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An area larger than the EU was lost to deforestation between 1990 and 2020, with EU consumption accounting for around 10% of the losses
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Cattle, cocoa, coffee, palm oil, soybeans, timber, rubber, charcoal and printed paper products fall under new rules
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Human and indigenous rights added as additional requirements
The new law obliges companies to ensure that a number of products sold in the EU do not come from deforested land anywhere in the world. All to fight climate change and biodiversity loss
On Tuesday morning, MEPs reached a provisional agreement with EU governments on the matter a new law on non-deforestation products. This act will oblige companies to verify and issue the so-called "due diligence" declarations that goods placed on the EU market have not led to deforestation and forest degradation anywhere in the world after December 31, 2020. Under the agreed text, while no country or commodity as such will be banned, companies will not could sell their products in the EU without such a declaration. According to the MEPs' proposal, companies will also have to verify compliance with the relevant laws of the country of production, including on human rights, and that the rights of indigenous peoples are respected.
The new law would guarantee European consumers that the products they buy do not contribute to the destruction and degradation of forests, including irreplaceable primary forests, thus reducing the EU's contribution to climate change and global biodiversity loss.
Range
The products covered by the new rules are: cattle, cocoa, coffee, palm oil, soybeans and timber, including products that contain, have been fed with or have been produced with these goods (such as leather, chocolate and furniture), as in the original Commission proposal . During the discussions, MEPs successfully added rubber, charcoal, printed paper products and a range of palm oil derivatives. Parliament also provided a broader definition of forest degradation. It includes the conversion of primary or naturally regenerating forests into plantation forests or other woodland, and the conversion of primary forests into planted forests.
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No later than one year after entry into force, the Commission will assess whether to extend the scope to other woodlands. No later than two years after entry into force, the Commission will also assess the extension of the scope to other ecosystems, including land with high carbon stock and high biodiversity value. At the same time, the Commission will also assess the need to oblige EU financial institutions to provide financial services to their clients only when they consider that there is only a negligible risk that these services will not lead to deforestation.
Risk-based controls
Competent EU authorities will have access to relevant information provided by companies, such as geolocation coordinates, and will carry out checks. For example, they can use satellite monitoring and DNA analysis tools to see where products come from.
The Commission will classify countries or parts thereof as low, standard or high risk within 18 months of the entry into force of this Regulation. Part of the audits of entities will be carried out according to the level of risk of a given country.
Penalties for non-compliance must be proportionate and dissuasive, with the maximum amount of the fine set at at least 4% of the total annual EU turnover of the non-compliant operator or trader.
Agreement on the new law. Next steps
Parliament and the Council will have to formally approve the deal. The new law will enter into force 20 days after being published in the Official Journal of the EU, but some articles will become applicable 18 months later.
Source: European Parliament
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