Deforestation-free supply chains

Today, companies and traders in the EU have 18 months to adapt to new rules on deforestation-free supply chains. These have entered into force after the consent of the European Parliament and the EU countries. They aim to ensure that a number of goods placed on the EU market do not contribute to deforestation and forest degradation in the EU and elsewhere in the world.

“This law will not only help to protect the world’s forests, it will also increase the demand for deforestation-free products. All countries will continue to be able to sell their goods in the EU, provided they can prove that they are free of deforestation. We are very interested in working with our international partners to make this regulation a success.

Environment Commissioner Virginijus Sinkevičius said

The Regulation is a key building block in the fight against climate change and the decline in biodiversity. It imposes a duty of care on all companies concerned when placing the following goods on the EU market or exporting them from the EU: Palm oil, beef, soy, coffee, cocoa, wood and rubber and products thereof (such as furniture or chocolate). These raw materials were selected on the basis of a thorough impact assessment, identifying them as the main cause of deforestation due to the expansion of agriculture.  

Obligations for companies

Operators and traders must demonstrate that the products are both deforestation-free (i.e. on land not produced after 31. Have been deforested in December 2020) and are legal (in accordance with all relevant legislation in force in the producer country).

Companies will also be required to collect accurate geographical information on the agricultural land on which the products they purchase have been produced so that they can be verified for compliance. Member States must ensure that non-compliance leads to effective and dissuasive sanctions.

The list of collected raw materials is regularly reviewed and updated, taking into account new data such as changing deforestation patterns.

Small businesses will benefit from a longer adjustment period.

Benchmarking system of the European Commission

The Commission will introduce a benchmarking system that assesses countries or parts thereof and their risk of deforestation and forest degradation, high, normal or low, taking into account the expansion of agriculture in the production of the seven raw materials and their derived products. Obligations for companies depend on the level of risk. 

Source

EU Commission, press release, 2023-06-29.

Supplier

European Commission

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