As the European Union tightens its environmental regulations, the Malaysian Sustainable Palm Oil (MSPO) certification is emerging as a vital tool in the global effort to produce palm oil more responsibly. With the EU Deforestation Regulation (EUDR) coming into force from 30 December 2025 the role of MSPO in demonstrating compliance is more important than ever.
Whilst the EUDR aims to ensure products sold in the EU are not linked to deforestation, for palm oil to enter the EU market under these new rules, companies must prove their supply chains are clean, legal, and traceable back to land that hasn’t been deforested since December 31, 2020. That’s where MSPO certificate is already exceeding legislation.
MSPO and EUDR: Shared Goals, Strong Foundations
The MSPO certification system, which has been mandatory in Malaysia since 2020, already reflects many of the EUDR’s core values. It prohibits the production of palm oil on deforested land, promotes transparency, and requires sustainable practices from both plantation owners and smallholders. It has reforested 109 million trees, and counting, since 2021 and has committed to maintaining 50% rainforest canopy across its territories, 26% above the EU’s forested cover.
The MSPO certificate also offers a traceability mechanism – the MSPO Trace system – which helps monitor the journey of palm oil from plantation to product. This directly supports Articles 9 and 10 of the EUDR, which focus on due diligence and traceability.
Moreover, MSPO certification can serve as verifiable evidence for EU-based companies that need to prove they’re sourcing palm oil responsibly. It provides a credible framework for environmental compliance and responsible trade.
Bridging the Gaps
Still, there’s work to do. While the MSPO certification system broadly aligns with the EUDR, full recognition requires greater transparency and stronger data integration.
One major hurdle is geolocation data. Under the EUDR, palm oil shipments must be traceable down to plot-level coordinates. This is especially challenging for Malaysia’s 400,000+ smallholders. Efforts are already underway to close these gaps and make MSPO fully traceable. The Malaysian government and palm oil industry are exploring solutions to standardise data sharing, support smallholders, and strengthen the digital infrastructure that underpins traceability. These enhancements will not only help MSPO meet EUDR expectations but also reinforce its position as a global benchmark in sustainable certification.
A Tool for Transition, Not a Finish Line
MSPO is not a silver bullet, but it is a critical part of the solution. It offers a structured, government-backed certification that supports deforestation-free commitments, and it’s already helping companies prepare for EUDR compliance.
With the right upgrades and greater EU engagement, the MSPO certificate could become a globally recognised assurance system that empowers sustainable palm oil trade – not just within Europe, but worldwide.
As consumers and regulators demand more from the palm oil industry, MSPO proves that palm oil can be produced responsibly. The road to EUDR recognition isn’t over, but MSPO is firmly on the map – and gaining ground.
