The European Parliament has approved a new legislative proposal that bans products linked to deforestation.

The adopted document covers seven household products, including timber, livestock, palm oil, soya, cocoa, coffee and rubber, as well as their derivatives such as chocolate, furniture and certain cosmetic products.

Over the past 30 years, an area larger than the European Union has been deforested to satisfy the consumption of these products, “virtually without consumers knowing it,” Christoph Hansen, a conservative Member of the European Parliament from the European People's Party and rapporteur for the document, said in Strasbourg on Wednesday (19 April). “I feel satisfied that consumers no longer have to participate in deforestation.”

Although only 10% of lost forest area is directly linked to European consumers, Mr Hansen believes that others will follow the EU's example.

“If our trading partners see that deforestation-free supply chains are possible, they will follow the same path,” Mr Hansen told EU Observer. The EU initiative has indeed prompted the US to consider similar legislation, known as the FOREST Act.

While the impact of the ban is still difficult to assess, the European Commission estimates that this law would protect an area equivalent to 100,000 football pitches.

Forest – for the trees

One of the most challenging issues will be the implementation of this legislation. For the law to be effective, deforestation must be traceable to its source, but goods are often sourced from international supply chains, which complicates the matter.

According to European Commission data, company systems can involve up to 190,000 suppliers from various countries around the world. Supply chains can “vary significantly” from one product to another, Mr Hansen noted, with many producers often storing or shipping their products in mixed containers.

Ensuring that soya or palm oil is produced without being linked to deforestation “inevitably” requires separating supply chains for the European Union, Mr Hansen wrote in a statement accompanying the legislation.

In practice, this means that products must be traced right down to the individual plot of land or farmer who cultivates “only a few hectares” and is quite far from oversight or decision-making authorities. It remains to be clarified how enforcement of the rules will be ensured. The Commission must develop the necessary tools and criteria for the comprehensive system to work; Mr Hansen acknowledges that this could be “complex and expensive.” However, the evidence that it can be done, in the view of MEP Christoph Hansen, is the system already established for genetically modified products, which are already separated from goods intended for the EU market, where genetically modified organisms are subject to strict regulation.

Exporters who violate EU legislation face fines of up to four per cent of their annual turnover in the EU. “Of course, you cannot check every cargo, but producers must know the consequences if they act illegally,” EPP MEP Mr Hansen told EU Observer.

Unfair?

The legislation still needs to be formally approved by member states, and Finnish lawmakers have described some of its provisions as unfair.

“In Finland, forests cover 75% of the country’s territory. If farmers cannot build a shed because it is deemed to cause deforestation, how can they invest?” asked Finnish centrist MEP Elsi Katainen (Elsi Kaitanen), who represents the Renew Group, before Monday’s upcoming vote, adding that she “cannot support this proposal.”

However, the widely supported proposal is not expected to be rejected by the European Council, and the law is expected to enter into force by the end of the year.

There will be an opportunity to review and update this proposal in two years' time. At that point, the European Commission will have to submit an assessment on extending the requirements to financial institutions and investors.

“This law is a much-needed glimmer of hope for the world’s forests,” said Julia Bondi, a campaigner at the international NGO Global Witness. “However, it needs the final piece of the puzzle – the European Commission must urgently adopt a new law to stop banks from financing deforestation.”