The past decades have seen a global increase in the production and trade in agricultural and forest-based commodities linked to deforestation and other socio-environmental risks. Different forms of governance have emerged to attempt regulation of these commodity supply chains to halt deforestation and ensure sustainable land-use change. In June 2023, the EU Deforestation Regulation (EUDR) was adopted, requiring EU companies to ensure that certain products imported to the EU are not associated with deforestation. The EUDR aims to minimize the EU’s contribution to deforestation and forest degradation worldwide. As such, it is intended to help reduce greenhouse gas emissions and biodiversity loss as stipulated in the European Green Deal. As the EUDR enters into force, many questions arise as to how the value chains of major globally traded commodities can become compliant.
With this in mind, the CLEVER and RAINFOREST partner Bonn.Realis organized a workshop called “Toward compliance with the EU Deforestation Regulation: Criteria, Tools, and Open Questions” on November 13, 2023, joining participants both online and in person, at the Center for Development Research, University of Bonn. More than 60 stakeholders joined, mainly from Germany, Brazil, but also other international actors, representing all sectors – public authorities, private companies, certifiers, NGOs, company associations, and research organizations. The workshop aimed at providing a space for discussion and exchange, identifying knowledge and capacity gaps to comply with the EUDR as well as opportunities for future collaboration toward improving supply chain sustainability. The workshop focused on Brazil as a key supplier to the EU and three specific commodities covered by the EUDR (i.e. beef, soy, and wood).
Under Chatham House Rules, participants discussed two fundamental questions:
- What challenges must be overcome in the three value chains in order to achieve compliance with the EUDR and related due diligence policies?
- Which tools and support mechanisms are in place or being developed to overcome these challenges, especially as regards IT solutions, certification schemes, and the mutual recognition of administrative and control systems?
The workshop provided a solid overview of what operators in both regions as well as competent enforcement authorities in the EU can build on in terms of traceability systems and tools for compliance. We also gathered valuable information on areas where stakeholders require further clarification and guidance to align effectively with the new regulatory conditions. Questions around traceability, risk assessment and mitigating measures, supply chain segregation, and transaction costs dominated the debates in separate breakout groups for the three commodities. Considerable uncertainty exists as to the quality standards that competent national authorities and third parties may apply to evaluate future due diligence efforts of operators. There was also an emphasis on a pre-competitive collaboration among operators and service providers in order to generate accessible traceability solutions for all actors of the supply chain.
In sum, we have learned a lot about the challenges that key stakeholders involved in the implementation of the EUDR still need to overcome until its rules will apply from 30th of December 2024. A summary paper synthesizing the workshop’s main results will be prepared and some authorities have already signaled interest in feeding these results into ongoing consultations. Beyond contributing to the implementation process, these results will also feed into CLEVER’s research on policy analysis (WP4, 5) and stakeholder engagement (WP8).
Written by Rafaella Ferraz Ziegert (UFR) and Jan Börner (UBO).
Photo by Rafaella Ferraz Ziegert (UFR).