What legislation is needed to regulate palm oil?
International commitments
Governments must address deforestation, habitat loss, workers' rights, and climate change from palm oil production. Many countries and campaigners call for binding international commitments on tackling deforestation at the United Nation’s international COP climate summits.
COP30, which was held in Belem, on the skirts of the Amazon rainforest, in 2026, saw governments establish a new fund that aims to provide long-term financial incentives for conserving tropical forests. And over thirty governments agreed to secure 160 million hectares of Indigenous and community lands by 2030.
Yet, key agreements fell far short of providing a strong roadmap to halt and reverse deforestation and forest degradation by 2030 - a step that academics say is vital to tackling climate breakdown.
Deforestation laws
The European Union has led the way in introducing legislation to tackle deforestation from palm oil and other products.
In 2023, the union agreed to laws aimed at preventing the sale of deforestation-linked products across the bloc. The law would have reduced EU-driven deforestation by 30 percent, saving at least 72,000 hectares of forest every year from 2030, according to the European Commission’s own assessment.
However, the law was significantly weakened in 2025 following intense lobbying, and its implementation was delayed until the end of 2026.
Major palm oil producing countries like Indonesia and Malaysia have also challenged the law at the World Trade Organisation - an international body that rules on disputes about free trade.
The need to report supply chain emissions
In the absence of legislation, companies are left to choose whether or not to take responsibility for emissions in their supply chains.
In our 2025 Climate Gap Report, we suggested that the first step towards doing this was to report these ‘scope 3’ emissions figures – but also for governments to require companies to do so.
Due diligence
Several countries are adopting ‘due diligence’ legislation to make large companies responsible for various human rights and environmental risks in the supply chains of consumer goods. Such laws could be used to protect against deforestation for palm oil.
France and Germany passed laws in 2017 and 2021. In February 2026, the European Union agreed a similar law - although it was significantly watered down following widespread industry lobbying.
145,000 people signed a petition calling for the UK to adopt its own due diligence laws. The advocacy group Corporate Justice Coalition is leading a campaign to get companies and MPs on board: you can find out more about it on their website.