Malaysia’s sustainable palm oil certification (MSPO) has been officially recognized by the European Union as a reliable standard to comply with the upcoming EU deforestation regulation. This recognition strengthens MSPO’s position as the national framework for sustainable palm oil in Malaysia, the world’s second-largest exporter, and provides assurance for exporters targeting the European market.

The EU regulation, effective December 2024, requires companies selling palm oil, soy, beef, timber, cocoa, coffee, leather, and related products to ensure their supply chains have not been linked to deforestation since the end of 2020. Originally launched as a voluntary scheme, MSPO became mandatory in January 2020 and is audited by independent third parties to ensure credibility and compliance.

The certification authority highlighted that MSPO’s digital traceability system provides full supply chain visibility, assuring buyers and regulators that certified palm oil is legal and deforestation-free. Malaysia’s Plantation and Commodities Minister Johari Abdul Ghani emphasized that the recognition confirms Malaysia’s leadership in sustainable palm oil and ensures that over 500,000 smallholders are fully integrated into the sustainability agenda.