MFF white paper maps $210 billion financing gap for deforestation-free supply chains

The Mobilising Finance for Forests Program released a white paper proposing a three-pronged financing agenda for deforestation-free commodity supply chains as global forest loss hit 6.7 million hectares in 2024. Indian commodity exporters in palm oil, soy, and timber sectors face tightening market access as the EU Deforestation Regulation takes effect from December 2025.

The white paper, "Deforestation-Free Commodities: Investing in Deforestation-Free Supply Chains as a Strategic Imperative," was released by the Mobilising Finance for Forests (MFF) Program amid 2024 global forest loss of 6.7 million hectares driven by wildfires and agricultural expansion. It targets high-deforestation sectors including palm oil, soy, beef, and wood. Current financing to transition supply chains toward deforestation-free models stands at USD 35 billion against an estimated USD 210 billion required by 2030. The EU Deforestation Regulation (EUDR) enters into force in December 2025 for large operators.

The paper identifies smallholder producers as the most vulnerable link, frequently lacking the capital, certifications, and monitoring systems needed to meet market expectations, leaving many locked out of higher-integrity markets. Affected parties include global financiers, commodity traders, sourcing platforms, and local farmers across palm oil, soy, beef, and wood value chains. Without targeted financial support, producers face exclusion from premium markets, deepening inequality while undermining sustainability goals across commodity systems spanning multiple geographies studied in the report.

Indian agricultural exporters and financiers should prepare for EUDR enforcement from December 2025 and monitor harmonisation of international standards alongside the regulation. The MFF framework recommends identifying capital gaps in high-risk chains, addressing structural barriers to private investment, and deploying catalytic financial instruments at scale. Companies should assess supply-chain exposure to forest-risk commodities, pursue certifications and monitoring systems, and engage sourcing platforms that improve market access. Investors can use the roadmap to align environmental governance with private capital deployment.

Key figure — Financing gap: USD 35 billion current versus USD 210 billion required by 2030