Fairtrade secures EU backing to help SMEs meet deforestation rules

Fairtrade International has secured EU funding to help small and medium-sized enterprises (SMEs) prepare for the incoming European Union Deforestation Regulation (EUDR). The project — called “Life fairthrive: empowering businesses to thrive fairly under the EUDR” — is backed by the EU’s LIFE Programme and will run for 36 months from 1 June.

The EUDR takes effect on 30 December 2025, with a grace period until 30 June 2026 for micro and small businesses. It mandates that products sold in the EU must not be linked to deforestation. 

“This grant and the project that it will fund will assist companies in EU member states,” says Andreas Kratz, Fairtrade International’s director of global products, programs and policy. “It will also contribute to fairer, greener, and more resilient supply chains.”

The project will roll out sector-specific, multilingual training and guidance materials to simplify compliance. These resources will translate EUDR provisions into actionable steps and incorporate case studies to support implementation.

Fairtrade will also host webinars, workshops, and participate in industry events to raise awareness and promote knowledge sharing. It aims to foster peer-to-peer learning and support across sectors impacted by the regulation.

Existing traceability tools will be piloted to support SME compliance. Fairtrade will provide training, evaluate tool effectiveness, and share insights to promote adoption of best practices.

Fairtrade International leads the project in collaboration with Fairtrade Germany, Max Havelaar France, Fairtrade Belgium, Fairtrade Italy, and Fairtrade Finland — which hosts the Human Rights and Environmental Due Diligence Centre of Excellence.

The initiative also extends to other markets. Belgium will coordinate with the Netherlands and Luxembourg, Germany with Austria, and France with Spain via Fairtrade Ibérica. Fairtrade Finland will engage SMEs in Estonia, Latvia, and Lithuania.

Additional outreach will occur via Fairtrade’s broader EU network, including national organisations in Denmark, Ireland, and Sweden, and marketing partners in Poland, the Czech Republic, and Slovakia. Project materials will be shared to maximise impact across the bloc.

Fairtrade’s standards already include forest protection requirements that align with or exceed EUDR rules. The organisation also supports producer groups with geolocation data, deforestation monitoring, and risk management tools.

Earlier this year, Fairtrade launched a separate deforestation-free cocoa initiative in Ghana, co-funded by the German government’s International Climate Initiative and Fairtrade Germany.