farmers. Furthermore, the study reveals that governments in producer countries will likely have to step in to support them, noting that “this is already happening for cocoa farmers in West Africa and coffee farmers in South-East Asia. The EUDR will specifically impact agricultural practices in places like South America, sub-Saharan Africa, and South-East Asia as the industry looks to avoid its impact being classed as ‘deforestation’ by the EU. This will include more ‘agroforestry’- planting crops amongst other plants and trees.”

“The aims of the EUDR are understandable and cutting greenhouse gas emissions and protecting biodiversity is essential. However, there could be some disruption ahead,” said Fred Diamond, senior food & beverages consultant and analyst at GlobalData. “The extra demands of the EUDR could lead some commodity suppliers in what the EU terms ‘third countries’ to move away from the EU and increase trade with countries that impose fewer regulatory requirements such as China.”

Diamond further noted that the gap between big and small companies could get wider as larger companies are more able to shoulder the additional regulatory burden. “The exact impact on consumers will depend on a variety of factors, including how companies choose to respond to the regulation, the extent to which the regulation is enforced, and how much assistance EU member states are willing to give to supplier countries to help them align with the new rules. However, with recent news reports confirming that the world’s top climate scientists expect global heating to go well beyond the current 1.5C target, sustainability regulation associated with cutting greenhouse gas emissions, such as the EUDR which targets deforestation, remains an urgent priority for the planet,” he said.

To read GlobalData Food & Beverages Consultant’s new study EU Sustainability Regulations: How the EUDR and other Sustainability Regulations will impact consumer markets in full, click here.

*The $1.5 billion EUDR compliance premium figure is based on GlobalData Agribusiness consultants understanding of current commodity pricing and the likely impact of increased costs of EUDR compliance on the supply chain of these commodities. However, the company recognises that EUDR compliant commodity premiums are still being agreed confidentially between buyers and sellers so some uncertainty remains over the final numbers.

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal

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Honduras, Peru and Rwanda are committed to implementing JDE Peet’s’ innovative strategy to ensure all coffee is EUDR compliant, including the identification of coffee plots grown on land deforested after the 2020 cut-off date. A mutually agreed protocol will ensure that any coffee found to be in contravention of the new regulation is remediated. JDE Peet’s then works with farmers and local partners to assist in reforesting the land.

This ground-breaking initiative, developed by JDE Peet’s in partnership with Enveritas, a global sustainability platform, uses a combination of high-resolution satellite imagery, artificial intelligence and on-the-ground verification to measure the extent of coffee-related deforestation. This approach allows local operators, governments, NGOs and farmers to better mitigate deforestation risks.

To date, more than 90% of the coffee grown in the world has been mapped, representing a major step in the fight against deforestation. In addition to remediated deforested coffee plots, JDE Peet’s will bolster its efforts in regions at risk of deforestation, targeting the underlying issue of poverty by spearheading the advancement of regenerative agricultural practices.

The new MOUs follow JDE Peet’s’ recent commitment to newly validated near-term and net-zero SBTi targets, including a specific SBTi Forest, Land and Agriculture (FLAG) target. SBTi FLAG is the world’s first framework for companies in land-intensive sectors to set science-based targets that include land-based emission reductions and removals.

JDE Peet’s is one of only 39 companies globally in the FMCG sector to have a net-zero target by 2050, and one of only 23 companies to have a FLAG target.

JDE Peet’s’ commitments to combat deforestation are further captured in its expanded Forest Policy, which aims to protect forests through responsible sourcing principles and guidance and sets out expectations for suppliers. This includes a no-deforestation policy across JDE Peet’s’ primary deforestation-linked commodities, coffee, pulp & paper, palm oil and cocoa, with a target date of 31 December 2025.

Laurent Sagarra, vice president sustainability at JDE Peet’s, commented: “We are very proud to further progress our efforts to combat deforestation through these new MOUs with Honduras, Peru and Rwanda. Deforestation, and its impact on climate change, poses a threat to our business, as we look to buy high-quality coffee beans from around the world to delight our customers and consumers. That is why JDE Peet’s is committed to working with our partners and governments to ensure we can grow coffee responsibly while helping to secure the livelihoods of millions of smallholder farmers.”

For more information on JDE Peet’s’ climate transition plan, visit its Common Grounds programme.

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The update, approved by the Fairtrade Standards Committee, meets, and in some areas exceeds, the European Union’s Deforestation Regulation (EUDR) that went into effect in June 2023. In particular, the updated Fairtrade Coffee Standard sets the deforestation cut-off date at 1 January 2014, which means that no coffee should come from land deforested after that point. It also requires that all farms have recorded geolocation points, and farms larger than four (4) hectares must have polygon maps.

Juan Pablo Solis, senior advisor climate and environment, Fairtrade International, explained that the updated Coffee Standard is important because it represents a big step in the right direction. “There is no denying we are living in an era of climate crisis. For farmers and workers, the frequency and severity of climate variability means high exposure to human and environmental risks that jeopardise their livelihoods. It is no secret that climate change directly impacts smallholders’ future, hence a significant change in our global food system is paramount.”

