akar.earthMass balance: Definition
What is mass balance in supply chains? How it works in RSPO and other schemes, and why the EUDR does not accept mass balance for deforestation-free claims.
Mass balance is a chain of custody model in which certified and non-certified material can be physically mixed, while the volumes are tracked administratively so that the amount sold as certified does not exceed the amount of certified input bought. The buyer gets a volume claim, not a guarantee that the physical product came from certified sources.
Why it matters
Mass balance lets processors support sustainable production without the cost of separate tanks, silos and lines. It is widely used in palm oil (including under RSPO), cocoa and other commodities. But it breaks the physical link between product and origin. That is why the EU Deforestation Regulation does not accept mass balance: EUDR needs each product to be traceable to plots that are deforestation-free and legal.
How it works
- A mill or refinery records certified inputs and outputs over a set period.
- It may sell up to the certified input volume as mass balance certified, adjusted by conversion rates.
- Physical product may contain any mix of certified and uncertified material.
By contrast, segregation and identity preservation keep compliant material physically separate. See EUDR vs RSPO for how the schemes differ.
Indonesia and Southeast Asia angle
Indonesian palm oil refineries and kernel crushers often receive fruit or crude oil from many mills and smallholders, some traceable and some not. Moving from mass balance to segregated EUDR-compliant streams means investing in traceability, separate storage and possibly dedicated supply bases. Smaller mills relying on independent smallholders face the hardest shift. See EUDR and palm oil.
Some certification schemes are adapting their chain of custody options to support EUDR, for example by adding segregated or EUDR-specific supply models. Check with the scheme owner what each certificate covers.
Common mistakes
- Assuming a mass balance certificate covers EUDR.
- Mixing EUDR-compliant and unknown supply in one tank and losing the claim.
- Confusing mass balance with book and claim, which has no physical link at all.
Plan segregation early if you supply EU buyers.
Frequently asked questions
Can mass balance palm oil be sold under EUDR?
Not on the basis of mass balance accounting. EUDR requires that every product be traceable to compliant plots. Mixing with material of unknown origin is not allowed.
Is mass balance still useful?
Yes, for certification schemes that accept it and for supporting sustainable production. It just does not meet EUDR's plot-level traceability test.