Safeguarding Sustainable Supply Chains: New EU Regulation Halts Deforestation for Import Products
Berlin, June 29, 2023 – The EU has enacted a groundbreaking regulation at the end of June aimed at securing sustainable supply chains. The regulation prohibits the import of products such as palm oil, coffee, natural rubber, or soy into the EU if they have been sourced from deforested or damaged forests. Proof of a deforestation-free supply chain becomes a prerequisite for importing such goods.
The rapidly escalating deforestation worldwide has prompted the EU to take stricter measures. According to estimates by the United Nations’ Food and Agriculture Organization, an area larger than the EU has been lost in the past two decades due to unsustainable agriculture practices. The new regulation is intended to help halt this alarming trend.
The German Federal Ministry of Agriculture, spearheading the effort within Germany, sees the regulation as addressing two sustainability goals of the UN Agenda 2030: sustainable consumption and forest preservation.
The regulation, which came into effect in June, imposes stringent due diligence requirements. Areas used to produce raw materials that are to be imported into the EU must not have been deforested or damaged since December 2020. The regulation also mandates that production must respect international human rights, and local laws on land rights and environmental protection must be adhered to.
Cem Özdemir, the Federal Minister of Food and Agriculture, stressed the importance of the regulation: “The regulation is a crucial building block for sustainable agriculture worldwide, with positive ecological and social effects in the countries of origin of the raw materials and products. Forests are a vital factor globally in the fight against the climate crisis and biodiversity loss.”
By requiring companies to comply with due diligence and maintain transparent and deforestation-free supply chains, the German Federal Ministry for the Environment, Steffi Lemke, believes that “we are promoting worldwide forest and nature conservation, safeguarding essential ecosystems, and promoting biodiversity through sustainable production. Additionally, we are fostering cooperation with the countries of origin of such products and protecting the rights of indigenous communities.”
Bundesentwicklungsministerin (Federal Minister for Development) Svenja Schulze stresses the importance of on-site support to facilitate the transition: “It is now crucial to support the new regulations from a development policy perspective and work together with our partners to secure supply chains that do not rely on deforestation.”
The EU regulation not only aligns with Germany’s efforts to promote sustainable practices but also seeks to empower consumers to make informed choices in favor of sustainable products. Recognizing the impact of European consumers’ choices on deforestation, the regulation aims for fairer trade rather than less trade. The German government also intends to support small-scale farmers in producing without deforestation and providing evidence of such practices.
For producers in developing and emerging countries, a transition period is granted. Smaller enterprises must comply with the due diligence requirements by June 2025, while larger companies, especially in the supply chain, must do so by December 2024.
Germany is already actively engaged in various initiatives for deforestation-free supply chains. The country supports concrete measures for sustainable land-use planning with forest preservation in partner countries like Ethiopia, Brazil, Côte d’Ivoire, Ecuador, Indonesia, and Colombia. Furthermore, Germany collaborates with the private sector to establish deforestation-free and traceable agricultural supply chains.
In addition to funding various international multistakeholder partnerships like the Tropical Forest Alliance, as well as German forums for sustainable cocoa and sustainable palm oil, Germany is currently financing the development of an “OECD-FAO Handbook on Due Diligence for Deforestation-Free Supply Chains” to support companies.
Germany, together with the EU Commission, is investing over 25 million euros to assist key producer countries such as Brazil, Ecuador, Zambia, and Indonesia in establishing the necessary conditions for deforestation-free supply chains.
https://www.bundesregierung.de/breg-de/aktuelles/entwaldungsfreie-produkte-2193744