The European Commission published a proposal for a Regulation that aims to remove products that have been manufactured or produced in a way that lead or was linked to deforestation from the European market.
Deforestation and land degradation to expand agricultural land and produce food, feed and raw materials across the world occurs at an alarming rate, which directly or indirectly leads to climate change and loss of biodiversity. A growing world population and increasing demand for agricultural products, especially those of animal origin, is expected to increase demand for agricultural land and put additional pressure on forests, while changing climate patterns will affect food production, necessitating a shift to a sustainable production that is not leading to further deforestation and forest degradation.
The due dilligence placed on companies would involve products and materials, including wood, palm oil, soy, cocoa, rubber, coffee and beef and anything that is derived from these products or materials.
According to the Commission, this new legislation will cut carbon emissions worldwide by about 32 million tonnes and save around 72,000 hectares of forest per year.
Once the Regulations are in force, the companies would need to report and be able to prove that their products are not linked to deforestation or they will face a fine, up to four per cent of their annual turnover.
The proposed Regulation, once it becomes law in 2023, will require operators and traders to adapt within 18 months of coming into force. Smaller companies will have two years to adjust.
Chairman of the European Parliament's environmental committee, Pascal Canfin, said: "It's the coffee we have for breakfast, the chocolate we eat, the coal in our barbecues, the paper in our books."
This Regulation might prove costly for organisations in countries based in South America and South-East Asia, however, the EU said that it will work with outside countries to improve their regulation capacity to drive sustainability.
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