Deforestation-free supply chains: agricultural production without forest destruction
According to the United Nations Food and Agriculture Organisation (FAO), land clearing for agricultural purposes accounts for up to 90 percent of global deforestation. This mainly affects forests in the tropics. The demand for palm oil, soya and cocoa in important consumer countries such as the U.S. and China but also the EU is considered an important driving factor alongside domestic consumption in the producer regions. For successful international forest protection, agricultural commodities must be produced as sustainably as possible. This also means: without destroying forest areas.
For this reason, an increasing number of companies are dedicating themselves to forest conservation by committing themselves to exclusively buying “deforestation-free” certified agricultural commodities. Certification is usually based on recognised sustainability standards.
The BMEL (Federal Ministry of Food and Agriculture) supports such private sector initiatives, both abroad and within Germany. Successful approaches include
- the Forum for Sustainable Palm Oil (FONAP)
- the German Initiative on Sustainable Cocoa (FNK) and
- the Forum for more Sustainable Protein Feed (FONEI).
Germany’s measures are also embedded in various multilateral initiatives. For instance, Germany is one of the founding members of the “Amsterdam Declarations Partnership” initiated in 2015 (see box). Germany also participates in corresponding measures within the scope of the Glasgow Declaration under the lead of the United Kingdom. In addition, resolutions regarding food systems and deforestation-free agricultural production were established under Germany’s G7 presidency in 2022. In subsequent years, these will need to be implemented – also within the wider G20 framework – with important producer countries.
The EU comes into play: EU Deforestation Regulation clears major hurdle
On 22 December 2022, the EU Member States introduced a Regulation in the Permanent Representatives Committee to reduce global deforestation.
The Regulation is based on the approach of the EU Timber Regulation and provides for due diligence requirements for businesses for placing products on the EU market and exporting certain raw materials and products. This is only possible if the products have been produced without destroying or degrading forest areas and in line with the legislation of the country of origin. Through this regulatory concept, the EU aims to make an important contribution against consumption-driven deforestation and forest degradation.
The regulatory scope comprises soy, palm oil, cattle, coffee, cacao, rubber and timber as well as products containing or having been made from these raw materials.
The Regulation took effect on 30 June 2023 and must be applied from 30 December 2024, after a transition period of 18 months. Small businesses are subject to a transition period of 24 months.
