The Council of Europe adopted, on Tuesday (28), a position in favour of the proposal to establish mandatory surveillance rules for all companies that market palm oil, beef, wood, coffee, cocoa and soy on the European market. The rules also apply to various derived products, such as leather, chocolate and furniture.

The European Union (EU) institution explained that the decision represents a strong level of environmental ambition, in an approach that also avoids duplication of obligations and reduces administrative burdens for member states' companies and bodies. With the Decision, the Council approved the creation of a system that gives countries a level of risk related to deforestation, classified as low, normal or high.

The risk category would determine the level of specific obligations for authorities to carry out inspections. This means improved monitoring for countries considered high risk, and a simplified form of control for low-risk countries. The Council also clarified control obligations and set quantified objectives of minimum levels of control for standard and high-risk countries. The aim is to define effective and targeted measures,  the institution informs.

The EU accounts for 16% of deforestation linked to international trade through imports of commodities such as beef, soy, palm oil, rubber, wood, cocoa and coffee and its derivatives, wwf estimates. In order to reduce this environmental footprint, the European Commission presented a legislative proposal on a new law against deforestation in November 2021. The position of the EU Member States, agreed at the Council, is the first critical step in the decision-making process with the European Parliament.

The proposed legislation will still be discussed in Parliament, with votes scheduled in the Environment Committee for mid-July and in plenary in September. On Tuesday, in its announcement, the Council reinforced the human rights aspects of the text, specifically adding several references to the United Nations Declaration on the Rights of Indigenous Peoples.

Impacts for Brazil

Stricter laws can impact the purchase of commodities and agricultural products from countries such as Brazil, a major exporter of both. Two of the main products sold by Brazil to Europeans, soybeans and beef, would be directly affected. And the same requirement would also apply to European companies that will invest money in the country, such as banks and investment funds.

When the plan to restrict imports of products from deforestation areas was announced by the European Union, Brazil, Argentina and Paraguay questioned, at the World Trade Organization (WTO), the European Commission's intention to ban the import of agricultural products based on land use. The countries said the measures are being adopted "to discriminate against developing countries that depend on the agricultural sector to foster their development."

According to the three Mercosur countries, the measure would not distinguish between legally and illegally deforested areas, which would disregard Brazil's legislation, since the Brazilian Forest Code allows productive rural properties in the Amazon to clear up to 20% of its total area.

Brazil is the largest tropical forest country in the world, home to 60% of the Amazon Rainforest. If the country does not combat deforestation, the Glasgow declaration and the very objective of the Paris Agreement would be at risk, the Climate Observatory estimates.

The main driver of global deforestation is the expansion of agricultural land, which is linked to the production of commodities included in the scope of the regulation. As a major consumer of these products, the EU believes that it can reduce its impact on forest degradation by adopting new rules to regulate entry into the European market and export of these products to ensure that supply chains are "free of deforestation".

Source: Um só Planeta