European Commission proposes deforestation due diligence rules
On 17 November 2021, the European Commission (“Commission”) published a Proposal for a Regulation on placing on the EU market and exporting from the European Union wood, cattle (beef), cocoa, coffee, palm oil and soy and derived products associated with deforestation and forest degradation (“Proposed Regulation” or “Proposal”). According to the Proposal, those products can no longer be placed or made available on the EU market, nor can they be exported from the EU market, unless they are deforestation-free. The Proposal is presented as part of the European Union’s initiatives to address climate change, such as the European Green Deal. The publication of the Commission’s legislative proposal comes in the wake of COP26, where global leaders, including the European Union, made pledges to stop deforestation.
This Client Alert sets out the key elements of the Proposal that are of interest to producers, traders, importers and exporters of wood, cattle (beef), cocoa, coffee, palm oil and soy as well as some derived products.