## Countries, businesses and trade officials call for EU to rethink deforestation regulation
A growing number of governments, international trade organisations, and businesses are advocating for the European Union to reconsider a deforestation regulation slated to come into effect in December. Critics suggest that the regulation may unfairly discriminate against nations with forest resources and negatively impact their exports. Conversely, supporters of the EU Deforestation Regulation (EUDR) argue that it will play a pivotal role in combating global forest degradation.
Several commodity associations have expressed their backing for the regulation’s objectives, but have raised concerns about potential gaps in its implementation that could adversely affect their operations. Environmental groups have lent their support, emphasising that the EUDR has the potential to help curtail global deforestation, a major contributor to carbon emissions after fossil fuels.
### Understanding the EU Deforestation Regulation
The EU Deforestation Regulation, commencing on December 30, will prohibit the sale of forest-derived products within the 27-nation bloc unless companies can verify that their goods are not linked to deforestation. The regulation covers a wide range of products, including cocoa, coffee, soy, cattle, palm oil, rubber, wood, and derivatives of these commodities. Big corporations will be required to demonstrate that their products originate from land where forests have not been cut since January 1, 2021.
Small businesses along the supply chain will also have to meet these obligations and will bear legal responsibility in the event of non-compliance. Violations could lead to financial penalties and restricted access to the EU market. Furthermore, the regulation introduces a ranking system that categorises countries or regions based on their risk of non-compliance with the EUDR.
### Calls for Delays and Concerns
Leading exporters of affected commodities, such as Brazil, Indonesia, and the Ivory Coast, have raised objections to the regulation, citing potential trade barriers, negative impacts on small farmers, and disruptions to supply chains. Politicians within the EU, including German Chancellor Olaf Scholz, have requested a suspension of the regulation, with some member states seeking to mitigate its stringency.
Lobbying groups representing affected businesses have highlighted issues with the regulation’s stringent traceability requirements and a flawed information entry system, which could pose challenges for companies in submitting their due diligence statements.
### Conservationists’ Hopes for EUDR
Environmental organisations are optimistic that the EUDR will aid in protecting forests, particularly given Europe’s significant role in deforestation caused by imports. In Brazil, where wildfires have devastated regions amid a severe drought, 25 environmental groups have expressed their endorsement for the regulations in a letter to the President of the European Commission, Ursula von der Leyen.
The regulation is seen as a pioneering effort to address deforestation issues globally, setting a precedent for other nations considering similar legislation. Conservationists view the EUDR as a crucial step in tackling climate change, biodiversity loss, and safeguarding ecosystems.
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