Featured

Eleven countries demand EU weakens deforestation law further, document shows

 The European Union is facing further pressure from member countries to delay and weaken its upcoming law to restrict deforestation, with 11 governments demanding changes, a document seen by Reuters showed.

The world-first policy aims to end the 10% of global deforestation fuelled by EU consumption of imported soy, beef, palm oil and other products, but has become a politically contested part of Europe’s green agenda.

The EU already delayed its launch by a year to Dec. 2025, following complaints from trading partners including Brazil and the U.S., and cut back reporting rules after industry criticism. Last week, the Commission said it would spare the vast majority of countries the strictest checks.

A group of 11 countries, led by Austria and Luxembourg, has demanded the European Commission simplify the rules further, and urged delaying its application date again.

“The requirements imposed on farmers and foresters remain high, if not impossible to implement. They are disproportionate to the regulation’s objective,” the countries said in a paper, which EU agriculture ministers will discuss in Brussels on Monday.

Bulgaria, Croatia, the Czech Republic, Finland, Italy, Latvia, Portugal, Romania and Slovenia also signed the paper.

From December, the EU policy would require operators placing soy, beef, palm oil, cocoa, coffee and other goods onto the EU market, to provide due diligence statements proving the commodities did not fuel deforestation.

Due diligence requirements would also apply to EU exports, making countries worried about the impact on their own industries.

Companies could face penalties of up to 4% of their EU turnover for non-compliance.

The governments proposed amendments including creating a new class of countries deemed to have very low risk of deforestation, which would be exempt from customs checks and tracking the origin of goods.

A Commission spokesperson did not immediately respond to a request for comment.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

Recent Posts

Carbon pricing and inequality: Understanding the distributional costs of climate policy

Carbon pricing is widely regarded as an effective tool to reduce greenhouse gas emissions, yet…

5 days ago

From the outside in: How international manager rotations narrow the gender pay gap and change cultural norms

Most policy debates on gender inequality focus on formal rules such as pay transparency, quotas,…

5 days ago

From earth to heaven: The changing drivers of monetary policy

Business cycles in advanced economies are increasingly driven by global rather than domestic shocks. This…

5 days ago

The impact of Brexit on foreign-born workers in the UK

How did Brexit impact the UK labour market? This column uses synthetic differences-in-differences to estimate…

5 days ago

Firms predict an AI productivity boom is coming

Comparable international survey data on artificial intelligence adoption by firms is still lacking. This column…

5 days ago

The role of spending rigidity in fiscal adjustment

Public debt is at or near record highs in many economies. This column argues that…

5 days ago