a. The EU deforestation Regulation is based on internationally backed definitions – in particular on the work of the Food and Agricultural Organisation (FAO) – e.g. of "forest" and "deforestation". These definitions are the basis for the obligations for companies and stakeholders in third countries that have commercial relations with the EU, as well as for EU competent authorities.
'Deforestation-free' under the scope of the Regulation means that no commodities and products in the scope of the regulation would be allowed to enter or exit the EU market if they were produced on land subject to deforestation or forest degradation after the cut-off date of the Regulation (31 December 2020). The proposed date minimises disruption of supply chains and potential negative impacts in partner countries. It corresponds to international commitments to halt deforestation as for example included in the Sustainable Development Goals (Goal 15.2.).
For more information, the EU invites Indonesia to consult the Europa webpages on the Deforestation Regulation.
b. The measure proposed is supported by solid scientific evidence spelled out in the Commission Impact assessment "Minimising the risk of deforestation and forest degradation associated with products placed on the EU market" accompanying the EU proposal, available at SWD_2021_326_1_EN_impact_assessment_part2_v2.pdf (europa.eu).
The Regulation is intended to help fight climate change and biodiversity loss linked to global deforestation by addressing the role of EU consumption. It is designed to apply in an even-handed and non-discriminatory manner, i.e. equally to the most relevant commodities and to products produced inside as well as outside the EU.
There is no ban against products coming from any country under this Regulation. The rules are designed to make sure that products sold in the EU from any country, including EU member states, comply with the same requirements in terms of preventing deforestation.
The objectives pursued by the Regulation are the internationally recognized, public policy concerns: the protection of the environment, the fight against climate change and biodiversity loss. The measure adopted is supported by solid evidence as spelled out in the Commission Impact Assessment
For a more detailed analysis of the EU green deal and WTO compatibility, the EU also invites India to consult:
c and e. This Regulation is an environmental measure, which complements global / multilateral action, developed in compliance with EU's international commitments and WTO requirements. It ensures that products sold on the EU market, whether produced in the EU or imported are deforestation free.
It is not a trade ban: no country nor commodity will be banned. Products, even from countries with a high risk level can continue to be placed on the EU market as long as the company will go through the required due diligence process proving they are deforestation-free.
The operators that want to sell products in the EU will have to comply with the due diligence requirements to guarantee that their supply chains are free from deforestation. On the other hand, those operators that meet the requirements will improve their access to the EU market, create confidence in the consumers and guarantee the sustainability of their supply chains in the long term.
Widespread and free technology for geolocation - essentially mobile phones – will ensure that no technical obstacle gets in the way of smallholders when it comes to selling their products to the EU market.
The Regulation is expected to boost market opportunities for sustainable producers regardless of their size. The cut-off date aims to minimise the number of smallholders that are caught cultivating land whose produce cannot be sold on the EU market or exported from it.
Several smallholders' organisations, notably from Indonesia, have expressed support to the regulation and, in particular, geolocation and traceability, as they see increased transparency in supply chains as a clear opportunity for them to have a fair access to the market while using the widely available technology.
The findings of the Impact Assessment of this Regulation indicate that SMEs are perfectly capable of exercising due diligence to ensure the sustainability of their supply chains - which are often simpler than those of larger corporations or built on longstanding business relationships.
In addition, SMEs will benefit from a range of special provisions in the regulation (e.g. SMEs will benefit from a 24 months period before the rules start applying to them) and will be assisted in complying with their due diligence obligations.
A very important point is the strong EU commitment to step up its engagement with partner countries, consumer and producer countries alike, to jointly address deforestation and forest degradation. Partnerships and cooperation mechanisms could support countries to address deforestation and forest degradation where a specific need has been detected, and where there is a demand to cooperate - for instance, to facilitate compliance with the Regulation for companies/ smallholders, or to help partner countries meet their international commitments on halting deforestation e.g. under the Glasgow Declaration or the SGDs. Civil society, indigenous people, the private sector and local communities should be fully involved in this partnership and cooperation exercise.
Engagement will also include structured dialogues and other actions to support partner countries in making the transition towards more sustainable production and facilitating compliance of relevant commodities and products with the requirements of the Regulation. The EU has notably pledged EUR 1 billion to facilitate protection, restoration and sustainable management of forests in the partner countries, for the benefit of people, climate and environment.
d. The country benchmarking system operated by the Commission will assign a risk level to countries or parts thereof, considering a range of objective criteria, in particular deforestation and forest degradation rates and the rate of expansion of agriculture land for relevant commodities.
It will be developed by the Commission based on scientific data within 18 months after the entry into force of the Regulation (in line with entry into application).
The main criteria for the assessment that the Commission must endeavour are: (a) rate of deforestation and forest degradation, (b) rate of expansion of agriculture land for relevant commodities, (c) production trends of relevant commodities and of relevant products.
As foreseen in the Regulation, the assessment may also take into account other criteria such as information supplied by governments and third parties (NGOs, industry); agreements and other instruments between the country concerned and the Union and/or its Member States that address deforestation and forest degradation; the national laws to fight deforestation and forest degradation and their enforcement; the availability of transparent data in the country; respect of indigenous peoples; international sanctions imposed; etc.
This assessment will result in three categories of country risk: low, standard and high risk. All countries will be standard risk upon entry into force by default.