Will the EU’s deforestation law keep forests standing?

A 2022 analysis by Chain Reaction Research considered the implications of the EUDR for palm oil actors and their financiers. The findings suggest that EU operators’ compliance costs would be at most 3.5 per cent of a company’s palm-oil-related revenues. They also indicate that proper compliance could protect US$14.3 billion in reputation value for EU actors in the value chain.


The EU’s unprecedented effort to eliminate deforestation from its supply chains fails to consider the poorest growers that form the backbone of palm oil production, say businesses and civil society in Southeast Asia. The oversight could cost developing countries dear and ultimately risks thwarting the bloc’s plan to protect the world’s forests, they add.

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