The European Parliament has reached a preliminary agreement with EU governments on a new law that will oblige companies to sell products free of deforestation.
The new law mandates companies to ensure that certain products sold in the EU do not come from deforested land anywhere in the world after December 31, 2020. Businesses must also make a “due diligence” declaration that the products they sell on the EU market did not contribute to deforestation or forest degradation.
The agreed-upon text states that while no country or commodity will be specifically prohibited, businesses will not be permitted to sell their products in the EU without this declaration. In addition, companies will also need to confirm that the rights of any affected indigenous people have been respected and comply with relevant laws of the country of production, including those of human rights. Non-compliance leads face fines of up to 4 % of their annual EU turnover.
The rule includes charcoal, printed paper products, palm oil, cattle, soy, coffee, cocoa, timber and rubber imported into the EU.
Additionally, the Parliament established a broader definition of forest degradation encompassing the conversion of primary forests into planted forests and the conversion of naturally regenerating or primary forests into plantations or other wooded lands.
Parliament and Council will have to approve the agreement formally. The new law will come into force 20 days after its publication in the EU Official Journal.
