9 Aug 2024
Fairtrade Statement on the EU Deforestation Regulation
Fairtrade International strongly believes in the objectives of EU Deforestation Regulation (EUDR) to create sustainable supply chains by preventing the sale and import of forest-damaging products. But more financial support and clarification of the technical terms are needed from the European Commission (EC) in order for coffee and cocoa producers to meet the 30 December 2024 deadline. (30 June 2025 for small and micro enterprises).
The 2023 regulation applies to companies placing relevant commodities or products on the EU market or exporting those from it. They will need to demonstrate that their products are deforestation-free as of the 2020 cut-off date and are not linked to forest degradation or illegal harvesting and trade.
Fairtrade is very concerned that producer organisations will be cut off from trade with the EU market or pushed out of supply chains by larger producers not because they farm on deforested land, but because they face challenges in collecting, managing, and submitting the necessary data.
This is why we are calling on the EC to address the regulation’s shortcomings and help the millions of small-scale farmers at risk. The EC needs to immediately:
- Provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain - small-scale farmers - and their ability to comply with the regulation, the administrative burden, and the compliance costs.
- Develop a coherent EU framework strategy for supply side partnerships with producer countries that create a space for multi-stakeholder dialogue and are linked to efficient economic and trade incentives.
- Share the promised guidance document that helps clarify the application of the law, including defining key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance. Plus, update the EUDR’s Frequently Asked Questions, which have not been updated since December 2023. The more information producers have, the easier it is for them to adapt and work to meet the new requirements.
- Provide market incentives and funding to assist small-scale farmers in complying with EUDR requirements. The farmers should not have to bear the compliance costs linked to laws imposed by the EU.
In the meantime, Fairtrade continues to support producer organisation compliance as they prepare for EUDR. We updated our Cocoa Standard (2022) and Coffee Standard (2024) that require Fairtrade certified producers to strengthen their deforestation prevention, monitoring, and mitigation. The updated Standards align with the EUDR requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points.
To help cooperatives collect data on their members’ farms and their deforestation risks, Fairtrade partnered with nature tech firm Satelligence. The producer organisations provide geolocation data for each of their members’ farm plots. Satelligence’s platform verifies the data and then detects any deforestation activity within members’ boundaries, and whether or not farms are located in protected areas. It also flags deforestation near the farm, an important piece of information that contributes to cooperatives’ risk assessments. Finally, the system generates reports that cooperatives can use themselves and provide to their customers or potential customers.
Moreover, as part of our ongoing effort to digitalise fairness, Fairtrade continues to work on win-win digital solutions to help cooperatives leverage their valuable data to respond to market changes and increase market access.
To learn more about Fairtrade’s position on deforestation visit this link. You can also find more information on how Fairtrade is working to address deforestation here. To find out more about the Fair Trade Advocacy Office’s view on deforestation-fee supply chains click here.