With the EU as the primary market for Ugandan coffee exports, there is a pressing need to align with the EU Deforestation Regulation (EUDR) requirements. What are the key hurdles and potential solutions?

In late 2024, ISEAL commissioned AidEnvironment to carry out research 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.

The Ugandan experience with the EU Deforestation Regulation

As global trade shifts towards greater transparency, commodity-producing countries face mounting pressure to meet new legal, traceability and sustainability reporting requirements.

Regulations such as the EUDR mandate traceability back to farm plot, compliance with local laws, and proof of due diligence in the sourcing of deforestation-risk commodities like Uganda’s coffee and cocoa.

These requirements aim to curb deforestation and promote responsible sourcing, but pose significant challenges to local communities.

The complexities of EUDR

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.

Proving legal compliance with local legal frameworks may involve verifying land ownership, working conditions and resource rights, which can be difficult in many producer countries, especially in smallholder contexts.

Many smallholder farmers operate under informal land tenure arrangements that lack formal tenure titles, making it difficult for companies to verify legal ownership and meet global legality requirements.

Uganda as a case study: land tenure complexity

Uganda exemplifies the complexity of these challenges, highlighting the need for collaboration and tailored approaches in commodity supply chains. Uganda’s long-standing land tenure system also presents significant barriers to full compliance.

The Ugandan 1995 Constitution recognises four types of land tenure: freehold, mailo land, leasehold and customary tenure. Customary tenure, the most common form, involves communal ownership by clans or families and lacks formal documentation.

Though legally recognised in Uganda, customary tenure complicates formal land ownership verification, posing obstacles for companies seeking to meet EUDR requirements.

Free, Prior, and Informed Consent (FPIC)

The principle of FPIC is critical for safeguarding the rights of indigenous peoples and local communities. FPIC ensures communities can consent to or refuse activities affecting their rights, land, resources, territories, livelihoods and food security without coercion and with full transparent access to information.

In Uganda, both the 1995 Constitution and the Uganda Land Act 1998 protect FPIC principles. However, their implementation often falls short due to corruption, lack of information, and exclusion from decision-making processes.

Pathways forward: collaboration and adaptation

Uganda’s experience is emblematic of the broader need for multi-stakeholder collaboration and adaptable frameworks to support smallholders in meeting global compliance requirements.

ISEAL Community Members are uniquely positioned to bridge legislative gaps by supporting with verification processes tailored to local contexts.

By adapting to local realities like reducing certification costs and enhancing farmer support, sustainability systems can play a pivotal role in facilitating EUDR compliance, helping to ensure smallholders aren’t left behind.