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The upcoming EUDR: Postponing is a good decision, let’s now get this right.

Rafael Merchan and Jesse Festa
November 19, 2024
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Key Insight

The EUDR marks a critical shift toward sustainability, but we must ensure small farmers, with their potential as solution providers, are not excluded due to technical requirements. With the extended timeline, we have the opportunity to prepare them to meet these standards and thrive in a digitalized agricultural landscape.

The European Union Deforestation Regulation (EUDR) was was initially set to take effect in January 2025. As of last week, after many rumblings at September’s New York Climate Week, it has now been postponed to the end of December 2025. This is a good decision.

To recap, the EUDR is a 27-member country effort making a significant step to curb in greenhouse gas emissions and global deforestation. This landmark legislation is a testament to the EU's commitment to reducing deforestation from critical commodities – coffee and cacao, amongst others - and is critical to falling in line with our ambitious climate commitments set out in the 2015 Paris Accords.

As an organization dedicated to promoting regenerative agriculture and sustainable farming, it's important that we view the EUDR not as an adversary but as an opportunity for positive change. However, as we have heard from smallholder farmers and other actors, there is confusion. The intended ambitions of the EUDR are creating unintended consequences.

But let’s be clear: The EUDR matters and represents the future direction of governments and companies alike. This regulation is the precursor to further public and private sector changes aimed at achieving the global climate and biodiversity goals. The EUDR represents a pivotal shift in how agricultural commodities are sourced, aiming to curb deforestation and protect vital ecosystems. These ecosystems support agricultural production, both on-farm and off-farm in the natural habitats that sequester carbon, promote biodiversity, recharge water and mitigate risks for vulnerable communities, like ours in Mesoamerica.

However, two things need to be addressed in the coming 15 months before this regulation does come into effect. First, how do we ensure the EUDR doesn’t segment supply chains? While the EU may reward deforestation-free coffee with higher premiums, what happens to the non-compliant coffee? Will this incentivize other countries to source cheaper coffee from producers who don’t adhere to these regulations, thus indirectly rewarding them for poor environmental performance?

Secondly, another key aspect that needs to be addressed, and that we in the Blue Harvest strategy are alarmingly concerned about, is the inclusion of smallholder farmers in the EUDR. How do we ensure they aren’t excluded? We know that less than 1% of all climate finance (funding aimed at mitigation and adaptation) reaches the smallest producers, even though they can be the most powerful and effective solutions providers for carbon sequestration and biodiversity conservation. But how do global regulations like EUDR reach smallholders? Many cooperatives are unaware of this nor do have clear pathways for how to access the information and resources promised by the EU. Historically, smallholder farmers have faced exclusion from markets due to stringent regulations and certification requirements. This exclusion often limits their access to fair trade opportunities and undermines their ability to receive premiums for the regenerative practices and agroforestry systems they implement. Ensuring that the EUDR includes smallholder farmers is crucial for their economic well-being and for the overall success of having a just transition for the world’s poorest coffee farmers.

Unfortunately, the technological demands of the EUDR threaten to leave many smallholder farmers behind. By requiring detailed geographic information system (GIS) data, such as GPS points or polygons, the regulation aims to verify that coffee is deforestation-free. However, these new requirements pose enormous challenges for smallholders who lack systems to collect, store, and share this data. Many farmers have limited access to GPS technology and digital mapping tools, and they often face unreliable internet connectivity in remote areas, making data management a complex task. With fragmented plots that may require multiple GPS points, and limited familiarity with GIS technology, smallholders face a steep learning curve. Without accessible technology, training, and support, these geolocation requirements could inadvertently exclude those who lack the resources to comply, underscoring the need for inclusive solutions within the EUDR framework.

As the EUDR approaches, our focus should be on assisting cooperatives and smallholder producers to comply with these new standards. We now have a bit more time, but this early preparation will enable us to support farmers in continuing to adopt regenerative practices, which our Water Smart Agriculture strategy has shown can increase yields, increase incomes, and better steward natural resources.

In Guatemala, through one of Blue Harvest's programs—the Horizons Initiative—we have begun training farmers in the use of GIS technologies, not only to geolocate their production but also to improve efficiency and support regenerative practices with digital tools. Every Saturday, nine representatives from five coffee cooperatives supported by Horizons gather in CRS’s office in San Antonio Huistas, Huehuetenango, to learn how to create GIS polygons and manage geospatial data.

GIS Workshop in San Antonio Huista, Huehuetenango.
Cesar del Valle – de la cooperativa Rancho Viejo expreso que “es fundamental adquirir y manejar herramientas de GIS, ya que estas les permitirán cumplir con las nuevas exigencias de los mercados internacionales y fortalecer su competitividad.”

First group of farmers who received the GIS workshop

This first cohort marks the beginning of our efforts to equip farmers for compliance with the EUDR. As we continue to expand these training opportunities, our goal is to extend support to more cooperatives in the region, preparing them for the exciting yet challenging demands of this new regulation. By building these skills now, we’re helping farmers not just to meet new standards but to thrive in an increasingly digitalized landscape.

In conclusion, while the EUDR brings new challenges, it also presents an opportunity to advance sustainable and inclusive agricultural practices. We should embrace this regulation as a step toward a more sustainable future and prioritize ensuring that all stakeholders -especially smallholder farmers- are supported in this transition.

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