EU Deforestation Regulations Need Partner Countries to Work
As the various legislative bodies of the European Union look to reduce deforestation associated with imports into the Union, its worthwhile to look at the Deforestation Regulations and what stakeholders are saying.
Various European stakeholders have expressed their opinions
As the various legislative bodies of the European Union look to reduce deforestation associated with imports into the Union, its worthwhile to look at the Deforestation Regulations and what stakeholders are saying.
Various European stakeholders have expressed their opinions
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-From MVO the Netherlands organization for oils and fats:
“Collaboration is necessary to arrive at a workable and practical implementation of the EU regulation for Deforestation-free supply chains. This is the conclusion of speakers and participants at the well-attended meeting on 21/2 that MVO organized together with @Het_Comite and @Nevedi”
-From Business Europe
“Yes 👍 to an EU framework on #DueDiligence. But more realism, proportionality & workability needed for it to work. The 🇪🇺 business community urges @Europarl_EN and @EUCouncil to take 7⃣ recommendations of businesses:
-From FEDIOL, which represents EU vegetable oil & protein meal industry association and the interests of European oilseed crushers, vegetable oil refiners and bottlers.
“The #deforestation law sets an ambitious milestone in the 🇪🇺 action for climate change & biodiversity. Many practical points need to be dealt with now for the implementation to ensure inclusion, availability of supply and limit #supplychain disruptions.”
What is noteworthy of these public statements, is that they came from key industry stakeholders in Europe. The concerns of these major European industry groups on the EU’s Deforestation Regulations and the associated Due Diligence Directive (CSDDD) should be heeded by the European Parliament.
Business Europe further expressed another serious concern over the competitiveness of European businesses, as EU ambitions to clean up commodity supply chains introduces more red tape and regulations.
At best, the EU ambitions to stop imported deforestation could clear the conscience of European consumers. At worst, these ambitions will simply hurt Europe’s competitiveness in business while delivering a minimal impact on reducing global deforestation.
Importance of Smallholder Inclusion
One of the key issues, which has been expressed by multiple European business groups, is the exclusion of smallholders who produce coffee, cocoa, palm oil and other commodities targeted by the Deforestation Regulation.
In the palm oil industry, a CIFOR report on smallholders indicated that:
“They’re also the fastest-growing producer group in Indonesia: the total area cultivated with oil palm by smallholders is expected to grow from approximately 40 percent of the total national acreage in 2016 to over 60 percent by 2030.”
For the consumer favorite, cocoa, The Conversation published a damning report on chocolates.
“Despite recent media attention exposing illegal deforestation from cocoa farming in critically protected ecosystems, these countries recently experienced the world’s highest rates of increase in deforestation in the world.”
As for coffee, Huffpost coverage, Our Coffee Addiction Could Destroy Earth’s Tropical Forests, had warned in 2016 that the daily “cup of joe” was bad for tropical forests.
With millions of small farmers taking down tropical forests for cocoa, coffee and palm oil, the EU Deforestation Regulations could end up as a pompous over-regulation if small farmers are excluded.
The European NGO, Solidaridad, is well aware of this as they continue to push the project to “Reclaim Sustainability!”
Solidaridad shared “5 essential steps that the EU, governments & companies must take for the long-awaited deforestation-free products regulation to actually work in practice. https://loom.ly/FHwuyCE”
Highlights from the essential steps included:
“Immediately develop a comprehensive EU strategic framework for engagement with producer countries. So far there is no indication that the European Commission has started developing such a framework – it should start right away.
Urgently enter into dialogue with producer countries. The EU must adequately inform stakeholders, including farmers, their cooperatives and the private sector, about the regulation. This cannot wait until the regulation is in force.”
Who is going to pay for EUDR?
It is easy enough for policy makers in Brussels to make demands on businesses that have been identified in importing AND exporting commodities associated with deforestation but who will pay?
In a webinar organized by Solidaridad, the key to reducing smallholder deforestation is better pricing for farmer produce.
