Fairtrade International has expressed a high level of concern over the implementation of the EU’s Deforestation Regulation and an urgent call for clarifications ahead of the legislation’s formal introduction this December.
The social justice organisation notes that while it is in full support of new laws clamping down on irresponsible forestry by requiring companies prove they are not engaging in illegal deforestation activities, as well as delivering enhanced human rights protections for farmers, there are many within global supply chains that stand to suffer.
Fairtrade has expressed formal concern that producer organisations – such as smallholder farmers – will be cut off from trade with the EU market or pushed out of supply chains altogether by larger producers, not because they farm on deforested land, but because of the logistical challenges they face in collecting, managing, and submitting the necessary data.
The European Commission is yet to clarify precisely what data it will require. There is growing concern among the global confectionary industry over the impact the law will have on supply chains when it all comes into force by the end of the year.
Similar fears have been expressed over the accuracy of the current geomapping satellite systems underpinning the law’s monitoring programme. At the same time, the mechanics of who is to pay for the compliance and monitoring systems has also yet to be fully determined.
As it stands, the European Deforestation Regulation applies to companies placing relevant commodities or products on the EU market or exporting those form it. This will include paper, card, and publishing, industries linked to coca farming or livestock farming, palm oil, and those reliant on wood or pulp. Companies will need to demonstrate their products are deforestation-free as of the 2020 cut-off date and are not linked to forest degradation or illegal harvesting and trade.
Currently, larger companies will need to be compliant by 30th December 2024 while smaller enterprises will need to hit the markers by 30th June, 2025.
A statement posted to the Fairtrade International website calls upon the European Commission to address the shortcomings of the EUDR “and help the millions of small-scale farmers at risk.”
The organisation has asked the EC provides an immediate assessment of the legislation’s expected impact on the most vulnerable stakeholders in the global supply chain – small-scale farmers – and their ability to comply with the administrative burden and the compliance costs. It has also called for an EU framework strategy for supply side partnerships with producer countries that ‘create a space for multi-stakeholder dialogue’ and are linked to efficient economic and trade incentives.
Finally, Fairtrade has required the European Commission provides market incentives and funding to assist small-scale farmers in complying with EUDR requirements, insisting that farmers should not have to bear the compliance costs linked to laws imposed by the EU.
To help cooperatives collect data on their members’ farms and their deforestation risks, Fairtrade has recently partnered with the nature tech firm Satelligence. Geolocation data provided for each farm plot is verified by the Satelligence platform as it scans for any deforestation activity within the members’ boundaries. The platform also flags deforestation taking place near these farms, contributing to the cooperatives’ own risk assessments.
EU Deforestation Regulation at Products of Change Conference 2024
The European Deforestation Regulation aims to bring a sharp reduction in greenhouse gas emissions and biodiversity loss by banning products linked to deforestation from the market. Under the regulation, any operator or trader placing products on the EU market linked to cattle, wood, cocoa, soy, palm oil, coffee, rubber, and derived products such as chocolate or furniture will be required to prove their products do not originate from recently deforested land.
With such a scope of industries falling under the regulation’s requirements, the subject of the EU Deforestation Regulation will be a major talking point at this year’s Products of Change Conference – Sustainability in Brands, Licensing, Product, and Retail. To make sure you are armed with the latest on the regulation and its implications for your business, be sure to book your ticket now.
