#SEATINIAtCOP31 Uganda Pavilion: “Developing Sustainable Livelihoods as a Response to Unilateral Climate-Related

Event Concept Note

Title: “Developing Sustainable Livelihoods as a Response to Unilateral Climate-Related

Measures.”

1. Background

Agriculture is a major driver of global tree cover loss, with permanent agriculture responsible for 33% of likely permanent loss between 2001 and 2024. In response, the European Union (EU), which is one of the largest consumers of deforestation-linked products, adopted the EU Deforestation Regulation (EUDR) in 2023. The regulation aims to guarantee that imports into the EU are not sourced from land deforested or degraded after 31 December 2020. It covers timber and six agricultural commodities: soy, palm oil, rubber, cattle, cocoa, coffee, and their derivatives.

While  the EUDR is already in force, compliance  begins on 30 December 2025 for large enterprises and 30 December 2026 for SMEs. However, the regulation has faced pushback due to its complexity, cost, and potential to exclude  smallholder farmers,  especially in Africa,where agriculture is central to livelihoods, contributing 30–40% of GDP and employing 65–70% of the labour force. Recent amendments are largely projected to have minimal benefits for African exporters due to a complex classification system used by the EU.

Africa’s exports of EUDR-covered products are heavily dependent  on the EU, with 27% of total exports going to the  bloc between 2021 and 2023. Cocoa  and coffee  are particularly vulnerable, with 59% and 43% of exports, respectively, destined for the EU. Failure to comply could cost the continent USD 11 billion annually in lost export revenue.

Smallholder farmers, who  dominate African agriculture, face significant barriers to compliance, including limited access to finance, technology, and traceability systems. While the EUDR is well-intentioned, it risks deepening inequality and disrupting economies already facing structural challenges.

Beyond compliance, the EUDR also presents an opportunity for African economies to invest in the modernisation of their agricultural sectors by strengthening traceability systems, land- use data, digital infrastructure and sustainable production practices. If supported by adequate financing, technology transfer and public investment, these systems can serve broader development objectives beyond access to the EU market, including improving agricultural productivity, strengthening regional value chains, supporting value addition and enhancing the competitiveness of African producers across multiple markets. The priority, therefore, is to ensure that compliance  investments contribute  to long-term structural transformation rather than impose additional costs that disproportionately burden smallholder farmers

This session will examine  how Africa  can foster sustainable  livelihoods  in response to the EUDR, as  millions who  depend on  covered-commodity exports  now  face stricter environmental scrutiny. The discussion will highlight the regulation’s risks and opportunities and propose  actionable  pathways to ensure African producers, especially smallholders, can sustain their livelihoods. This side event can help build momentum  for a climate-adjusted, inclusive trade future for Africa in the Agriculture sector, in which smallholder farmers are not marginalised.

2. Objectives

• Create awareness amongst key stakeholders of the EUDR and its potential impacts on

the livelihoods of smallholder farmers in Africa.

• Identify pathways and recommendations to mitigate the adverse impacts of the EUDR

on African economies.

3. Outcomes

• Advocacy leading to African voices reshaping the design and equitable implementation

of the EUDR.

• Collaboration to support the measures necessary for Africa to adjustits trade, including

for sectors affected by the EUDR.

• An established framework for future stakeholder engagements on supporting adaptation

for Agriculture market access.

4. Expected Participants

Civil Society Actors, Policymakers, academics, business leaders, trade experts, etc.