Why and how we help small business working in deforestation-free value chains
Since 2022, the International Trade Centre (ITC) has convened over 4,000 stakeholders in roundtable discussions on deforestation-free value chains. The discussions showed that to tackle deforestation, small businesses in producing countries should be included and form the centre of partnerships.
The European Union Regulation on Deforestation-free Products (EUDR) is a significant shift in global trade policy as it requires imports to and exports from the EU of cattle, coffee, cocoa, oil palm, rubber, soy, wood (and selected derived products such as chocolate) to be produced without deforestation and in line with the legal framework of the producing country.
These requirements need to be evidenced by geolocation of production sites, traceability, and an overall process that ensures compliance (a due diligence process). While small businesses in producing countries, in most cases, will not have to provide these data points to the importing authorities, their supply chain stakeholders will be requesting these.
For smallholders and micro-businesses, this can feel like an overwhelming task. ITC’s technical assistance and capacity-building can empower businesses to navigate this new regulatory landscape and turn their compliance efforts into opportunities rather than threats – to improve their resilience, competitiveness and positioning in global value chains.
At the heart of ITC’s methodology lies the commitment to simplify compliance without oversimplifying the process. Through targeted workshops, data-sharing tools such as the new Deforestation-Free Trade Gateway, technical support and handbooks, we work directly with small businesses to help them meet EUDR requirements and contribute to the due diligence efforts of EU importers.
What sets ITC apart is not only our expertise in empowering small businesses to thrive, but our long-standing commitment to build inclusive, sustainable value chains.
We recognize that enabling smallholders to stay competitive in global markets is essential, while protecting the ecosystems on which these communities depend.
Our support goes beyond regulatory compliance: we promote sustainable practices that safeguard both forests and the people who rely on them. We invite businesses, policymakers, and partners to join us on this journey. Together, we can demonstrate that farming and trading without harming forests and the environment overall, is not just a regulatory necessity but an achievable and sustainable path forward.
As emerging environmental legislations reshape global trade, it is essential for the entire value chain to adapt. Small businesses, business support organizations, and policymakers each play a crucial role in making deforestation-free trade a reality.
…for small businesses
The EUDR presents both challenges and opportunities.
For small businesses, early engagement is key. They must invest in traceability tools, understand the regulatory framework, and take advantage of ITC’s resources and training.
Compliance is no longer optional: it is a gateway to maintaining and expanding market access.
Entrepreneurs like Bokim Beni Nihoze, founder of Trade Legacy Burundi, are at the forefront of adapting to these new realities.
Bokim Beni Nihoze (on the left)
…for business support organizations
Organizations that support small businesses are vital intermediaries. They can organize capacity-building activities, provide technical support, and serve as bridges between the private sector and policymakers.
One of the most impactful ways business support organizations can help is by facilitating the transfer of knowledge and technology, which enables smallholders to adopt best practices, including using geolocation data for traceability and deforestation risk assessments.
By partnering with ITC, business support organizations can develop and provide tailored workshops and digital solutions that address specific needs.
…for policymakers
Policymakers must create an enabling environment that supports sustainability goals while considering the needs of small businesses. This includes offering incentives for sustainable practices, ensuring that regulations are not unduly burdensome, and providing access to finance and technology. Collaboration with international organizations like ITC is crucial in developing policies that are inclusive and supportive of small producers in affected countries.
By working together, small businesses, business support organizations, and policymakers can ensure that global trade is not only deforestation-free but also inclusive, sustainable, and beneficial for all.
Learn more about ITC’s work on Deforestation-free Value Chains here and for questions, please contact Mathieu Lamolle at lamolle [at] intracen.org (lamolle[at]intracen[dot]org).