In addition, the Standard requires coffee cooperatives to develop a prevention and mitigation plan, and they must conduct deforestation monitoring that will be facilitated by a satellite platform provided by Fairtrade. Fairtrade has established a partnership with Satelligence, a leader in deforestation tracking, that will allow producer organisations to have access to data and act on risks identified.

By updating the Coffee Standard, 600 Fairtrade coffee cooperatives, representing 870,000 Fairtrade coffee farmers cultivating 1.1 million hectares, would have the guidance and tools to meet the EUDR, which is part of the European Green Deal.

For instance, the EUDR requires geolocation data, but the Fairtrade Standard goes further by requiring producer organisations to collect this information, and payers and conveyors to report it to Fairtrade and also share this with the producer organisations to prevent deforestation. This detail points to the principle of fairness, meaning that the responsibility of protecting the environment must be shared by all those involved. The EUDR cutoff date is 31 December 2020, while the Fairtrade cutoff date is 1 January 2014. Plus, the Fairtrade Standard requires not only monitoring and risk assessment but also a biodiversity monitoring and management plan unlike the EUDR requirements.

The updated Standard will take effect in 2026, which will provide producers and traders with a transition period to adjust their practices and ensure compliance.

Fairtrade standards are reviewed and regularly updated through an inclusive and consultative process initiated and led by Fairtrade International’s Standards and Pricing Unit, with the participation of key stakeholders in the Fairtrade system, including farmers and farm workers, and then decided upon by the Fairtrade International Standards Committee. The committee, which includes representatives of the three Fairtrade Producer Networks, ensures that any decision considers the views of all the relevant stakeholders and are in line with Fairtrade International’s mission and policy statements.

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After a successful pilot programme in Vietnam, JDE Peet’s has signed Memoranda of Understanding (MOUs) with Ethiopia, Papua New Guinea, Tanzania, and Uganda, and expects to sign MOUs with additional coffee producing countries over the next several months. These agreements aim to ensure that coffee producers export coffee grown on land that was not deforested after 2020. If the coffee does not meet these requirements, JDE Peet’s will support local authorities, NGOs, and farmers to reforest the land.

Fabien Simon, CEO of JDE Peet’s, commented, “At JDE Peet’s, we are committed to delivering sustainable growth that creates both shareholder return and societal value. This means making sure our supply chain is inclusive, regenerative, and authentic, which is exactly what our Common Grounds sustainability programme is designed to do. I am excited that this innovative new programme, which is fully aligned with the EU’s Regulation on Deforestation-free products, will ensure continued access to the EU market for the millions of smallholder farmers we work with around the world.”

David Browning, CEO of Enveritas, commented, “Millions of smallholder farmers around the world rely upon coffee income to pay for their children’s health, education, and nutritional needs. The new EU regulation risked significant new complexities and processes in the coffee supply chain which could mean new costs for vulnerable populations least able to afford it, and also risk market access. We are honoured to be a part of this innovative collaboration with JDE Peet’s which brings together public, private, and philanthropic organisations to address deforestation in a manner which also protects smallholder farmers.”

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4C, the sustainability certification scheme for the coffee sector, introduces its new Regulation for 4C certified EUDR Coffee in response to the obligations faced by importing and exporting operators under the EUDR which will be fully implemented by 30 December 2024. The obligations entail the establishment of a robust due diligence system, providing information on encompassing product details and traceability, geolocation specifications, deforestation-free production practices, legality of production, and comprehensive risk assessments.

What sets 4C apart is its strategic collaboration with Global Risk Assessment Services (GRAS), seamlessly integrating state-of-the-art risk assessment procedures such as high-resolution satellite image interpretation for forest and deforestation monitoring, complemented by an extensive data set covering national legislation, human rights, claims by indigenous peoples, corruption indices, and information on law enforcement. This unique approach, combined with the already incorporated traceability platform, allows every coffee batch to be traced back to its origin with all relevant data. 4C provides the necessary information, risk assessment, and risk mitigation crucial for the Due Diligence Statement required by the EUDR.

4C certification focuses on good agricultural and management practices, including requirements on economic, social and environmental conditions for coffee production and processing in order to establish credible sustainable and transparent supply chains.

The documents for 4C certified EUDR Coffee are now available on the 4C website. They comprise the Regulation for 4C certified EUDR Coffee v.1.0 and the Self-Assessment and Self-Declaration templates which provide a tool for 4C certified groups of farmers to assess their risks with regard to relevant national and international laws and declare their conformity, as well as the Guidelines for Geodata collection v.1.0. The 4C system will be monitored and revised according to any further guidance and requirements to be provided by the authorities of the European Union.

The application of 4C certified EUDR Coffee is available for all 4C Units in 2024 before being integrated into the revision of the 4C System in 2025. Thus, from 1 January 2025 all 4C certified coffee will be required to comply with these additional EUDR criteria. In February 2024, 4C will conduct a series of introductory webinars to facilitate the understanding of the new Regulation for 4C certified EUDR Coffee for all 4C System users. The dates will be announced shortly.

By choosing 4C, companies can be confident that their supply chains meet the highest standards of compliance, laying the foundation for sustainable, trustworthy, and fair coffee and cocoa sourcing.

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