A new study by Etifor and the University of Padua shows that oil palm cultivation can significantly reduce its environmental impact when embedded in controlled, traceable and sustainability-driven supply chains. The findings challenge the simplistic narrative of palm oil as the sole driver of deforestation, shifting the debate toward scientific evidence, innovation, certification and supply chain accountability.
Key Messages
- Sustainable palm oil is no longer just a commodity: it is becoming one of the world’s most traceable, transparent and closely monitored supply chains.
- The real challenge is not to demonize sustainable palm oil, but to accelerate supply chain transformation: more traceability, more accountability, more sustainability. That is the key message emerging from the Etifor and University of Padua study.
- Deforestation risk linked to palm oil in Italian consumption is declining: the Etifor and University of Padua study points to a real shift. What matters are the trends in the data, not simplified narratives.
Global Deforestation is Slowing Down
Global deforestation is slowing down. And today, this is no longer just a hope, it is a data-driven trend.
According to the recent “Deforestation Made in Italy” study by Etifor and the University of Padua, the global annual rate of forest loss declined from 17.6 million hectares per year between 1990 and 2000 to 10.9 million hectares between 2015 and 2025.
Italy is also showing encouraging signs, with a progressive reduction in deforestation risk embedded in national consumption. This trend is further confirmed by a report from Global Forest Watch and the University of Maryland’s GLAD laboratory, which found that primary tropical rainforest loss declined by 36% in 2025 compared to the previous year.
Against this backdrop, the debate around sustainable palm oil is also evolving. For years, palm oil was portrayed as the “perfect villain” of globalization, shaped by alarmist campaigns, “palm oil-free” labels and the belief that removing a single ingredient could save tropical forests.
Yet behind this shift are years of investment, stronger public policies, greater supply chain traceability and growing pressure on governments and companies. Sustainability is no longer just about communication: it is increasingly becoming an industrial and competitive factor.
Sustainable Palm Oil: From Deforestation Villain to Supply Chain Transformation
This is where the Etifor study challenges one of the most established narratives of the past decade.
Palm oil is still widely perceived as a symbol of global deforestation. But the data tells a more nuanced story: the supply chain most criticized, monitored and regulated over the last twenty years is also becoming one of the fastest-transforming.
According to researchers from the University of Padua, the deforestation risk associated with sustainable palm oil consumption in Italy has shown “a marked decline over the years.” And this is the data point that changes the conversation.
Between 2005 and 2023, palm oil still represented the commodity with the highest embedded deforestation risk in Italian consumption, an estimated 201,800 hectares, equal to 34% of the total. But the key point is not the static snapshot: it is the direction of change. The trend is declining.
In other words, supply chains under pressure are reacting. Certifications, stronger traceability, tighter controls, investments and new international regulations are driving a tangible transformation across the sector.
The EUDR is Accelerating a Transformation Already Underway
The EUDR does not emerge in a regulatory vacuum: it is accelerating a transformation already underway across many global supply chains.
For years, major producing countries have been strengthening environmental standards, controls and traceability systems, driven by international pressure, ESG investments and the need to maintain access to Western markets.
And the most emblematic example is sustainable palm oil itself. The supply chain most demonized over the past twenty years is now also one of the most prepared to meet EUDR requirements, following more than a decade of scrutiny from NGOs, investors and international institutions.
The Etifor and University of Padua study highlights a key shift: more and more companies are treating deforestation risk as an industrial and strategic issue, adopting concrete tools to strengthen traceability, supply chain oversight and environmental policies.
Sustainability is no longer just a reputational lever. It is becoming economic infrastructure, a market requirement and a competitive advantage across global supply chains.
Beyond the Slogans: Sustainability Is Measured by Data
For years, the debate was trapped in slogans, “palm oil yes or no”, growth versus forests, economy versus environment. But today, the data tells a different story: the real challenge is not eliminating a commodity, but transforming supply chains.
That is the paradigm shift highlighted by the Etifor study: less ideology, more traceability, transparency and accountability. Sustainability is no longer just communication, it is becoming an industrial issue shaped by rules, innovation and measurable supply chain responsibility.
The data shows that agricultural production, economic growth and forest protection can evolve together. The challenge today is not stopping development, but making it sustainable.
(Reproduced with permission from Competere. Read the original article here, or in Italian here. Spanish version can be read here.)
















