As EUDR nears reality, the focus shifts from compliance to implementation
The debate around the European Union Deforestation Regulation (EUDR) has long been dominated by deadlines, delays and uncertainty. But as implementation approaches, the conversation is changing. The key question is no longer simply what the regulation requires, but whether companies have the capacity to put those requirements into practice across complex, global value chains.
For businesses sourcing commodities such as coffee, cocoa, palm oil, soy, rubber and wood, this means going beyond understanding the rules. They need the systems, partnerships and transparency to implement them at scale – something which cannot be built overnight.
While EUDR may be new, many of the challenges it seeks to address are not. Companies have been grappling with traceability, transparency and farmer support for years. What has changed is that these issues have moved from sustainability ambitions to business requirements.
Yet significant barriers remain, particularly for smallholders facing costs, technical constraints and limited access to traceability systems. Recent discussions within the EUDR Community of Practice, facilitated by IDH and Tony's Chocolonely, have highlighted concerns around duplicated data collection, verification burdens and the risk of market exclusion for smallholders if implementation is not carefully managed. Addressing these challenges will require practical, collaborative solutions that work for producers as well as markets.
As IDH marks its eighteenth anniversary, the approaching implementation of EUDR offers a timely reminder of lessons learned over nearly two decades of work in sustainable trade. Resilient, sustainable value chains are not built through regulation alone - they depend on collaboration between governments, companies, producers and local communities.
Vietnam: building the foundations for deforestation-free supply chains
Since 2015, IDH has worked in the Central Highlands of Vietnam with government partners, coffee companies and producers to strengthen sustainable production systems. This work was not designed around EUDR. Instead, it focused on challenges that are now central to the regulation: improving supply-chain transparency, supporting farmers, protecting landscapes and creating the conditions for responsible sourcing at scale.
Over time, the initiative helped support the development of the world's first national action plan for deforestation-free sourcing areas aligned with EUDR requirements – ensuring Vietnam’s coffee sector is prepared to meet these regulatory standards effectively, when they come into force. It also contributed to systems linking farm and forest data, providing greater visibility across production landscapes.
Building deforestation-free coffee supply chains goes beyond regulatory compliance. It requires investment in systems, partnerships and local capabilities to enable sustainable production. The collaboration with IDH and partners in Vietnam demonstrates how collective action can strengthen transparent, responsible sourcing, ensuring the transition is inclusive and delivers lasting benefits for farmers, communities and the landscapes on which they depend.
The experience in Vietnam highlights that companies cannot address systemic sourcing challenges alone. Effective and inclusive EUDR implementation will require stronger collaboration across supply chains, producing countries and landscapes. By working collectively, stakeholders can reduce duplication, improve efficiency and create benefits that extend beyond any single organisation. The real test of EUDR will be whether companies, governments and producing communities can work together to translate regulatory requirements into practical action.