Countries, businesses and trade officials are calling on the EU to rethink deforestation rules

JAKARTA, Indonesia — A growing number of governments, international trade organizations and businesses are calling on the European Union to reconsider its deforestation regulation, which is scheduled to come into force in December.

Critics of the regulation say it will discriminate against countries with forest resources and harm their exports. Supporters of the EU’s deforestation regulation, or EUDR, say it will help fight forest degradation on a global scale.

Several commodity associations said they supported the aims of the regulation, but gaps in its implementation could harm their businesses.

Environmental groups have expressed support, saying EUDR will help slow global deforestation, which is the second-largest source of carbon emissions after fossil fuels.

Here’s a look at the EU’s deforestation regulation:

What is EUDR and what products will it affect?

From December 30, the EU’s deforestation regulation will ban the sale of forest products within the 27-nation bloc if companies cannot prove their goods are not linked to deforestation. Its scope is wide and includes cocoa, coffee, soy, cattle, palm oil, rubber, wood and products derived from these raw materials.

To sell these products in Europe, large companies will have to prove that they come from areas that have not been deforested since January 1, 2021, regardless of whether deforestation was legal in the countries of origin. Small businesses further down the supply chain are subject to the same obligations and bear legal liability in the event of breaches. However, they are not responsible for due diligence on some of their products that have already been reviewed.

Failure to comply may result in financial penalties and restricted access to the EU market.

The regulation also introduces a benchmarking system that classifies countries or regions based on their risk of non-compliance with the EUDR into three categories: low, standard and high.

“We have been working closely with many stakeholders to help them prepare for the entry into force of the regulation,” European Commission spokesman Adalbert Jahnz said at a recent press conference in Brussels.

“We are monitoring the situation on an ongoing basis. We are working hard to ensure that all conditions for the efficient implementation of the law are met, he said.

Why are there calls for delays in EUDR implementation?

Officials from leading exporters of affected goods – including Brazil, Indonesia and Ivory Coast – oppose the regulation, saying it could act as a trade barrier, negatively impact small farmers and disrupt supply chains.

“This regulation ignores local circumstances and opportunities, national legislation, certification mechanisms, their efforts to combat deforestation and the multilateral obligations of producing countries, including the principle of common but differentiated responsibilities,” the Indonesian Embassy in Brussels, where the EU is based, said in a statement. Indonesia is the world’s largest exporter of palm oil and many other forest-based goods.

Politicians in the EU have also expressed concerns or asked for a postponement. German Chancellor Olaf Scholz asked for the regulation to be suspended. Austria and some agriculture ministries in EU member states have also tried to weaken the regulation.

The head of the World Trade Organization has reportedly asked Brussels to reconsider its ban on imports from deforested areas, saying the EU has yet to issue clear compliance guidelines.

The World Trade Organization declined a request for comment from The Associated Press.

Lobbying groups representing companies that will be affected – such as animal feed and tire producers – have also raised concerns about the regulation’s stringent traceability requirements and the flawed information entry system and databases where companies have to submit declarations of due diligence.

How do conservationists hope EUDR will help protect forests?

According to a 2021 World Wildlife Fund report, Europe ranked second in import-driven deforestation in 2017. Environmental groups said EUDR would help reduce this.

In Brazil, where wildfires have been raging during a record drought, 25 environmental groups voiced their support for the rules in a letter sent to European Commission President Ursula von der Leyen, saying companies and government offices were preparing to implement the new rules. requirements.

“This groundbreaking regulation represents the most ambitious legislative attempt to address these problems anywhere in the world,” the Brazilian organizations wrote in their letter. “Every second counts to protect human life today and humanity’s future, avoid climate change and halt biodiversity loss.”

The regulation could also help set a precedent for other countries considering legislation that would have a similar effect, said Julian Oram, policy leader of international environmental organization Mighty Earth.

“This is a catalyst for governments around the world to say enough is enough: that we cannot continue to import or produce goods linked to deforestation, that there must be a cut-off point – and now.”

___

Associated Press journalist Aniruddha Ghosal in Hanoi contributed to this report.