• The workshop was held to gather input for a study on impacts of the European Union's deforestation regulation
  • Participants included representatives of producer associations, trade associations, civil society and government relevant to the coffee and cocoa chain.

This Wednesday, May 24, in Lima, Peru, took place the Workshop to gather input for the study on the impact of the European Union's deforestation regulation on the coffee and cocoa sector.. It was organized by the Coalition for Sustainable Production, Solidarity and Business Alliance for the Amazon, a platform promoted by USAID, Government of Canada and Conservation International. 

What is the European Union (EU) regulation on deforestation? 

According to the Food and Agriculture Organization (FAO), the world has lost 100 million hectares of forest cover in the last decade. The net loss was 50 million hectares out of a total forest area of four billion hectares. Growing global demand for agricultural products is a major driver of deforestation, as it drives agricultural expansion into (tropical) forests and other ecosystems. More than 50% of deforested land is devoted to cropland and almost 40% to pasture.

Faced with this challenge, a new EU regulation will come into force this year that aims to ban agricultural products linked to deforestation and forest degradation. The regulation affects the commodities coffee, cocoa, palm, soy, timber, meat and derivatives. 

 This law is another step in the battle against deforestation and joins a growing number of international agreements and private sector initiatives. Similar regulations are currently being developed in other international markets that are important for Peru. 

The impact assessment study of the EU regulation 

In the Peruvian case, the commodities that could be most affected are cocoa and coffee. The cocoa sector has been implementing the Cocoa, Forest and Diversity AgreementThe agreement between private organizations, government and civil society promotes the differentiation of Peruvian cocoa based on quality, diversity of origin attributes and its restorative and deforestation-free potential. Among its priorities, as defined in the updating of its action plan to 2026, is the adaptation of the sector to the new requirements of the standard.

"The agreement is one of the initiatives of the Coalition for Sustainable Production, which accompanies companies and organizations to comply with the sustainability demands of the market. In the case of the agreement, since its launch we have already been working to adapt as a sector to the new regulations."

 

Angelica Fort , Coordinator of the Cocoa, Forests and Diversity Agreement.

 

Within the framework of the priorities of the Cocoa, Forests and Diversity Agreement, Solidaridad is developing the "Ex ante research on the impact of the EU deforestation regulation on the coffee and cocoa sector in Peru and identification of measures to mitigate negative impacts". The study is co-financed by Solidaridad and Conservation International, through the Business Alliance for the Amazona platform promoted together with USAID and the Government of Canada, which promotes sustainable investments in the Amazon.

Main findings of the study

So far, among the main findings of the study are:

  • The bottlenecks that jeopardize Peru's adaptation to the regulation are mainly linked to traceability, geolocation and legal production.
  • Among the urgent steps are the following:
    • Disseminate more practical information on the new regulation to both the public and private sectors.
    • Raise awareness of the importance of the forest - and start in the regions or districts most at risk of deforestation.
    • Keep informed about implementation rules (the famous guidelines).
    • Solving the legality issue - depends on the state - which requires a practical decision and implementation support (technical assistance to regional authorities, increase of technical teams at regional level.
  •  

" We have seen a lot of data, trying to look at statistics, but also data on forest cover and trends. Regulation is a combination of political discussion, about climate change, emissions, consumption in Europe and deforestation. Politicians have seen a lot of studies that voluntary programs, such as certification, help but it is not enough to stop deforestation." 

Marjoleine Motz - Fair&Sustainable Consulting

During the workshop, working sessions were held on the topics of legal framework, monitoring and traceability, and producer services and incentives. The groups were made up of representatives of producer associations, trade associations, civil society and government relevant to the coffee and cocoa chain.