The alarming statistics on deforestation and forest degradation underscore the urgent need for action. Over the past three decades, the world has lost approximately 420 million hectares of forest, equivalent to around 10% of the remaining global forest cover. The consequences are dire, with deforestation serving as a significant driver of climate change and a leading cause of biodiversity loss
EU's Proactive Stance on Environmental Protection
Recognizing the gravity of the situation, the European Union (EU) has been at the forefront of efforts to address deforestation and forest degradation since the 1990s. Through a series of policy and regulatory initiatives, the EU has consistently sought to bolster its commitment to protecting and restoring global forests.
Key Initiatives and Priorities
Among these initiatives, the EU has articulated clear priorities to combat deforestation and promote sustainable land use:
- Stepping up EU Action to Protect and Restore the World’s Forests (2019): This initiative aims to minimize the EU's consumption footprint on land, support deforestation-free supply chains, and strengthen international cooperation to halt deforestation and promote forest restoration.
- The European Union Timber Regulation (EUTR) is a legislative framework established by the EU to address the issue of illegal logging and promote the trade of legally sourced timber and timber products within its borders. The regulation prohibits the placement of illegally harvested timber and timber products on the EU market and mandates that operators exercise due diligence to ensure the legality of their traded timber.
- EU Biodiversity Strategy for 2030 (2020): With a focus on protecting nature and reversing ecosystem degradation, this strategy outlines measures to enhance resilience to climate change and other threats while safeguarding biodiversity.
- New EU Forest Strategy for 2030 (2021): As part of the European Green Deal, this strategy seeks to improve the quantity and quality of EU forests, enhancing their protection, restoration, and resilience.
The EU Deforestation-Free Products Regulation: A Game-Changer
Against this backdrop, the EU introduced the Deforestation-Free Products Regulation, which came into force on June 29, 2023. This regulation represents a significant milestone in the EU's efforts to combat deforestation and forest degradation associated with EU consumption. Key Provisions and Scope of the Regulation
The regulation targets the following relevant commodities according to their respective HS Tariff Codes:
1. Cattle:
- 0102.10 - Purebred breeding animals
- 0102.90 - Other, including domesticated cattle for meat or dairy purposes
2. Cocoa
- 1801.00 - Cocoa beans, whole or broken, raw or roasted
- 1802.00 - Cocoa shells, husks, skins, and other cocoa waste
- 1803.10 - Cocoa paste, not defatted
- 1803.20 - Cocoa paste, wholly or partly defatted
- 1803.90 - Other cocoa preparations, not containing added sugar or other sweetening matter
- 1804.00 - Cocoa butter, fat, and oil
- 1805.00 - Cocoa powder, not containing added sugar or other sweetening matter
- 1806.10 - Chocolate and other food preparations containing cocoa, in blocks, slabs, or bars weighing more than 2kg or in liquid, paste, powder, granular, or other bulk form
- 1806.20 - Chocolate and other food preparations containing cocoa, filled
- 1806.31 - Cocoa powder, containing added sugar or other sweetening matter
- 1806.32 - Other preparations in blocks, slabs, or bars weighing more than 2kg or in liquid, paste, powder, granular, or other bulk form, containing added sugar or other sweetening matter
- 1806.90 - Other chocolate and other food preparations containing cocoa
3. Coffee
- 0901.11 - Coffee, not roasted, not decaffeinated
- 0901.12 - Coffee, not roasted, decaffeinated
- 0901.21 - Coffee, roasted, not decaffeinated
- 0901.22 - Coffee, roasted, decaffeinated
- 0901.90 - Coffee husks and skins
- 0902.10 - Caffeine, not isolated
- 2101.11 - Coffee extracts, essences, and concentrates
- 2101.12 - Instant coffee
- 2101.19 - Other coffee preparations and extracts
4. Palm Oil
- 1511.10 - Crude palm oil
- 1511.90 - Other palm oil and its fractions, whether or not refined, but not chemically modified
- 1511.10.11 - Crude palm oil, in bulk
- 1511.10.19 - Crude palm oil, other
- 1511.90.11 - Palm olein
- 1511.90.19 - Other palm oil fractions
- 1511.90.90 - Other
5. Rubber
- 4001.10 - Natural rubber, balata, guttapercha, guayule, chicle, and similar natural gums, in primary forms or in plates, sheets, or strip
- 4001.21 - Natural rubber latex, whether or not pre-vulcanized
- 4001.22 - Natural rubber, balata, guttapercha, guayule, chicle, and similar natural gums, in other forms
- 4002.11 - Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets, or strips; mixtures of natural rubber, balata, guttapercha, guayule, chicle, or similar natural gums with synthetic rubber or factice, in primary forms or in plates, sheets, or strip
- 4002.19 - Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets, or strip; mixtures of natural rubber, balata, gutta-percha, guayule, chicle, or similar natural gums with synthetic rubber or factice, in other forms
- 4002.20 - Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets, or strip, mixtures of natural rubber, balata, gutta-percha, guayule, chicle, or similar natural gums with synthetic rubber or factice, other than latex, other than specified in Note 1(B) or 1(C) to this Chapter
- 4002.41 - Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets, or strip, mixtures of natural rubber, balata, gutta-percha, guayule, chicle, or similar natural gums with synthetic rubber or factice, in primary forms or in plates, sheets, or strip, other than latex, other than specified in Note 1(B) or 1(C) to this Chapter
