Ethiopia’s coffee exports at risk from EU deforestation regulations

A new study by ODI Global warns that Ethiopia risks losing up to $453 million in coffee export revenue due to stringent new European Union environmental regulations. The EU's deforestation rules require strict compliance regarding product traceability, geolocation, and legal land use standards for all imports. Coffee shipments that fail to meet these complex verification criteria face potential exclusion from the European market. As coffee is a primary source of foreign exchange for Ethiopia, this regulatory shift poses a significant threat to the national economy. Experts suggest that immediate adaptation to these standards is necessary to protect the sector's market access. Stakeholders are being urged to address these compliance gaps to mitigate potential financial losses.