EU law on deforestation-free products is a reality

On April 19, 2023, the European Parliament adopts a new law aimed at fighting global deforestation in order to tackle climate change and biodiversity loss. The law will require companies to ensure that products sold in the European Union (EU) have not contributed to deforestation and forest degradation, have complied with the relevant legislation of the country of production, including human rights, and the rights of affected indigenous people.

The law does not ban any country or commodity but will require companies to provide a “due diligence” statement confirming that the products they are selling have not come from deforested land or led to forest degradation after December 31, 2020. This applies to products such as cattle, cocoa, coffee, palm oil, soya, and wood, as well as products that contain, have been fed with, or have been made using these commodities, such as meat, chocolate, and other foods. During negotiations, rubber, charcoal, printed paper products, and some palm oil derivatives were added to the list of products covered by the legislation.

Risk-based controls

The new law also includes risk-based controls, where the Commission will classify countries, or parts thereof, as low-, standard-, or high-risk based on an objective and transparent assessment within 18 months of the regulation entering into force. Products from low-risk countries will be subject to a simplified due diligence procedure. The competent EU authorities will have access to relevant information provided by the companies and conduct checks with the help of satellite monitoring tools and DNA analysis to check where products come from.

Penalties 

Penalties for non-compliance with the law will be proportionate and dissuasive, with a fine of at least 4% of the total annual turnover in the EU of the non-compliant operator or trader.

The new law was adopted with 552 votes to 44 and 43 abstentions, and it is expected to have a significant impact on the EU's contribution to global deforestation and forest degradation.

Europarl.europa.eu