- 4002.49 - Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets, or strips, mixtures of natural rubber, balata, gutta-percha, guayule, chicle, or similar natural gums with synthetic rubber or factice, in primary forms or in plates, sheets, or strip, other than latex, other than specified in Note 1(B) or 1(C) to this Chapter
- 4002.50 - Resins, in primary forms or in plates, sheets, or strip
- 4002.90 - Plates, sheets, strips, rods, and profile shapes, of vulcanized rubber other than hard rubber
6. Soya
- 1201.00 - Soybeans, whether or not broken
- 1507.10 - Crude soybean oil
- 1507.90 - Other soybean oil and its fractions, whether or not refined, but not chemically modified
- 1508.10 - Crude soybean oil, whether or not degummed
- 1508.90 - Other soybean oil and its fractions, whether or not refined, but not chemically modified
- 1509.10 - Soybean oil and its fractions, whether or not refined, but not chemically modified
- 1509.90 - Other soybean oil and its fractions, whether or not refined, but not chemically modified
- 2304.00 - Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soybean oil
- 2306.30 - Soybean flour and meals
7. Wood
- 4401 - Fuel wood, in logs, in billets, in twigs, wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms.
- 4403 - Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared.
- 4404 - Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles or the like; chipwood and the like.
- 4406 - Railway or tramway sleepers (cross-ties) of wood.
- 4407 - Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm.
- 4408 - Veneer sheets and sheets for plywood, of wood, whether or not sliced, peeled or assembled with parallel adjacent sheets of wood; densified wood.
- 4409 - Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed.
- 4410 - Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances.
- 4411 - Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances.
- 4412 - Plywood, veneered panels and similar laminated wood.
- 4413 - Densified wood, in blocks, plates, strips, or profile shapes.
They impose strict conditions on the placement and export of these products, requiring them to be deforestation-free, produced under relevant legislation, and covered by a due diligence statement.
Operators are tasked with conducting due diligence to assess the compliance of relevant products with the regulation. This involves collecting comprehensive information, conducting risk assessments, and implementing mitigation measures. Failure to meet these requirements can result in penalties, including fines, confiscation of products, and temporary exclusion from public procurement processes.
Preparing for Compliance: A Checklist
To ensure compliance with the EU Deforestation-Free Products Regulation, businesses should: 1. Assess the scope of the regulation and identify relevant products and commodities. 2. Conduct thorough reviews of existing value chains to identify potential compliance risks. 3. Develop robust due diligence strategies, including risk assessment and mitigation measures. 4. Consider integrating due diligence requirements into supplier codes of conduct. 5. Maintain up-to-date documentation and evidence of compliance.
In an era defined by environmental challenges, compliance with regulations such as the EU Deforestation-Free Products Regulation is not only a legal obligation but also a moral imperative. By taking proactive steps to minimize their impact on deforestation and forest degradation, businesses can play a crucial role in safeguarding the planet for future generations.
There sustainable certifications are in place to protect forests, ensuring responsible management practices and conservation efforts. Some of the key certifications include:
Forest Stewardship Council (FSC): FSC certification ensures that forests are managed sustainably, considering environmental, social, and economic aspects. Products carrying the FSC label come from responsibly managed forests that meet stringent environmental and social standards.
Programme for the Endorsement of Forest Certification (PEFC): PEFC is an international non-profit organization that promotes sustainable forest management through certification. PEFC-certified forests adhere to rigorous standards for environmental, social, and economic sustainability.
Revolutionizing Facility Management with CommonShare’s Architecture
CommonShare’s innovative architecture not only provides a cutting-edge solution for managing facility data but also allows seamless sync and upload of products, facilitating swift integration into the system. Through a shared ledger with permissioned access tailored to facility owners, businesses can efficiently manage their facilities while ensuring security and transparency. This advanced system enables the precise geographical pinpointing of facilities, whether as single points or mapped polygons, and accommodates various ownership structures, including individual, joint, or collective ownership.
Furthermore, facilities can be categorized based on specific standards, certificates, or attributes, with verification carried out by trusted certification bodies. Once verified, these attributes are immutably recorded in a secure database, preventing unilateral alterations and establishing integrity and trust. Leveraging this framework, CommonShare introduces Facility-NFTs, revolutionizing the management and authentication of facility data. These NFTs drive traceability by providing irrefutable proof of facility attributes, enhancing transparency and accountability throughout the supply chain.