Global Trade Compliance & Sanctions

European Union Deforestation Act: A Step Towards Environmental Protection

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AYUSHI RANJAN
Nov 06, 2023 : 3 Min Read Read

Deforestation has become a very serious threat to the well-being of the global environment. The European Union Deforestation Act by the EU is a significant step toward combating deforestation and ensuring a balance between forest conservation and economic activities. The implementation of this act is expected to bring down greenhouse gas emissions and prevent biodiversity loss.

Details on the European Union Deforestation Act

According to this act, Europe will not participate in the trade of commodities originating from recently deforested lands or contributing to forest degradation. Any trader who indulges in the trade of these commodities in the EU market, or exports outside the EU will have to prove that the products have not originated from any land that has been deforested after 31st December 2020.

Suppliers will have to issue “due diligence” statements confirming that the product’s origin is not a deforested land or has not led to forest degradation after 31st December 2020 to get the allowance to sell these commodities in the EU. Suppliers also need to make sure that the commodities comply with supplying countries’ labor and human rights laws, including local Indigenous communities’ rights.

Commodities regulated under this act

This European Union Deforestation Regulation Act applies to goods produced on or after 29 June 2023 and covers the following seven commodities-

  1. Cattle
  2. Cocoa
  3. Oil Palm
  4. Rubber
  5. Soya
  6. Wood
  7. Derivatives of the above products (meat products, leather, chocolate, coffee, palm nuts, palm oil derivatives, glycerol, natural rubber products, soybeans, soy-bean flour and oil, fuel wood, wood products, pulp and paper, printed books)

How will it help the environment?

EU is a major economy and consumer of these commodities and the production of these commodities is linked to deforestation and forest degradation. With this act, the EU will be able to protect the rapidly degrading forests that are being destroyed to create agricultural lands and facilitate the production of goods. The objective of this act is to minimize the contribution to deforestation by European consumption within the EU or across ­­the globe.

It also addresses all deforestation driven by agricultural land expansion to produce the abovementioned commodities.

Conclusion

In the era where environmental concerns are peaking, the European Union Deforestation Act is an applaudable initiative in the global fight against deforestation, and it will help to mitigate the effects of deforestation on climate change. It reflects the EU's dedication to environmental preservation and ethical trade practices. This act is a promising step towards reducing carbon emissions caused by consumption within the EU by at least 32 million metric tonnes a year. EU has set a benchmark for other countries to follow its lead in becoming responsible trade practitioners.

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