Gaël Coronel
Regulatory & Public Affairs SUISSENÉGOCE
Switzerland is a global hub for grain trading. As new sustainability and decarbonisation rules bite, what will it take to keep trade moving—and food secure—without crushing competitiveness?
Switzerland hosts the headquarters or major offices of many leading grain traders, making it a primary hub for commodity trading. Trading activities are estimated to account for around 10% of Switzerland’s GDP, and more than 22% of global commercial vessel movements are operated by Swiss-based traders—grain traders being a key driver of these figures.
Favourable framework conditions explain this concentration: political stability, predictability, neutrality, fiscal attractiveness and a pragmatic regulatory environment. Swiss banks also played a decisive role, having pioneered commodity trade financing. Today, however, grain traders face unprecedented regulatory complexity as climate, ESG and supply-chain frameworks reshape costs, logistics and market access. Two prime examples are the IMO Net-Zero Framework and the EU Deforestation Regulation (EUDR).
Shipping’s net-zero path
By the time this article is published, the International Maritime Organization is expected to have adopted its Net-Zero Framework regulation, setting a binding target of net-zero GHG emissions by 2050. This entails introducing GHG pricing and incentives for energy transition in shipping. Rewards for using “zero to near-zero” carbon fuels raise commercial, technical, environmental and political challenges. Robust certification and life-cycle assessment of fuels will be essential, alongside safeguards against land-use change and unintended consequences for food security. The role of biofuels in shipping decarbonisation will be debated.
For grain trade, the impact is clear: higher freight rates will feed into prices, influencing flows and supply-chain routes. Low-margin traders will be hit particularly hard, while importing countries are demanding stronger guarantees on food security. As representatives of charterers, SUISSENÉGOCE advocates regulatory certainty, predictability and investability at the IMO—conditions needed to unlock private investment in shipping’s energy transition.
EUDR: traceability’s price
The EUDR requires that only deforestation-free products (including palm oil and soy) be placed on the EU market, with geolocation data provided before commercialisation—a step-change in compliance for agri traders. This will raise costs and incentivise sourcing from “low-risk” countries, reshaping supply chains. Producing countries with weaker compliance capacity risk socio-economic impacts—especially smallholders—and markets may see exclusion, higher consumer prices, costly rerouting and greater volatility.
EUDR also exposes the difficulty of aligning sustainability rules with profitability, particularly for SMEs active in commodity trading, since thresholds are based on EU turnover. In practice, some Swiss SMEs have hired three to four compliance staff—up to 15% of total workforce—cost that doesn’t add to profitability but is necessary for access. Considering that EUDR may be postponed for the second time, companies need predictability to comply with this regulation, which is a decisive move towards traceability and transparency.
What traders need
The central question remains: how to balance sustainability and competitiveness? The IMO Net-Zero Framework and EUDR both show that predictability and open dialogue between regulators and industry are essential. If frameworks are clear, internationally harmonised and fairly enforced, traders can adapt and invest against ambitious sustainability goals. This is especially vital for grain—not just another commodity, but the foundation of global food security. SUISSENÉGOCE calls for pragmatic regulation, developed in close partnership with the private sector, so rules are enforceable, practical and, ultimately, seen as opportunities rather than obstacles.
* This article is published as part of Miller Magazine’s media partnership with Global Grain Geneva 2025, organized by Fastmarkets.
* Gaël Coronel is responsible for Regulatory & Public Affairs at SUISSENÉGOCE, the Swiss association representing commodity trading, shipping and financing.