Presented by Henriette Faergemann (First Counsellor for Environment, Climate Action and Digital Cooperation, European Union Delegation to Indonesia) at "A nature-positive trade for sustainable agriculture supply chains and inclusive development", Jakarta, Indonesia, on 26 - 27 Sep 2023

1. 1
European Commission
DG Environment
Regulation on deforestation- and forest
degradation free supply chains

2. Context
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• 420 million hectares of forest worldwide – an area larger than the EU – have been lost
between 1990 and 2020 (FAO).
• A significant share of that forest loss is legal (Forest Trends).
• Deforestation and forest degradation are important drivers of climate change (IPCC: 11%
of GHG emissions) and biodiversity loss.
• 90% of deforestation is provoked by the expansion of agricultural land (FAO), which is
linked in particular to a series of commodities.
• The EU is a major consumer of commodities associated with deforestation and forest
degradation: Imports of the commodities and products covered - EUR 85 billion / year.

3. Objectives of the Regulation
Specific
Minimise the EU’s contribution to deforestation and forest degradation worldwide
(thus reducing global deforestation and forest degradation as well as greenhouse gas
emissions and biodiversity loss)
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GENERAL
Minimise risk that products from supply
chains responsible for deforestation /
forest degradation are placed on the EU
market or exported from it
Increase EU demand for and trade in
legal and ‘deforestation free’
commodities and products

4. Scope
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• 7 commodities:
• Palm oil
• Soy
• Wood
• Cattle
• Cocoa
• Coffee
• rubber
• Some derived products (e.g. chocolate, furniture, tyres, printed products)
• Scope may be expanded over time

5. Principles
• No ban against any country or commodity: All countries will be able
to continue to sell their commodities on the EU market if the
operators can demonstrate that the commodities are deforestation-
free and legal
• No discrimination: Applies equally to products produced in the EU
and imported from outside
• Cut-off date of 31 December 2020: products produced on land
deforested after this date are not allowed on the EU market
• Cut-off date is in line with SDG commitments: Aims to minimise disruption
for smallholders and facilitate satellite monitoring
• No punishment for historical deforestation, but forward looking to prevent
further deforestation and forest degradation
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6. Mandatory Due Diligence
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Carried out by operators who place the products on the EU market/export from the EU
• Only products that are both deforestation-free and legal would be allowed on or exported
from the EU market.
• The EU operator need to issue a due diligence statement confirming
1. Legality: Products need to be legal according to the laws of country of production, including
applicable human and labour rights and free, prior and informed consent.
2. Deforestation-free: products not produced on land deforested after the cut-off date.
3. Strict traceability linking the commodity to the plot of land where it was produced (Mandatory
use of polygons above four hectares)
• Information supplied by certification or other third-party verification systems (ISPO, MSPO,
RSPO and others) can support, but not replace, due diligence obligations of operators

7. Country Benchmarking
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• Benchmarking system that will assign risk to countries or regions according to risk of
deforestation – standard, low and high
• Criteria: primarily rate of deforestation and expansion of agricultural land for commodities
– Technical support contract being tendered
• All countries start at standard risk level. Changes in consultation with countries
• Specific obligations for operators: Simplified due diligence for low-risk (still required to
collect information, but not assess and mitigate risks).
• Minimum level of inspections for Member States authorities to perform (9%, 3% and 1%,
depending on the level of risk).

8. Cooperation with partner countries
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• The Commission will step up cooperation with the Government and private sector
to ensure that partners are able to reap the benefits of the regulation.
• The EU will engage in open dialogue with all countries, Task Force with Indonesia
and Malaysia
• Specific dialogue with those that could be classified as ‘high risk’, with the aim of
collaboratively reducing levels of risk.
• The EU will issue clear and easy to understand guidelines for EU operators and
traders with the requirements of this Regulation (under development).
• Support tools will be put in place to help partner countries improve forest
governance and sustainable agriculture, create socio-economic opportunities and
tackle the root causes of deforestation.
• How can we work together to ensure that all sectors can benefit from the
regulation?

9. Implementation tasks
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• Information System: IT developments ongoing
• Benchmarking: Implementing act, running by the entry into application (December 2024).
• Guidelines: For operators and traders, for competent authorities.
• Review: Impact assessment and legislative proposal (when needed).
▪ First review: Other wooded land (one year after entry into force, before entry into application).
▪ Second review: Commodities, products, other ecosystems, and financial institutions (two years
after entry into force) (June 2025).
▪ Third review: Smallholders, trade facilitation tools, degradation, circumvention, etc. (five years
after entry into force) (2028)

10. Timeline
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• November 2021: European Commission issued the legislative proposal
• December 2022: Preliminary agreement between European Parliament and European Council;
• 29 June 2023: Entry into force
• 30 December 2024 Obligations will begin for operators

11. © European Union 2021
Unless otherwise noted the reuse of this presentation is authorised under the CC BY 4.0 license. For any use or reproduction of elements that are not owned by
the EU, permission may need to be sought directly from the respective right holders.
Thank you!
Learn more here:
https://ec.europa.eu/environment/publications/proposal-regulation-deforestation-free-products_en
https://data.consilium.europa.eu/doc/document/ST-16298-2022-INIT/en/pdf
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