Michael Smith’s Post

The Race To Map The World And Protect US$ 110 Billion Of Trade https://lnkd.in/dBKuA4RU - The Cooperator News LONDON, June 9, 2024 – The European Union Deforestation Regulation [EUDR] is a new law aimed at tackling climate change and halting biodiversity loss, threatening far-reaching consequences for over US$ 110 billion of trade annually, while economies across six continents, and suppliers are struggling to get to grips with Europe’s drive to be greener. By the end of the year, large companies handling seven key commodities — coffee, cocoa, soy, palm oil, cattle, rubber, and wood — and products derived from them will be required to prove that people in their supply chains didn’t work land that was deforested after …

keeping abreast of EU regulations and compliance will prove challenging if you are operating there as these stringent laws lead the planet in preventing climate acceleration. If you are wondering how to strategise and operate with these regulations you would do well to look up Ryan Babbage for advise.

The new EU Deforestation Regulation (EUDR) represents a significant step towards reducing the EU's impact on global deforestation and forest degradation. Effective from December 2024, the regulation requires companies to ensure their products do not originate from deforested land and comply with strict due diligence requirements, which includes providing detailed traceability of commodities such as palm oil, soy, coffee, cocoa, timber, and rubber to their plantation origins, a measure to ensure sustainable production practices and improve supply chain transparency. Critical points for businesses: Stringent Due Diligence: Companies must verify that their products comply with the EUDR standards. They must trace commodities back to their origins with plantation-level GPS information, which involves mapping full supply chains, including indirect suppliers. Comprehensive Commodity Coverage: The regulation affects a broad range of commodities and derived products, requiring comprehensive reporting and traceability for all relevant supply chains. Certification Schemes: While certifications like the Roundtable on Sustainable Palm Oil (RSPO) and Rainforest Alliance can support compliance, more is needed. Companies need internal monitoring systems to ensure full compliance with the EUDR. Risks and Penalties: Non-compliance can result in significant financial penalties, including fines of up to 4% of a company's EU revenue, confiscation of revenues from concerned products, and temporary market bans. Companies also face reputational risks and potential loss of business. Opportunities: As global demand for deforestation-free products grows, complying with the EUDR can enhance trade opportunities and position companies as leaders in sustainability. Companies operating in the EU or exporting to it must prepare now. Establishing robust compliance frameworks, implementing centralised data-gathering capabilities, and ensuring key processes are in place will be crucial to meeting the EUDR requirements and avoiding severe penalties. Contact Ryan at OceanBlocks to discuss how to proceed with these compliance requirements. https://lnkd.in/dwy46_Za #EUDR #DeforestationFree #Sustainability #SupplyChainTransparency #ClimateAction #GreenDeal #SustainableBusiness #EURegulation #ForestConservation #GlobalTrade #OceanBlocks Sources: European Commission - Regulation on Deforestation-free products PwC - Getting started with the EUDR Sustainalytics - Navigating the EUDR Global Supply Chain Law Blog - Compliance with the EUDR

The new EU Deforestation Regulation (EUDR) represents a significant step towards reducing the EU's impact on global deforestation and forest degradation. Effective from December 2024, the regulation requires companies to ensure their products do not originate from deforested land and comply with strict due diligence requirements, which includes providing detailed traceability of commodities such as palm oil, soy, coffee, cocoa, timber, and rubber to their plantation origins, a measure to ensure sustainable production practices and improve supply chain transparency. Critical points for businesses: Stringent Due Diligence: Companies must verify that their products comply with the EUDR standards. They must trace commodities back to their origins with plantation-level GPS information, which involves mapping full supply chains, including indirect suppliers. Comprehensive Commodity Coverage: The regulation affects a broad range of commodities and derived products, requiring comprehensive reporting and traceability for all relevant supply chains. Certification Schemes: While certifications like the Roundtable on Sustainable Palm Oil (RSPO) and Rainforest Alliance can support compliance, more is needed. Companies need internal monitoring systems to ensure full compliance with the EUDR. Risks and Penalties: Non-compliance can result in significant financial penalties, including fines of up to 4% of a company's EU revenue, confiscation of revenues from concerned products, and temporary market bans. Companies also face reputational risks and potential loss of business. Opportunities: As global demand for deforestation-free products grows, complying with the EUDR can enhance trade opportunities and position companies as leaders in sustainability. Companies operating in the EU or exporting to it must prepare now. Establishing robust compliance frameworks, implementing centralised data-gathering capabilities, and ensuring key processes are in place will be crucial to meeting the EUDR requirements and avoiding severe penalties. Contact Ryan at OceanBlocks to discuss how to proceed with these compliance requirements. https://lnkd.in/dnT5Vwmi #EUDR #DeforestationFree #Sustainability #SupplyChainTransparency #ClimateAction #GreenDeal #SustainableBusiness #EURegulation #ForestConservation #GlobalTrade #OceanBlocks Sources: European Commission - Regulation on Deforestation-free products PwC - Getting started with the EUDR Sustainalytics - Navigating the EUDR Global Supply Chain Law Blog - Compliance with the EUDR

https://lnkd.in/etQaxT2Q At SASA Solutions, we are committed to supporting sustainable practices and helping businesses navigate regulatory changes that promote environmental protection. In June 2023, the EU Deforestation Regulation (EUDR) came into force, marking a significant step towards reducing the EU's impact on global deforestation. From December 30, 2024, companies trading in key commodities including palm oil, cocoa, and coffee will be required to prove that these products do not originate from deforested areas or contribute to forest degradation. This regulation aims to promote deforestation-free supply chains, reduce greenhouse gas emissions, and protect the rights of indigenous peoples. To comply, businesses must conduct rigorous due diligence, ensuring transparency and traceability throughout their supply chains. This involves collecting detailed product information, performing risk assessments, and potentially undergoing independent audits. It's crucial to start preparing now. At SASA Solutions, we offer a comprehensive platform to help your business align with the EUDR requirements and achieve sustainability goals. Together, we can make a positive impact on our environment and ensure a greener future. #SustainableBusiness #EUDR #DeforestationFree #SupplyChain #SASASolutions

