MSPO Meets the EUDR Challenge

On 30th December 2025, the European Union’s EU Deforestation Regulation (EUDR) will take effect.

The EUDR is a non-tariff barrier that impacts products primarily grown and produced in the developing world: Asia, Latin America and Africa.

The EUDR:

Imposes burdens, especially on low-to-middle-income markets
Ignores objections and impact on sustainable development
Increases compliance costs
Creates problems for exporters
Restricts small farmers’ participation

European stakeholders have even expressed their concerns with the regulation.

“We now urge the Commission for a temporary suspension of the regulation allowing for a feasible implementation accompanied by a revision of the regulation.”
Norbert Totschnig
Agriculture Minister of Austria
“If we [the EPP] wouldn’t have participated in the negotiations, the EUDR would be even worse. [The final text is a] bureaucratic monster.”
Peter Liese
German MEP and EPP Environment Spokesman
“We therefore urge the European Commission to delay the implementation of this regulation and subsequent enforcement penalties until these substantial challenges have been addressed.”
Katherine Tai, Thomas Vilsack & Gina Raimondo
Biden Administration Letter to EU
“We will simply not classify which means everywhere will be medium risk — we need more time to get the system in place. We have had a lot of complaints from partners.

EU Commission
“It will therefore not be possible to implement the EUDR in practice. Furthermore, it is not foreseeable that adequate framework conditions will be finalised sufficiently in advance of the deadline for implementation.”
Copa Cogeca
European Farmers Association
“The EUDR is a non-tariff barrier imposed by the European Union (EU). It discriminates against Malaysia’s four main commodities namely palm oil, rubber, timber, and cocoa, by restricting open market access.”
Belvinder Sron
CEO of Malaysian Palm Oil Council (MPOC)

Malaysia is Ready to Meet the Challenge

The EU Commission heeded the pleas of the palm oil stakeholders, including those by the Malaysian government, to delay EUDR implementation. Malaysia is ready to meet the EUDR challenge if the European Commission is ready to play its part with a key trading partner. Malaysia has:

1

A history of robust laws and regulations to ensure sustainable palm oil production

A mandatory national certification – Malaysian Sustainable Palm Oil (MSPO) – that is in conformance with international best practices and standards. The MSPO is a clear solution for compliance with the EUDR.

2

Learn More About MSPO

MSPO is Continuously Improving

No certification scheme is perfect, but MSPO is continuously improving. The question is: will the EU accept that they have written an imperfect EUDR Regulation and now make the necessary changes on risk assessment and certification, through engagement with partners such as Malaysia?

These are Big Questions for Brussels.

Independent Assessment of MSPO Compliance with EUDR

MPOC commissioned the renowned European certification auditor and sustainability expert, Pierre Bois d’Enghien, to author a comprehensive assessment of MSPO’s alignment with EUDR rules. The key findings from the assessment are as follows:

MEETS EU DUE DILIGENCE RULES

MSPO provides adequate information for the EUDR’s due diligence statement, such as product description, country of production, supplier identification, verification of deforestation-free status and legal compliance, and geolocation data.

MEETS EUDR FOREST RULES

MSPO prohibits the conversion of natural forest, protected areas and high conservation value areas after 31 December 2019. Bois d’Enghien emphasised that “the MSPO requirement meets and goes beyond the EUDR standard.”

MEETS EUDR LEGALITY RULES

MSPO ensures compliance with local, national and international laws and regulations, including those related to land use rights, environmental protection, labour rights, human rights and the principle of free, prior and informed consent. Bois d’Enghien particularly noted the “MSPO contains additional criteria for: rights to use land; and native customary rights.”

EUDR Needs More Work

There are significant areas in which the EU needs to work with Malaysia to find the necessary common ground. The uncertainty from the EU around EUDR and other rules, is not helpful for MSPO or Malaysian exporters:

  • The EUDR’s final rules are still unclear and yet to be completely defined, which makes the final compliance uncertain;
  • The accuracy and reliability of the EU’s global forest cover map is uncertain, and the EU is promoting it as a tool for importers, despite these uncertainties;
  • The traceability and risk assessment of products throughout complex palm oil supply chains will remain problematic, even if there is a guarantee of zero deforestation;
  • The exclusion of smallholders is likely to remain a risk, as companies will take the ‘easiest path’ to compliance.

The key recommendation is that MSPO should be accepted as a compliance approach for Malaysian palm oil by the EU as part of its guidelines for importers.

Download the Full Assessment by Pierre Bois d’Enghien