“As Brussels sets out rules for companies to protect human rights, nature and the climate, known as corporate sustainability due diligence, their message was strikingly unambiguous: If Europe wants sustainable supply chains, companies must take responsibility for the impact of their purchasing practices and pay farmers better prices. As long as smallholder farmers and workers live in poverty, many of Europe's goals are unachievable.”
The historical failure of Europe’s markets to support a living wage for workers or fair price for farmers anywhere, dooms the EUDR to failure unless meaningful compromises are made.
EU businesses concerned about higher costs for raw materials, must offer pricing that is not tied to global commodity markets. Producing countries, on their part, can absorb the upstream costs of meeting EUDR requirements with national certification programs for coffee, cocoa and palm oil.
This is the most realistic arrangement between the EU and producing countries in order to maintain the competitiveness of European products and meet the corporate obligations of the regulations. Sharing the costs of meeting EUDR makes absolute sense as long as exports to the EU offers premium pricing.
National Mandatory Programs Over Third Party Certification
Third party certifications have attempted for decades, to certify tropical commodities only to be accused of harming forests while using child labor for cocoa or child labor and environmental ruin for coffee.
The failure of third party certification schemes for cocoa and coffee will become a non issue as major producing countries like Ecuador, introduce national programs for these consumer staples.
Ecuador launched its national certification scheme for deforestation-free coffee and cocoa production at the UN Climate Change Conference (COP27) in Egypt in November. The certification scheme creates a bridge between Ecuador’s foreign commodity trade and its national climate action.
Ecuador’s national program for cocoa and coffee has precedents in the national certification of palm oil from Malaysia and Indonesia, both of which are pegged to national commitments to fight climate change. Colombia, one of Latin America’s top exporters of palm oil to the EU, has made similar national commitments to deforestation-free palm oil production. Malaysia’s new Deputy Prime Minister, Fadillah Yusof, has repeated the country’s commitment to producing palm oil sustainably.
It is not coincidental that these producers of coffee, cocoa and palm have retained their forest coverage throughout the years of their development. It has been the demands of their own citizens and foreign buyers over the past few decades, that has led to this day.
To achieve meaningful impact from the EUDR and its enforcement in CSDDD, the EU must accept these national certification programs and commitments for cocoa, coffee and palm oil. Protecting forests and the economic interests of both EU and producing countries is best achieved in a government-to-government engagement on this level.
Published February, 2023. CSPO Watch
“Collaboration is necessary to arrive at a workable and practical implementation of the EU regulation for Deforestation-free supply chains. This is the conclusion of speakers and participants at the well-attended meeting on 21/2 that MVO organized together with @Het_Comite and @Nevedi”
-From Business Europe
“Yes 👍 to an EU framework on #DueDiligence. But more realism, proportionality & workability needed for it to work. The 🇪🇺 business community urges @Europarl_EN and @EUCouncil to take 7⃣ recommendations of businesses:
-From FEDIOL, which represents EU vegetable oil & protein meal industry association and the interests of European oilseed crushers, vegetable oil refiners and bottlers.
“The #deforestation law sets an ambitious milestone in the 🇪🇺 action for climate change & biodiversity. Many practical points need to be dealt with now for the implementation to ensure inclusion, availability of supply and limit #supplychain disruptions.”
What is noteworthy of these public statements, is that they came from key industry stakeholders in Europe. The concerns of these major European industry groups on the EU’s Deforestation Regulations and the associated Due Diligence Directive (CSDDD) should be heeded by the European Parliament.
Business Europe further expressed another serious concern over the competitiveness of European businesses, as EU ambitions to clean up commodity supply chains introduces more red tape and regulations.
At best, the EU ambitions to stop imported deforestation could clear the conscience of European consumers. At worst, these ambitions will simply hurt Europe’s competitiveness in business while delivering a minimal impact on reducing global deforestation.
Importance of Smallholder Inclusion
One of the key issues, which has been expressed by multiple European business groups, is the exclusion of smallholders who produce coffee, cocoa, palm oil and other commodities targeted by the Deforestation Regulation.
