EU Recognizes Malaysia MSPO Certification Under Deforestation Regulation

The European Union has officially recognized Malaysia's Sustainable Palm Oil (MSPO) certification as a credible and effective standard to comply with the EU Deforestation Regulation (EUDR), which takes effect in December 2025. This regulation mandates companies trading commodities such as soy, beef, palm oil, and timber to ensure their products come from land free of deforestation since 2020. MSPO, initially a voluntary scheme and made mandatory in 2020, provides legal assurance, strict no-deforestation compliance, and a digital traceability system covering the entire palm oil supply chain, including over half a million smallholders. The EU's endorsement highlights MSPO's role as Malaysia's national framework for sustainable palm oil, reinforcing global trust and transparency in sustainable sourcing. Malaysian Plantation and Commodities Minister Johari Abdul Ghani emphasized that this recognition confirms Malaysia's leadership in sustainable palm oil production and supports smallholder inclusion in sustainability efforts. The updated EU guidance also clarifies due diligence obligations for operators and traders under the deforestation regulation to strengthen compliance and responsible trade.