Navigating the path to legal and traceability compliance: Uganda’s experience with the EU Deforestation Regulation

In late 2024, ISEAL commissioned AidEnvironment to carry out a research consultancy on tools and initiatives that support compliance with the EUDR’s legality requirement, an obligation to comply with local laws. The research shares insights on the path to legal and traceability compliance.

With increased scrutiny on global supply chain practices, commodity-producing countries face mounting pressure to meet new legal, traceability, and sustainability reporting requirements. Specifically, the EU Deforestation Regulation (EUDR) mandates traceability back to farm plot, compliance with local legislation, and proof of due diligence in the sourcing of deforestation-risk commodities like coffee and cocoa. These requirements aim to curb deforestation and promote responsible sourcing but pose significant challenges to local producing communities, particularly in regions with complex land tenure systems and limited formal documentation.

While much attention has been given to deforestation-free and traceability requirements under EUDR, the legality aspect – encompassing land use rights, environmental protection, labour rights, and human rights – presents a more complex challenge. Demonstrating compliance involves verifying land ownership, resource rights, and local legal frameworks, which can be difficult in many producer countries. Many smallholder farmers operate under informal land tenure arrangements that lack formal titles, making it difficult for companies to verify legal ownership and meet global legality requirements. Addressing these challenges requires context-specific approaches that balance compliance with inclusivity, ensuring smallholders are not excluded from global markets.

 

ISEAL's work on deforestation-free supply chains is generously supported by the Walmart Foundation.