A new European standard will force producers to ensure that their coffee is free of deforestation, which may imply a price climb.
If your morning does not start without coffee, you are in good company. The world drinks about 2 billion cups of coffee a day. However, a European Union law may soon affect their favorite coffee grains – and the farmers who cultivate them.
From 2026, companies that sell coffee in the European Union market will have to prove that their product is “deforestation“This means that each bag of grain, each ground coffee bottle and each express coffee capsule should be tracked to coffee plants on land that have not been deforested since December 31, 2020.
The new rules, which are found in what is known as the EU deforestation regulation, are part of a broader effort to ensure that European consumption does not boost global deforestation.
However, in practice – from the coffee hills from Ethiopia to Brazil plantations – the alteration of the rule can transform the way coffee is cultivated, marketed and sold.
Because the EU is aiming for deforestation
Deforestation is one of the main drivers of biodiversity loss and is responsible for About 10% of global emissions green greenhouse gases. And coffee plantations, along with the production of cocoa, soy and palm oil, which are also covered by new regulations, are known sources of forest loss in some countries.
According to the new EU deforestation regulation, companies will be required to track the exact origin of their coffee – to the area of exploration where grains have been grown – and to provide data from geolocation and documentation of the SUPPLY chain to the EU authorities.
Will also have to present evidence, usually through satellite imagesthat any open area where coffee is grown was free of forests before the 2020 deadline.
The rules were initially scheduled to enter into force at the beginning of 2025, but were postponed after complaints from many countries. Governments and industrial groups of Latin America, Africa and Southeast Asia warned of commercial friction for small properties, and the World Trade Organization received complaints about regulations.
Most companies now need to adapt by December 30, 2025. Small companies have until June 30, 2026.
Possible winners and overdue
The coffee supply chain is complex. The grains are cultivated by millions of farmers, sold to casters and then undergo processors, exporters, importers and roasters before they reach the supermarket shelves. The addition of EU rules means more control points, more bureaucracy and possibly new strategies for supplying coffee beans.
Small explorations may be vulnerable to business losses when new rules come into force. They may lose contracts or market access if they cannot provide the GPS coordinates and non -deforestation documentation required by buyers. This can lead buyers to migrate to larger properties or organized cooperatives that can provide documentation.
If a property cannot provide accurate coordinates of its properties or pay mapping services, it may eventually be excluded from the largest coffee market in the world.
Large coffee producers who already use systems that track grains to specific properties can gain a competitive advantage.
New regulations also include a stricter supervision For countries considered more likely to allow deforestation, which can slow the trade of these regions. As a result, buyers can migrate to regions with lower risk of deforestation.
Even outside Europe, large buyers will probably give priority to grains that can track even nonfloored areas, potentially eliminating small properties that cannot provide evidence at the area. This could reduce availability and increase the price of some types of coffeeleading the properties to bankruptcy. In some cases, EU regulations could redirect unocuing coffee beans for markets like the US.
Help small properties to thrive
For small explorations, success under the new EU rules will depend on Access to Technical Support and low cost tools to track the origin of their cultures. Some countries are developing national systems to track deforestation and are pressuring the EU to invest more in their help.
Small explorations that can comply with rules, often through cooperatives, can become low-risk attractive suppliers for large buyers looking for cultures in compliance.
Change can also boost the Search for sustainability certificationssuch as Rainforest Alliance, 4C Common Code or Fairtrade, which certify only products that do not contribute to deforestation. But even certified explorations will still have to provide accurate location data.
The potential of agroforestry
O Arabica coffeethe best-selling variety of global level has naturally evolved as a understory shrub, performing better performance on colder tall lands with good drainage and often partial shadow. This points to a way that farmers can reduce the risk of deforestation and at the same time cultivate coffee: agroforestry.
Agroforestry involves planting or conservation of shadow trees inside and around coffee plantations to Keep the Tree Cup.
In agroforestry systems, shadow trees can cushion heat and drought, often reducing soil evaporation and moderating water stress of plants. Several field studies show lower evaporation losses and complementary use of water between coffee makers and shadow trees. In some contexts, this can Reduce irrigation needs and the search for fertilizers. Practical tools such as World Coffee Research’s shadow catalog help farmers choose tree species suitable for their location and goals.
Agroforestry is common in Ethiopia, where the Arabica originated, and in some zones of Central America, thanks to the long shadow coffee cultivation traditions and the special demand of the products.
According to the new EU rules, however, even these explorations have to prove that no forests were deforested after 2020.
Why this matters to coffee consumers
For European coffee consumers, the new EU rules promise a more sustainable coffee. But they can also mean Higher prices if compliance costs are echoed in consumers along the supply chain.
For coffee lovers elsewhere, changes in global commercial flows can change where grains are sold and at what price. As EU buyers buy grains that can be tracked to non -deforestted areas, more of these “fully checked” coffees will flow to Europe. American roastors can then face higher prices or a more restricted offer for traceable lots, while not verified grains are discounted or simply avoided by brands that choose to follow EU standards.
