Block discusses delaying the implementation of the pioneering regulation by a year. Some sectors that need more time defend the measure, while those that are ready and environmentalists criticize it. Forests are being cut down and degraded at an alarming rate, especially in the tropics, and agricultural land expansion is to blame for nearly 90%. reduction in forest cover, says a study by the Food and Agriculture Organization of the United Nations (FAO).
To combat the problem, the European Deforestation Regulation (EUDR), a pioneering standard, was created. The idea was that EU importers had to demonstrate that their supply chains of products such as coffee, chocolate, leather, paper, tires and furniture do not contribute to deforestation anywhere in the world. Or they would risk fines of up to 4% of their income.
The legislation, which is part of the European Green Deal, was negotiated in detail over several years and adopted by the European Parliament in December 2022. Heralded by supporters as a turning point in the global battle against forest loss, it came into force in June 2023. and is expected to be implemented starting from the end of this year. But now the EU is considering postponing it for another year.
What would the postponement mean?
Analyzes indicate that, in 2023, the world will lose approximately 37 thousand square kilometers of tropical forest, which is an area almost equivalent in size to Switzerland.
“We are facing a global emergency,” said Anna Cavazzini, a member of the European Parliament for the German Green Party. “I just think it’s irresponsible to delay legislation for another year in this situation.”
According to EU studies, a 12-month delay would lead to an additional global forest loss of around 2,300 square kilometres.
This would also open Pandora’s box and give room to dilute the content of the law, Cavazzi added.
“With this delay, a new legislative proposal is effectively introduced into the process, to which amendments can also be made, and there are many, many actors who would prefer to abolish or weaken the law.”
Who supports the postponement and why?
Ministers of Agriculture and Environment, as well as citizens, were involved in the drafting of the law, but since it was passed, several agriculture ministries – including those of Austria, the Czech Republic, Finland, Italy, Poland , Slovakia, Slovenia and Sweden: requested postponement of implementation.
Among the reasons given are that companies are not ready for implementation due to an inadequate benchmarking system.
“It seems that especially some European member states did not do everything possible to prepare their stakeholders, industry associations, chambers of commerce in time for this law,” said Nicole Polsterer, campaigner for sustainable consumption and production at Fern, an international forest protection NGO based in Brussels.
In recent years, Polsterer has been closely involved in the formulation of the EU deforestation regulation and said that the requirements “do not substantially go beyond the already applied EU timber regulation, so this is not a valid argument for delaying the law.”
A more understandable argument, Polsterer said, is that the European Commission should help exporting countries implement regulation through digital tools. They would help companies upload due diligence statements or show whether countries have a high, medium or low deforestation risk. But these tools won’t be fully operational until December 2024.
“And now it’s actually a little late for some companies to prepare for the new law,” Polsterer said. “But there are other solutions to this problem than simply postponing implementation altogether.”
Cocoa producers push for new law
While some associations, including the European Timber Trade Federation and the European Livestock and Meat Trade Union, as well as large US timber companies, say they will not be able to meet the EUDR requirements in time, others are already more than ready.
Ivory Coast and Ghana are the world’s leading cocoa producers, and Europe is their largest market.
Côte d’Ivoire has already created electronic identification cards for farmers that help track cocoa beans from farms to export ports and allow them to access electronic means of payment, while guaranteeing producers a price for their products in light of the new EU regulations.
Ghana, in turn, has already mapped all of the country’s cocoa, established an end-to-end traceability system with the aim of reducing compliance costs for small producers and successfully carried out a pilot project.
In this context, a group of 120 civil society and farmers’ organizations from Ghana and Côte d’Ivoire recently wrote to EU leaders, expressing deep concern at efforts to delay the law.
Some giants in the cocoa and chocolate industry – including Nestlé, Mars Wrigley and Ferrero – also defend the law and oppose the postponement.
“This would only serve to increase uncertainty and undermine the significant investments our member companies have made in preparation for its implementation,” they wrote in an open letter.
Polsterer agrees. Remember that companies like Michelin have already invested millions in new systems to be able to comply with the law by the end of 2024 and have offered special contracts with rewards to their suppliers.
“They are ready. And now they would lose that competitive advantage if the law was delayed because others missed the deadline. I don’t think that’s a good sign for business security and for Europe’s relationship with trading partners,” he said .
Take responsibility and send a message
The European Parliament will vote this Thursday (14/11) whether the EUDR will be postponed.
Polsterer expects the legislation to proceed as planned. “Large-scale agriculture is the main driver of tropical deforestation, especially in Brazil. And as the EU, we play a huge role in this through our consumption. This law is a way to look at Europe’s footprint, take action and retain people responsible companies,” he said.
This would also send a message to other deforestation-related markets around the world, he added. “If a major market like the EU adopts these types of supply chain requirements,” Polsterer said, “then the hope is that other markets will follow suit.”
Source: Terra
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