Finding a place for smallholder farmers in EU deforestation regulation

This briefing by the Stockholm Environment Institute examines the impact of the European Union Deforestation Regulation (EUDR) on smallholder farmers in Southeast Asia. While the EUDR aims to eliminate deforestation from the EU market for six key commodities, the report highlights significant barriers for smallholders—including high compliance costs, lack of technical capacity, and land tenure insecurity—that risk excluding them from global value chains. The authors propose establishing knowledge hubs, financial support mechanisms, and enhanced stakeholder coordination to ensure an inclusive transition.

• The European Union Deforestation Regulation (EUDR), effective as of 29 June 2023, prohibits six 'forest-risk commodities'—wood, soy, rubber, palm oil, cocoa, and coffee—and their derivatives from entering the EU market unless they are proven to be deforestation-free and produced legally.
• In Southeast Asia, agricultural expansion has been significant, with land increasing by nearly 40% between 1980 and 2014. Commodity farming is the primary driver, accounting for 73% of deforestation in the region, while logging accounts for 19% and urban expansion for 0.28%.
• Smallholder farmers, who make up approximately 100 million people and 40% of the local workforce in Southeast Asia, face severe risks to their income and supply chain positions due to the EUDR's stringent requirements and their own limited resources.
• Smallholders face several critical barriers to EUDR compliance, including a lack of awareness regarding standards, the financial burden of geolocation and certification, insecure land tenure that prevents proof of non-deforestation, and limited participation in decision-making processes.
• Existing sustainability certifications are underutilized by smallholders; for example, it is estimated that only 10% of smallholders have obtained Roundtable on Sustainable Palm Oil (RSPO) Certification, with even lower rates for independent smallholders.
• The report identifies three primary opportunities to support smallholders: creating knowledge hubs to bridge information gaps, developing financial mechanisms and incentives to offset compliance costs, and streamlining stakeholder coordination through policy dialogues and mapping.
• The EUDR timeline requires full enforcement by December 2024, with small and medium-sized enterprises (SMEs) given until June 2025 to comply.

APA

Melati, K., Jintarith, P., & Lee, H. (2024). Finding a place for smallholder farmers in EU deforestation regulation. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf

Chicago

Melati, Kuntum, Pimolporn Jintarith, and Haeun Lee. Finding a place for smallholder farmers in EU deforestation regulation. Stockholm Environment Institute, 2024. https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf.

Wikipedia

{{cite report |last1=Melati |first1=Kuntum |last2=Jintarith |first2=Pimolporn |last3=Lee |first3=Haeun |title=Finding a place for smallholder farmers in EU deforestation regulation |publisher=Stockholm Environment Institute |date=September 2024 |url=https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{melati2024finding, author = {Melati, Kuntum and Jintarith, Pimolporn and Lee, Haeun}, title = {{Finding a place for smallholder farmers in EU deforestation regulation}}, institution = {Stockholm Environment Institute}, year = {2024}, month = sep, url = {https://www.sei.org/wp-content/uploads/pdfs/174795/finding-a-place-for-smallholder-farmers-in-eu-deforestation-regulation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }