Why is the ECF asking to delay the implementation of the EU’s Deforestation Law?

The EU’s Deforestation Law is a set of laws issued by the European Union to limit deforestation by controlling imports throughout the EU. Products such as coffee will be banned from trading or heavy fines if they are linked to deforestation. For goods to be imported without heavy fines, the law requires companies to clearly state the origin of the goods to prove that they were not grown on newly deforested land.

As planned, these provisions will be implemented this year. However, the European Coffee Federation (ECF) has sent a letter asking the EU to postpone the implementation of this law. In the content, the ECF expressed concerns about the EU’s new Deforestation Law and hoped that the organization would make satisfactory adjustments.

The EU’s Deforestation Prohibition Law is a set of laws issued by the European Union for certain products imported into the EU related to deforestation

The reason the ECF calls on the EU to delay the implementation of the Deforestation Law is the negative impacts of its provisions. The ECF announcement clearly stated that the implementation and time limit for implementing the deforestation law is a challenge not only for the entire coffee industry and related parties but also for competent EU agencies.

Specifically, if this law takes effect on December 30 as expected, millions of small-scale coffee farmers will be under great pressure. Based on the survey results of the International Coffee Organization, ECF noted that 80% of farmers still need to prepare land maps as required by law. At the same time, coffee producers do not know how to participate and do not have enough resources to participate in this land control program properly. Meanwhile, tools to support compliance with the law are still in development. There needs to be more than current equipment and facilities to apply comprehensive support and control on a large scale. This can cause serious losses for exporters.

ECF calls on the EU to delay the implementation of the Deforestation Ban Law due to the negative impacts that could affect the entire industry’s supply chain

In addition, provisions on bans and fines can lead to negative impacts on the supply chain and industry actors. The new law requires companies to trace their origins to prove they were not grown on newly deforested land, especially coffee. Once the regulations take effect, warehouses in the EU are forced to destroy green coffee inventories that do not meet standards. This would affect EU traders and present challenges for small-scale producers and cooperatives in developing countries that lack detailed guidance and regulations for compliance. The coffee supply chain in the EU may be interrupted, prices fluctuate,… creating unwanted consequences for the coffee industry.

Following concerns, the ECF also expressed that the EU should make modifications appropriate to the general situation of actors in the supply chain. ECF and its members remain fully committed to the spirit of EUDR. ​Stakeholders will continue working to ensure that the common goals set by the European Commission are met by all, at the appropriate time, without causing unfortunate consequences.

Warehouses in the EU are forced to destroy green coffee inventories that do not meet EUDR standards

Since its publication, the EU’s deforestation law has created quite mixed reactions. Previously, many organizations have expressed reservations about implementing deforestation measures and the impact it will have on the environment. How negative is it for small-scale coffee farmers? There is even speculation that some green coffee currently in EU warehouses may have to be dumped if not sold before the law comes into effect. With the ECF’s request to delay implementation, the EU Commission announced that it had received the ECF’s letter expressing concerns and would respond on time.

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Source of information: sprudge

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