New EU legislation against deforestation

To combat climate change and biodiversity loss, the European Union has implemented new regulations regarding the importation of products such as livestock, cocoa, coffee, palm oil, soy, and timber, as well as products containing or made from these goods. Companies must ensure that their suppliers do not originate from deforested lands after December 31, 2020 (including irreplaceable primary forests) and that they comply with the legislation of the producing country (including human rights and indigenous peoples’ rights).

The European Parliament has also obtained a broader definition of forest degradation to include the conversion of primary forests or forests undergoing natural regeneration into plantation forests. The products covered have been expanded to include rubber, coal, printed paper products, and certain palm oil derivatives.

The Commission will objectively and transparently assess countries or parts of countries as presenting either a low or high risk within 18 months of the legislation’s entry into force. Products from low-risk countries will be subject to a simplified procedure, while suppliers will be monitored based on the country’s risk level.

EU competent authorities will have access to relevant information provided by companies, such as geolocation coordinates. They will conduct checks using satellite monitoring tools and DNA analysis to verify the origin of products. Sanctions for non-compliance should be proportionate and deterrent, with a maximum fine representing at least 4% of the total annual turnover in the EU of the non-compliant supplier or operator.

The final text was adopted on April 19, 2023, with 552 votes in favor, 44 against, and 43 abstentions, marking an important milestone in the fight against deforestation and the promotion of more sustainable and responsible trade.

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