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"New proposed EU law to tackle global deforestation lacks ambition on finance and human rights", 17 November 2021
The proposed law, published today, aims to prevent products linked to deforestation and forest degradation being consumed in the EU, such as soy, beef, palm oil, timber, coffee and cocoa by requiring companies and traders to check and mitigate such risks in their supply chains.
The situation is urgent, with deforestation a key driver of the climate crisis – if deforestation were a country, it would rank third in CO2 emissions, after China and the US. The EU has an outsized role in global deforestation in international trade.
Key measures in the proposal include:
An explicit focus on environmental sustainability of products on the EU market, which doesn’t rely on varying national definitions of “legal” or “illegal” deforestation and instead includes all deforestation.
Due diligence requirement: businesses would be required to show that the risks of deforestation and forest degradation have been mitigated prior to placing a product or commodity on to the EU market.
Mandatory traceability requirements including geo-localisation of the point of origin of the product, thus allowing identification of where commodities were harvested and produce.
Enforcement mechanisms, including sanctions to ensure that those responsible for not complying with the law are held accountable.
The Commission has also listened to the evidence and not relied on certification schemes that would have given a green lane for industries to sidestep due diligence obligations.
However, the current proposal contains some critical loopholes, which risk undermining the proposed law. For the regulation to be an effective tool to combat the climate and ecological emergencies we are facing, the European Parliament and Council must address the following problems:
Human rights and protections for Indigenous Peoples. The draft fails to respect international human rights standards and does not mention protection for Indigenous Peoples’ rights and the obligation for operators to obtain their Free, Prior and Informed Consent (FPIC). [1]
No rules for the financial sector. The draft law does not cover EU financial institutions and suggests that other existing EU tools are “well suited” to address the financing that goes into deforestation. However, those tools have no accountability mechanisms to prevent banks or investors to continuously making problematic deals with harmful agribusinesses. Global Witness’s recent investigation, Deforestation Dividends, showed how EU banks and investors have raked in €401 million in deforestation-linked revenues off the back of €30.6 billion worth of deals with agribusiness companies linked to the destruction of climate-critical forests and human rights abuses. [2]
No redress for affected communities. The law fails to include mechanisms for communities harmed by non-compliance with the law to claim redress and remedy. The law should include civil liability provisions so that communities whose rights have been violated can bring legal claims against the businesses responsible.
Omission ofkey commodities linked to deforestation, such as rubber and maize.
Exclusion of deforestation in savannahs and peatlands, which could lead to deforestation pressure shifting away from forests and towards these other critical ecosystems...
Finnish companies face varying levels of preparedness for EU sustainability regulations, with a key challenge including regulatory uncertainty created by the EU, a new study finds.
The EU Parliament approved a one-year delay for companies to comply with the deforestation regulation, now set to apply from December 2025 for large operators and June 2026 for small businesses.
The new guide by Forest Peoples Programme outlines how indigenous and forest peoples can use the EU Deforestation Regulation and the Corporate Sustainability Due Diligence Directive to address corporate-linked human rights violations and environmental harm.
The EU Parliament has sent the EUDR back to the committee for interinstitutional trilogue negotiations to grant companies an additional year for implementation.
Nestlé, Ferrero, Unilever and Mars have joined calls by other food and drink manufacturers in opposing the European Union’s delay to deforestation laws.
The Cocoa Coalition, comprising companies and civil society organizations, supports the EU Deforestation Regulation (EUDR) and urges swift adoption of the delayed implementation without reopening negotiations, while also calling for support to smallholder farmers for compliance.
Friends of the Earth Europe and 225 organizations urge the EU to reject a proposal delaying the EU Deforestation Regulation, emphasising its importance in combating deforestation and supporting human rights.
The EU's anti-deforestation regulation faces criticism for potentially allowing major deforestation contributors to avoid being classified as "high risk," which could weaken the regulation's effectiveness.
The article argues that the EU's anti-deforestation law should prioritize input from frontline communities, as governments in Malaysia and Indonesia are undermining Indigenous rights and providing unreliable forest data.
New analysis by Earthsight reveals European consumers have been buying beef and leather from firms linked to illegalities in the Brazilian Amazon uncovered by the Environmental Investigation Agency. According to Earthsight this serves as a reminder that without the EU Deforestation Regulation, European consumption will continue to drive deforestation and rights abuses overseas.
The companies consider it important that the European Union adopts a robust law that minimises the risk of conversion and degradation of natural ecosystems (alongside deforestation and the degradation of natural forests) as well as human rights violations, associated with commodities and products placed on the EU market.
A delegation of indigenous, human rights, and environmental organisations published a statement urging the European Commission to include independent civil society groups in ongoing key talks with Malaysia and Indonesia over its anti-deforestation rules.
Companies – and the EU Competent Authorities that have the responsibility of implementing the law - now have 18 months to prepare before the law comes into action, at the end of 2024.
While the law is a historic first, it fails to include strong provisions to protect the land rights of Indigenous Peoples and local communities, who time and time again have proven to be the best guardians of the forests, says NGO Fern.
EU legislators reached political agreement in the early hours of Tuesday, 6 December, to pass a new law to ensure products on the EU market are not linked to the destruction or degradation of forests. WWF and Greenpeace welcome the law as breakthrough but also point to some of its weaknesses.
Negotiations between the Commission, Parliament and Council are set to finalise next week. One crucial provision of the draft law currently being targeted by certain EU member states, is the protection of the rights of indigenous peoples and local communities.
A delegation of MEPs will now take the Parliament's position to negotiations with the EU Member States, who agreed a range of changes in the EU Council in June to weaken key elements of the proposed law.
Measures would oblige banks to conduct due diligence to prevent the financing of deforestation, boost protections for indigenous communities, and add rubber and leather to the list of imported products that would be screened for deforestation links.
The Council adopted its negotiating position (general approach) on a proposal to limit the consumption of products contributing to deforestation or forest degradation.
Almost all plantations linked to deforestation are currently owned by just three multinational companies, which together have made deals worth billions of euros with European banks.
Indonesian civil society groups call for the EU proposal to be strengthened by including SMEs, a complaint mechanism, and by considering the impact on small holders, indigenous groups and communities
Lessons from the implementation of the EU Timber Regulation show that Member States’ Competent Authorities often fail to meaningfully implement and enforce the law in practice, argues Earthsight
Some EU member states want more time to implement the upcoming anti-deforestation law, which includes due-diligence obligations, citing concerns about the administrative burden that SMEs might face.
The undersigned organisations, welcome the European Commission’s proposal for a new EU regulation on deforestation-free products. It is now up to the European Parliament and Member States to preserve and improve the essential elements of the Commission’s proposal and deliver a strong and ambitious law.
Civil society organisations and representatives of Indigenous communities all over the world call on the EU to require businesses to respect land rights in anti-deforestation rules
Cameroonian activists rallied in front of the EU delegation in Yaoundé to demand the block to cease support for rubber linked to deforestation, and to call for an ambitious EU legislation on forest commodities
The fate of the proposals on (i) minimising the risk of deforestation and forest degradation associated with products placed on the EU market and (ii) sustainable corporate governance is now unclear, raising concerns among civil society.
The organisations call on the EU to ensure that its upcoming legislative measures are effective and fully uphold their rights as set out in international law, and in line with the EU’s own commitments.
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