For Indonesian smallholders, EU deforestation rule is a threat — and an opportunity

2022 report by Washington, D.C.-based sustainability risk analysis organization Chain Reaction Research (CRR) estimates the cost of compliance could add up to 3.5% of revenue. However, not complying with the EU regulation could result in $14.3 billion in losses for EU actors in the palm oil value chain, the report says.


New palm oil regulations being adopted by the European Union and the U.K. could put even more pressure on independent small farmers in Indonesia who are already struggling to meet sustainability requirements, new research suggests.

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