EU approves new law against global deforestation

On Wednesday (April 19, 2023) the European Parliament approved a new law to fight global deforestation. The legislation obliges companies to ensure that products sold in the EU have not contributed to deforestation and forest degradation. While no country or commodity will be banned, companies will only be allowed to sell products in the EU if the supplier has issued a due diligence statement confirming that the product does not come from deforested land or has led to forest degradation, including irreplaceable primary forests, after December 31, 2020.

As requested by Parliament, companies will also have to verify that these products comply with relevant legislation of the country of production, including on human rights, and that the rights of affected indigenous people have been respected.

The products covered by the new legislation are: cattle, cocoa, coffee, palm oil, soy, wood, rubber, charcoal, printed paper products, and various palm oil derivatives. This legislation also applies to products that contain, have been fed with, or have been made using these commodities (such as leather, chocolate, and furniture).

The legislation still needs to be formally approved by the Council of the European Union, but Brazilian producers and exporters need to be aware of the practical consequences that such measures will have on the international market.