Legal & Regulatory News

European Parliament votes in favour of new rules for companies on limiting global deforestation

On the 13 September 2022, the European Parliament voted in favour of a new law that would make it obligatory for companies to verify that certain goods sold in the EU have not been produced on deforested or degraded land anywhere in the world. The new law has been proposed following a study that found that between 1990 and 2020, the world has lost 420 million hectares of forest - an area that is larger than the entire European Union.

The scope of the proposal not only includes wood products, but also covers other goods linked to deforestation (such as soy, beef, palm oil, cocoa, coffee products) as well as products that contain or have been fed using these commodities (such as leather, chocolate and furniture). While no country or commodity will be banned, companies placing products on the EU market would be obliged to exercise due diligence to evaluate risks in their supply chain.

MEPs also voted in favour of companies being required to verify that goods have been produced in accordance with international human rights provisions, and respect the rights of those indigenous people affected by deforestation.

Click here to view the press release.

Click here to view the proposal.