EU deforestation regulation and Ethiopian smallholder coffee farmers: Awareness, compliance capacity, and potential impacts

Working paper 27 Feb 2026 Firms, Trade and Sustainable Growth

The European Union’s Deforestation Regulation, effective from December 2024, will reshape Ethiopia’s coffee sector, where smallholder farmers face land tenure insecurity, climate vulnerability, and limited capacity to meet new deforestation-free requirements. This study assesses farmers’ awareness and compliance capacity, the role of voluntary sustainability standards, and the likely economic and livelihood impacts to inform balanced and inclusive policy responses.