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Regulation proposal on deforestation-free supply chains: minimising the risk of deforestation and forest degradation associated with products placed on the EU market | 17 November 2021

The proposed new rules intend to ensure that the products that EU citizens buy, use and consume on the EU market do not contribute to global deforestation and forest degradation.

Patrick Shepherd/CIFOR

date:  21/12/2021

On 17 November 2021, the Commission proposed a Regulation to curb EU-driven deforestation and forest degradation (Regulation on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010).

The proposed new rules intend to ensure that the products that EU citizens buy, use and consume on the EU market do not contribute to global deforestation and forest degradation. The main driver of these processes is agricultural expansion linked to soy, beef, palm oil, wood, cocoa and coffee, and some of their derived products.

The proposal does not address only illegal deforestation, but all deforestation, requiring that the products placed on the EU market are both deforestation-free and produced in accordance with the laws of countries of production.

The Regulation sets mandatory due diligence rules for companies that want to place these commodities on the EU market, with the aim to ensure that only deforestation-free and legal products are allowed on the EU market. The Commission will use a benchmarking system to assess countries and their level of risk of deforestation and forest degradation driven by the commodities in the scope of the regulation. The obligations for operators and member states authorities will vary according to the level of risk of the country of production as previously benchmarked, with simplified due diligence duties for products coming from low risk countries and enhanced scrutiny for high risk countries.

The Regulation will have significant international implications, especially on the trade of forest-related products. To address these implications, the Commission will step up dialogue with other big consumer countries; engage multilaterally to join efforts to curb deforestation and forest degradation; and support partner countries through Forest Partnerships and other forms of cooperation to facilitate the sustainable management of forests and the establishment of deforestation-free supply chains.

By promoting the consumption of ‘deforestation-free' products and reducing the EU's impact on global deforestation and forest degradation, the new rules are expected to reduce greenhouse gas emissions and biodiversity loss. Finally, tackling deforestation and forest degradation will have positive impacts on local communities, including the most vulnerable people like indigenous peoples, who rely heavily on forest ecosystems.

The proposal is part of a broader plan of action to tackle deforestation and forest degradation first outlined in the 2019 Commission Communication on Stepping up EU Action to Protect and Restore the World's Forests.

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