EU approves law prohibiting sale of deforestation products – 04/19/2023 – Market

The European Parliament, which creates the laws that will be applied by the 27 countries of the European Union (EU), approved this Wednesday (19) a rule that prohibits the purchase of products derived from untying forests.

It’s not just about the felled wood. Any crop that uses places where there has been illegal deforestation, such as in the Amazon, will be subject to purchase sanctions by EU countries.

There is a list of primary products in the law: cattle, wood, soybeans, coffee, cocoa, rubber and oil palm. Any other product that is fed (in the case of soy) or derived from these commodities are also covered in the text, such as leather, chocolate, furniture, charcoal, printed paper products, palm oil derivatives, among others.

The text will now be endorsed by the European Council and published in the official EU journal. Twenty days after that, the 18-month period begins for companies to adapt to the new standards. Around September 2024, therefore, the so-called “deforestation-free products law” comes into force.

“This means that all companies, whether Brazilian or not, will have to guarantee — by creating an audit process for their products — that the product they manufacture, for example, beef, does not come from land that has been deforested,” he said. the green German deputy Anna Cavazzini, vice-president of the delegation turned to Brazil and president of the Internal Market Commission.

A Sheetthe organization’s sustainable consumption manager Fern (fern) Nicole Polsterer said the law will send incentives and encourage the production of more sustainable products.

“But the European Union alone is not capable of stopping the deforestation of forests. We consume a lot of cocoa, for example. But in the case of meat, countries like Brazil sell much more to other nations outside the EU. there may be other actions with other commercial partners”, he said.

The voting score this morning in Brussels was largely in favor of the law, taking 93% of the valid votes. There were 552 in favor and 44 against. There were 43 abstentions.

“Our supermarket shelves have often been filled with products covered in the ash of burning rainforests and irreversibly destroyed ecosystems that have destroyed the livelihoods of indigenous people,” said Luxembourgish rapporteur Christophe Hansen of the European People’s Party after the vote in Brussels.

“Now, European consumers can be sure that they will no longer be unwitting accomplices in deforestation when they eat their chocolate bar or enjoy a well-deserved coffee”, he added.

No country or specific commodity is prohibited. However, companies will only be able to sell these goods in the EU after the supplier issues an audited document confirming that the product does not come from land deforested or led to forest degradation after December 31, 2020.

European companies will also have to verify that these goods comply with the legislation of the country of production, including on human rights, and that the rights of the affected indigenous peoples have been respected.

EU authorities will have access to information provided by companies. To do so, it will use geolocation coordinates, monitor the regions by satellite and even carry out DNA analyzes to verify the origin of the products.

A second list, that of countries, will start to be put together from now on, and should be ready in a year and a half. Exporting nations such as Brazil, Ghana, Malaysia and Indonesia will be classified as low, medium or high risk of deforestation.

This will determine the level of inspection of products from these countries. For the highest risk countries, 9% of the products and 9% of the selling companies will pass the detailed checks.

In the case of medium risk, the percentage drops to 4%, while those with lower risk will have only 1% of production checked in depth.

The rate of deforestation and forest degradation, the rate of expansion of agricultural land for the commodities mentioned in the law and the trends in the form of production of these commodities in each country will be taken into account for the list.

A European company that fails to comply with the “deforestation-free products” law will be subject to paying a fine of 4% of its annual turnover.