- An area larger than the European Union's forest area has been deforested between 1990 and 2020.
- Livestock, cocoa, coffee, oil palm, soybeans, timber, rubber, coal and printed paper products are covered by the new regulations.
- Human rights and indigenous community rights are added as additional requirements.
Source: European Parliament News
In order to combat climate change and biodiversity loss, the new law obliges companies to ensure that products sold in the European Union are not linked to deforestation and forest degradation.
As long as a country or commodity is not banned, companies will only be allowed to sell products in the European Union if the supplier of the product has issued a "due diligence" statement confirming that the product does not originate from land that has been deforested or has led to forest degradation, including irreplaceable primary forests, after December 31, 2020.
As requested by the Parliament, companies must also verify that these products comply with the relevant legislation of the country of production, including human rights legislation, and that the rights of the affected indigenous peoples have been respected.
Products covered
The products covered by the new legislation are: livestock, cocoa, coffee, palm oil, soybeans and wood, including products that contain, have been fed on or have been made from these commodities (such as leather, chocolate and furniture), as in the Commission's original proposal. During the negotiations, MEPs successfully added rubber, charcoal, printed paper products and various palm oil derivatives.
The parliament also secured a broader definition of forest degradation that includes the conversion of primary or naturally regenerating forests to plantation forests or other wooded land.
Risk-based controls
The Commission will classify countries, or parts thereof, as low, standard or high risk through an objective and transparent assessment within 18 months after the entry into force of this regulation. Products from low-risk countries will be subject to a simplified due diligence procedure. The proportion of checks is performed on operators according to the country risk level: 9% for high risk countries, 3% for standard risk and 1% for low risk.
EU competent authorities will have access to relevant information provided by companies, such as geolocation coordinates, and will carry out checks with the help of satellite tracking tools and DNA analysis to verify where the products originate from.
Penalties for non-compliance shall be proportionate and dissuasive and the maximum fine shall be at least 4 % of the total annual EU turnover of the offending operator or trader.
The new law was approved with 552 votes to 44, with 43 abstentions.
Quote
After the vote, rapporteur Christophe Hansen (EPP, LU) said: "Until today, our supermarket shelves have too often been filled with products covered with the ashes of burned rainforests and irreversibly destroyed ecosystems that had wiped out the livelihoods of indigenous peoples. All too often, this happened without consumers knowing about it. I am relieved that European consumers can now rest assured that they will no longer be unwitting accomplices to deforestation when they eat their chocolate bar or enjoy a well-deserved coffee. The new law is not only key in our fight against climate change and biodiversity loss, but should also break the deadlock that prevents us from deepening trade relations with countries that share our environmental values and ambitions."
Next steps
The text now also has to be formally approved by the Council. It will then be published in the EU Official Journal and will enter into force 20 days later.
Fund
The Food and Agriculture Organization of the United Nations (FAO) estimates that 420 million hectares of forest, an area larger than the EU, were converted from forest to agricultural use between 1990 and 2020. EU consumption accounts for about 10% of this global deforestation. Palm oil and soy account for more than two-thirds of this.
In October 2020, the Parliament used its prerogative in the Treaty to ask the Commission to present legislation to halt global deforestation driven by the EU. Agreement with EU countries on the new law was reached on December 6, 2022. By adopting this legislation, the Parliament responds to citizens' expectations regarding the implementation of responsible forest management to protect and restore biodiversity, as expressed in Proposals 5(1), 11( 1), 1(1) and 2(5) of the conclusions of the Conference on the Future of Europe.
