Ambition and pragmatism drive MEP Christophe Hansen (EPP, Luxembourg), rapporteur for the November 2021 proposal for a regulation, which aims to minimise the risk of global deforestation and forest degradation associated with products placed on the EU market, by imposing a due diligence obligation on operators and traders throughout the supply chain (see EUROPE 12834/1).
His draft report presented to the Committee on the Environment on 20 April aims to make the future regulation operational by simplifying it, while extending its scope to other commodities and certain forest ecosystems.
It was welcomed, although the S&D, Greens/EFA, Renew Europe and The Left groups recalled the higher level of ambition of the own-initiative legislative resolution adopted in October 2020 by the Parliament (see EUROPE 12586/21).
“Let’s make sure that the system is not too complicated from the start! We will have the opportunity to improve it”, Mr Hansen told his colleagues.
Extension of the scope of application. At this stage, he proposes to include at least rubber, “a raw material that is responsible for some of the world’s deforestation and for which we have data”, Mr Hansen said. He also proposes the inclusion of palm oil products, such as cosmetics, because they account for a significant proportion of palm oil imported into the EU.
In a second phase, extension to other ecosystems and commodities, such as processed beef, sugar cane and charcoal, could be considered when the regulation is revised within 2 years of its entry into force.
Indigenous people. Considering that compliance with national legislation - one of the three conditions for considering a product to be deforestation-free - is not sufficient to ensure compliance with the regulation, it adds compliance with international standards relating to customary land rights and indigenous people in order to be able to place products on the EU market.
“However, the regulation should not be extended to too many issues, such as human rights, for example, which fall outside the scope of this regulation, but which we know will be covered by the framework regulation on corporate sustainability due diligence”, the rapporteur claimed.
Support for smallholders. To help smallholders - who make up 80% of the cocoa sector, for example - meet the new requirements, including geolocation, the draft report offers financial and technical support and the possibility of geolocation coordinates for a production area rather than for each plot of land.
Traceability system. To avoid implementation difficulties, Mr Hansen said that the European Commission should analyse the different supply chains and establish rules for due diligence requirements and traceability tools as well as liability rules for each of them.
Simplified due diligence. The rapporteur advocates that the first due diligence analysis should be the sole responsibility of the operator or trader who places a product on the EU market for the first time and that the information should then be transmitted in the form of a harmonised, digital declaration to the other operators and traders in the supply chain.
Country risk benchmarking. To avoid the risk of WTO complaints from countries classified as high risk of deforestation or forest degradation, the rapporteur proposes to limit the comparative risk assessment to the identification of low-risk countries in order to allow producers to apply a simplified due diligence for these countries.
Furthermore, Mr Hansen is opposed to the possibility of destruction of non-compliant products by customs - a possibility proposed by the Commission, but deemed unjustified in the absence of danger to health and with regard to the circular economy.
Delara Burkhardt (S&D, Germany), author of the 2020 own-initiative report, reiterated the Parliament’s demands, including an extension of the scope to vital ecosystems - savannahs, grasslands, peatlands and mangroves. Marie Toussaint (Greens/EFA, France) noted that despite the progress it represents, the draft report “would still leave out 20% of the Cerrado land” in Brazil “where most of the soy and beef imported by the EU comes from”.
To see the text: https://aeur.eu/f/1by (Original version in French by Aminata Niang)