Italy’s Quiet Leadership on Zero-Deforestation Palm Oil pietro paganini

Italy’s Quiet Leadership on Zero-Deforestation Palm Oil

While Europe debates yet another delay to the EUDR, something far more interesting is happening on the ground: producing countries are moving ahead. Indonesia and Guatemala are rapidly scaling full traceability and zero-deforestation models, proving that innovation in global supply chains often starts with producers, not regulators.

During a meeting in Rome with Assitol and representatives from leading producer organisations, we examined how this transition is unfolding in practice, and how Italy is emerging as a key player in a story that remains widely overlooked.

Italy’s Quiet Leadership on Zero-Deforestation Palm Oil

The debate around the European Union Deforestation Regulation (EUDR) has become increasingly polarized. Some see it as a historic step; others warn about feasibility and unintended consequences. But beyond Brussels, producing countries are taking concrete action: improving traceability systems, strengthening due diligence, and preparing for a zero-deforestation market, regardless of political uncertainty.

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Italy sits at the centre of this shift. Though often absent from the public narrative, the data tells a different story:
– Italy is the largest importer of Guatemalan palm oil.
– It is the second-largest importer of Indonesian palm oil, after the Netherlands.
– 95% of Italy’s palm oil imports are already RSPO-certified.
– And from January, nearly all imports will be zero-deforestation and fully traceable.

This transformation did not happen because of regulation but because companies invested early. The supply chain has moved ahead with two clear priorities: full traceability and robust due diligence, ensuring the Italian market receives deforestation-free palm oil irrespective of regulatory delays.

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The next challenge is to bring smallholders fully into this progress. They represent a substantial share of global production, yet they face significant barriers: limited access to technology, costly compliance requirements, and lack of direct market linkages. Making the transition inclusive is essential for credibility and for long-term sustainability.

This is where constructive cooperation becomes crucial. Together with Assitol and in dialogue with GAPKI and Grepalma, we will continue working to ensure that the EUDR is improved, simplified, and aligned with real-world conditions. Regulation should encourage progress—not obstruct the remarkable advancements already underway.

Italy’s Quiet Leadership on Zero-Deforestation Palm Oil

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PNR