Urgency to Deforestation Free

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Urgency to Deforestation Free. Photo by: Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – In the past decade, many countries have worked to minimize deforestation by implementing measures such as publishing moratoriums and increasing supply chain transparency to support forest conservation.

However, the European Union (EU) reported that forest degradation and deforestation continue at concerning levels, contributing to more than 10% of global greenhouse gas emissions.

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In response, the EU Commission introduced the European Union Deforestation Regulation (EUDR) in late 2022. This regulation will be fully implemented by early 2025. However, it will not be immediately enforced for business owners, particularly micro, small, and medium enterprises (MSMEs) in the EU. For these businesses, the EUDR will take effect in June 2024, six months later than for other countries.

The regulation covers seven high-risk commodities: wood, soybeans, palm oil, coffee, chocolate, beef, and rubber, as well as their derivative products such as chocolate, leather, and paper.

Companies in these sectors are prohibited from placing their products on the EU market unless they can prove that their products are not linked to deforestation.

EUDR does not directly deliver impact for the smallholders because in general they do not directly trade their products to EU without having partners with big companies. But the impacts (for smallholders) would be existing.

When EU implements/restricts the companies/industries, the smallholders would get the impacts because their products (fresh fruit bunch/FFB) would not be accepted in EU.

In this country, EUDR terms and condition are used by palm oil companies to make smallholders’ FFB namely the independent ones, cheaper because they have nothing to do with the mill directly.

This happens because their products are not traceable. That is why the clear regulation would be very significant to regulate palm oil plantation governance and reinforce palm oil commerce. The regulation would be about to confirm smallholders’ traceability and inclusivity in EU supply chain. (P2)

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