🌍🚜 Empowering Farmers with Deforestation-Free Trade Gateway #DFTG 🌱🌿 In the context of #EUDR, the International Trade Centre is developing a new platform aimed at enhancing interoperability between existing IT systems for #datacollection and #datatraceability. The goal? To #empower farmers by ensuring they own their data and don’t need to repeatedly provide the same information across multiple platforms. By connecting different sources of information, the #DFTG gateway ensures that farmers and SMEs contributing to data collection retain ownership and are rewarded for their sustainability efforts through integrated supply chain mechanisms. Learn more in this article from Reuters: https://lnkd.in/e4jfDPCg #Sustainability #DeforestationFree #Trade #FarmersEmpowerment #DataOwnership #Interoperability #SupplyChain #ITC #EUDR #EUDeforestationRegulation

The debate we are seeing over EUDR is important.    If done correctly, government policy can incentivise private sector investment to support farmers and the broader agricultural sector adapt to greener practices.   However, if done incorrectly, or in isolation, the rules could just change where commodities end up and we risk passing the costs of compliance onto those with the least ability to adapt to the new norms - including small holder farmers.   Read my opinion piece for the Thomson Reuters Foundation here, for more information: https://lnkd.in/eBZiiu4i What do you think? Tropical Forest Alliance, Felipe Carazo, Duncan Brack, Jack Lloyd, We Mean Business Coalition, Proforest, Innovation Forum, The Consumer Goods Forum #Deforestation #EUDR #EU #TropicalForests #Commodities #SmallHolders

The European Union Deforestation - free Regulation (EUDR) regards, wood and wood products, coffee and rubber that are among Vietnam’s main export sector. The goal of regulation is to reduce the risk of deforestation due to European Consumption. The European Union Deforestation Regulation which is expected to take affect from December 2024 will directly affect stakeholders in the supply chain of coffee. Supply chain will face many challenges particularly in terms of location data, traceability, monitoring system, and deforestation free supply chain management. The Ministry of agriculture and rural development considers compliance with this regulation not only necessary to meet the requirements of the EU market for exporting key commodities but also an opportunity to accelerate the implementation of Vietnam’s agricultural development strategy towards transparency, responsibility, sustainability and green growth. For importers, this regulation provides assurance that the coffee they are sourcing meets certain environmental standards. However, by supporting sustainable coffee production, importers contribute to the preservation of biodiversity and ecosystems in coffee-growing regions, which can have positive impacts on local communities and economies.

As a Farmer, I Oppose the EU-Mercosur Agreement The EU-Mercosur trade agreement contradicts the EU Green Deal’s objectives and threatens European farmers, the environment, and rural communities. It promotes an unsustainable trade model that prioritizes short-term economic gains over long-term sustainability. The agreement’s massive carbon footprint is a key issue. Transporting agricultural goods like beef and soy across continents significantly increases greenhouse gas emissions. Moreover, it incentivizes deforestation in the Amazon, destroying a critical carbon sink, further accelerating climate change. These actions directly undermine the EU’s climate commitments and the Green Deal’s ambition to reduce emissions. Unfair competition is another major concern. European farmers adhere to strict regulations on sustainability, food safety, and animal welfare, while Mercosur countries operate with lower standards. This disparity allows artificially cheap imports to flood European markets, placing local farmers at an economic disadvantage and devaluing their efforts to uphold high environmental and ethical standards. The agreement also poses a severe threat to rural communities. Many small and medium-sized farms, already under pressure, will struggle to compete and face closure. This accelerates rural depopulation and risks the loss of Europe’s cultural and agricultural heritage. Additionally, the deal compromises food security and sovereignty. Relying on imports from regions with unstable political and environmental conditions is risky. Consumers also demand sustainable and ethical food systems, and the agreement disregards these values by supporting imports tied to deforestation, poor labor practices, and unsustainable farming. In summary, the EU-Mercosur agreement undermines European farmers, worsens climate impacts, and contradicts the EU Green Deal. It sacrifices local agriculture and sustainability for imports with a high carbon footprint and lower standards. Policymakers must reject this agreement and prioritize protecting local farming, reducing emissions, and upholding ethical trade practices.

EU is dispatching more officials on an information tour about the EUDR. Environment Commissioner Sinkevicius himself recently toured Latin America and Africa where the legislation was a subject of discussions with local governments. Not finalizing and implementing the legislation “would be a huge mistake for this planet, for our climate resilience,” .  Meanwhile, there are small signs of how the regulation is quietly starting to reshape trade. Palm oil exporters are already diverting hard-to-trace supplies to regions outside Europe, raising concerns it may undermine efforts to eradicate deforestation.  Ethiopia’s Oromia farmers are exploring alternative markets. Uganda, another large coffee exporter dependent on the EU, is meanwhile trying to expand its trade with the Balkans. One thing is clear. Farmers and companies want to get compensated for their efforts to comply. And that spells higher prices for European consumers.