In the palm oil industry, a CIFOR report on smallholders indicated that:
“They’re also the fastest-growing producer group in Indonesia: the total area cultivated with oil palm by smallholders is expected to grow from approximately 40 percent of the total national acreage in 2016 to over 60 percent by 2030.”
For the consumer favorite, cocoa, The Conversation published a damning report on chocolates.
“Despite recent media attention exposing illegal deforestation from cocoa farming in critically protected ecosystems, these countries recently experienced the world’s highest rates of increase in deforestation in the world.”
As for coffee, Huffpost coverage, Our Coffee Addiction Could Destroy Earth’s Tropical Forests, had warned in 2016 that the daily “cup of joe” was bad for tropical forests.
With millions of small farmers taking down tropical forests for cocoa, coffee and palm oil, the EU Deforestation Regulations could end up as a pompous over-regulation if small farmers are excluded.
The European NGO, Solidaridad, is well aware of this as they continue to push the project to “Reclaim Sustainability!”
Solidaridad shared “5 essential steps that the EU, governments & companies must take for the long-awaited deforestation-free products regulation to actually work in practice. https://loom.ly/FHwuyCE”
Highlights from the essential steps included:
“Immediately develop a comprehensive EU strategic framework for engagement with producer countries. So far there is no indication that the European Commission has started developing such a framework – it should start right away.
Urgently enter into dialogue with producer countries. The EU must adequately inform stakeholders, including farmers, their cooperatives and the private sector, about the regulation. This cannot wait until the regulation is in force.”
Who is going to pay for EUDR?
It is easy enough for policy makers in Brussels to make demands on businesses that have been identified in importing AND exporting commodities associated with deforestation but who will pay?
In a webinar organized by Solidaridad, the key to reducing smallholder deforestation is better pricing for farmer produce.
“As Brussels sets out rules for companies to protect human rights, nature and the climate, known as corporate sustainability due diligence, their message was strikingly unambiguous: If Europe wants sustainable supply chains, companies must take responsibility for the impact of their purchasing practices and pay farmers better prices. As long as smallholder farmers and workers live in poverty, many of Europe's goals are unachievable.”
The historical failure of Europe’s markets to support a living wage for workers or fair price for farmers anywhere, dooms the EUDR to failure unless meaningful compromises are made.
EU businesses concerned about higher costs for raw materials, must offer pricing that is not tied to global commodity markets. Producing countries, on their part, can absorb the upstream costs of meeting EUDR requirements with national certification programs for coffee, cocoa and palm oil.
This is the most realistic arrangement between the EU and producing countries in order to maintain the competitiveness of European products and meet the corporate obligations of the regulations. Sharing the costs of meeting EUDR makes absolute sense as long as exports to the EU offers premium pricing.
National Mandatory Programs Over Third Party Certification
Third party certifications have attempted for decades, to certify tropical commodities only to be accused of harming forests while using child labor for cocoa or child labor and environmental ruin for coffee.
The failure of third party certification schemes for cocoa and coffee will become a non issue as major producing countries like Ecuador, introduce national programs for these consumer staples.
Ecuador launched its national certification scheme for deforestation-free coffee and cocoa production at the UN Climate Change Conference (COP27) in Egypt in November. The certification scheme creates a bridge between Ecuador’s foreign commodity trade and its national climate action.
Ecuador’s national program for cocoa and coffee has precedents in the national certification of palm oil from Malaysia and Indonesia, both of which are pegged to national commitments to fight climate change. Colombia, one of Latin America’s top exporters of palm oil to the EU, has made similar national commitments to deforestation-free palm oil production. Malaysia’s new Deputy Prime Minister, Fadillah Yusof, has repeated the country’s commitment to producing palm oil sustainably.
It is not coincidental that these producers of coffee, cocoa and palm have retained their forest coverage throughout the years of their development. It has been the demands of their own citizens and foreign buyers over the past few decades, that has led to this day.
To achieve meaningful impact from the EUDR and its enforcement in CSDDD, the EU must accept these national certification programs and commitments for cocoa, coffee and palm oil. Protecting forests and the economic interests of both EU and producing countries is best achieved in a government-to-government engagement on this level.
Published February, 2023. CSPO Watch
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