INFORM October 2024

28 • inform October 2024, Vol. 35 (9)

EU deforestation regulation Regulatory Review is a regular column featuring updates on regulatory matters concerning oils- and fats-related industries.

Rebecca Guenard

A few months remain before traders and oper ators selling in the European Union will be required by law to trace their products’ origins. The intention of the law is to limit the expan sion of agricultural land linked to the produc tion of commodities like cattle, cocoa, soy, palm oil, wood, and some of their derived products, such as leather, chocolate, or furniture. The EU established the regulation on deforestation-free products on June 29, 2023. The indication being that as a major economy and consumer of these commodities, the EU is partly responsible for the problem of deforestation and forest degradation. The member states felt the obligation to lead the way towards a solution. Under the European Union Deforestation Regulation (EUDR), any operator or trader who places these commodities on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation. The regula tion on deforestation-free products repeals the EU Timber Regulation (https://tinyurl.com/4zpt989n) . As of summer 2023, operators and traders had 18 months to implement the new rules. Smaller enterprises have a longer adaptation period, as well as other specific provisions. According to the EUDR website, the new rules aim to • avoid that the listed products Europeans buy, use and consume contribute to deforestation and forest degra dation in the EU and globally • reduce carbon emissions caused by EU consumption and production of the relevant commodities by at least 32 million metric tons a year • address all deforestation driven by agricultural expan sion to produce the commodities in the scope of the regulation, as well as forest degradation POSITIVE RESPONSE The EU reports that it is working with partner countries and companies to ensure a successful transition to deforesta

tion-free supply chains. Some experts suggest that the regu lation encourages responsible business conduct by creating a market incentive for thousands of businesses, within and out side the EU, to improve their practices on human rights and the environment to maintain commercial relationships with the member states. Archer Daniels Midland Company (ADM), recently announced it is offering fully traceable and segregated soy bean oil and meal to European customers in compliance with the regulation. Soybeans are one of the commodities that are prominently part of the EUDR’s focus. Soy is widely linked to deforestation, mostly due to the large amounts that are grown