Council of the EU Adopts New Regulation to Limit Deforestation Worldwide

The Council of the EU announced Tuesday (5-16-23) that it has given the final go-ahead to a regulation that aims to minimize the risk of deforestation and forest degradation associated with products that are placed on or exported from the EU market.

In the press release, the Council noted that the EU is a large consumer and trader of commodities that play a substantial part in deforestation. The new rules aim to ensure that the EU’s consumption and trade of these commodities and products do not contribute to deforestation and further degrading of the forest ecosystems.

The regulation sets mandatory due diligence rules for all operators and traders who place, make available, or export palm oil, cattle, wood, coffee, cocoa, rubber, and soy, from the EU market. The rules also apply to a number of derived products such as chocolate, furniture, print paper, and selected palm oil-based derivatives.

Operators will be required to trace the commodity they are selling back to the plot of land where they were produced. At the same time, the new rules aim to avoid duplication of obligations and reduce the administrative burden for operators and authorities.

In addition, the regulation sets a cut-off date for the new rules on December 31, 2020, meaning that only products that have been produced on land that has not been subject to deforestation or forest degradation after December 31, 2020, will be allowed on the EU market or be to be exported from the EU.