The European Parliament Adopts New Law to Fight Global Deforestation
An area larger than the EU was lost to deforestation between 1990 and 2020, with EU consumption causing around 10% of losses
Cattle, cocoa, coffee, palm oil, soya, wood, rubber, charcoal and printed paper products are covered by the new rules
Human rights and the rights of indigenous people were added as additional requirements
On 19 April, the European Parliament adopted the European Commission’s Proposal for a Deforestation Regulation. Companies will only be allowed to sell products in the EU if the supplier of the product has issued a so-called “due diligence” statement, confirming that the product does not come from deforested land or has led to forest degradation, including irreplaceable primary forests, after 31 December 2020.
According to the voted text:
The Commission should continue to work in partnership with producer countries, international organisations, and relevant stakeholders through multi-stakeholder dialogues, reinforcing its support and incentives regarding protecting forests and the transition to deforestation-free production.
The EU Observatory on deforestation, forest degradation will be set up to better monitor changes in the world’s forest cover and related drivers. It will also cooperate with the competent authorities, relevant international organisations and bodies, research institutes, non-governmental organisations, operators, traders, third countries and other relevant stakeholders.
The products covered are cattle, cocoa, coffee, palm oil, soya and wood, including products that contain, have been fed with or have been made using these commodities (such as leather, chocolate and furniture). During the negotiations, MEPs successfully added rubber, charcoal, printed paper products and a number of palm oil derivatives.
The Parliament also secured a wider definition of forest degradation that includes the conversion of primary forests or naturally regenerating forests into plantation forests or into other wooded lands.
The Commission will classify countries as low-, standard- or high-risk based on an objective and transparent assessment within 18 months of this regulation entering into force.
Penalties for non-compliance shall be proportionate and dissuasive and the maximum fine must be at least 4% of the total annual turnover in the EU of the non-compliant operator or trader.
Traders should be responsible for collecting and keeping information to ensure the transparency of the supply chain of relevant products which they make available on the market.
Due Diligence requirements in the Regulation
Prior to placing relevant products on the market or exporting them, operators shall exercise due diligence with regard to all relevant products supplied by each particular supplier.
The due diligence includes:
The collection of information, data and documents needed to demonstrate that the product is deforestation-free, it has been produced in accordance with the relevant legislation of the country of production; and is covered by a due diligence statement.
Risk assessment measures.
Risk mitigation measures.
Next steps
The text now also has to be formally endorsed by Council. It will then be published in the EU Official Journal and enter into force 20 days later.