A recap of our webinar on the new EU “Zero Deforestation” proposed Regulation
Together with three Colombian chambers of commerce, namely the Cámara De Comercio de Bucaramanga, the Cámara de Comercio de Barrancabermeja and the Cultura Cámara De Comercio de Pereira, on the 30th of June Etifor organised a webinar to explain the new rules of the proposed EU “Zero Deforestation” Regulation.
Between 1990 and 2020, some 178 million hectares of forests were lost worldwide, with Africa and South America being the worst affected regions. The main cause of this loss is deforestation linked to the expansion of agricultural production. The European Union (EU) can also be held responsible, as it is the second biggest importer of global trade-related deforestation (16%) after China (24%). 90% of deforestation caused by EU-27 imports is due to the production of 10 commodities: soya, palm oil, beef, wood derivatives, cocoa, coffee, rapeseed, rubber, maize, sugar cane.
Therefore, with the aim of curbing deforestation in producing countries, the European Commission is now discussing the adoption of stricter requirements for the import of 6 main commodities: beef, soya, palm oil, coffee, cocoa, timber and some by-products.
Colombia is a country potentially very much affected by the new proposed Regulation. Today, Colombia is among the top 10 commodity producing countries at risk of deforestation. Between 2002 and 2019, the country lost around 1.5 million hectares of rainforest. Among the main causes are illegal logging, illegal mining, agricultural and pastureland expansion.
During the webinar “Cadena de suministro libres de Deforestación”, we presented the novelties contained in the proposed Regulation, focusing in particular on the product requirements, the obligations for the actors involved and the due diligence system. Regarding product requirements, the draft Regulation states that all products marketed in Europe will have to be deforestation-free and legally produced. In particular, products will have to come from land that has not been subject to deforestation after 31 December 2020. Furthermore, all products will have to be covered by a due diligence declaration. In this regard, the key elements of the due diligence system are accessibility of information, including geo-localisation of production, risk assessment and mitigation.
Although the new obligations primarily affect importers and traders in Europe, it is important that exporters also take steps to anticipate change. Increased consumer responsibility shall be backed up by a sustainable supply from the producer countries. In particular, suppliers will have to provide information and guarantees to the EU companies that the products comply with the new rules before they are shipped to the EU, including the precise link (geo-localisation) between the traded commodity and the parcel on which it was grown and manufactured. On the other hand, the proposed Regulation also offers important opportunities for exporters, giving a competitive advantage to more organised and responsible companies, promoting more sustainable production practices and supporting nature conservation initiatives.
The webinar was attended by around 30 Colombian producers, federations and companies operating in the sectors affected by the proposed “Zero Deforestation” Regulation, especially cocoa, coffee and palm oil. During the event, participants showed great interest in the proposed Regulation, but also great concerns about the high compliance costs and potential discrimination, as only certain commodities and certain countries or regions are covered. In this sense, our EMMA approach was created precisely to help companies comply with the new obligations, maximising competitiveness and the opportunities offered by the Regulation. Find out more about EMMA!