Cameroon Introduces 20% Tax Rebate for Zero-Deforestation Exports to Align with EUDR
In a bold move to combat deforestation and align with international sustainability standards, Cameroon has introduced a groundbreaking tax incentive for exporters of “zero deforestation” certified products.Effective January 1, 2025, the new policy offers a 20% rebate on the export of cocoa, rubber, and logs, provided they meet stringent anti-deforestation criteria. This initiative, embedded in the 2025 finance law signed by Minister of Finance Louis paul Motazé, aims to reduce costs for exporters while promoting environmentally pleasant agricultural practices.
The rebate applies exclusively to products certified as “zero deforestation,” meaning exporters will only pay customs duties on 80% of the FOB value of their cargoes. This financial incentive is designed to encourage enduring agriculture and responsible forestry management,particularly in the cultivation of cocoa and rubber,and also logging. According to the Ministry of Finance, the measure is part of a broader strategy to preserve Cameroon’s vast equatorial forests and support the transition to sustainable practices.
Preparing for the European deforestation Regulation (EUDR)
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The timing of this policy is no coincidence. Cameroon is positioning itself to comply with the European Deforestation Regulation (EUDR), which is set to take effect at the end of 2025. The EUDR prohibits the import and marketing of products linked to deforestation in Europe, including cocoa, coffee, rubber, palm oil, soy, beef, and wood. Originally scheduled for December 2024,the regulation was postponed to October 2024 due to insufficient preparation by some stakeholders.
To meet the EUDR’s requirements, exporters must ensure their products are certified as “zero deforestation” and comply with their country’s environmental legislation. They are also required to submit a due diligence declaration to a centralized information system managed by the European Commission, which will collect evidence of compliance.
A Collaborative Approach to Sustainability
Cameroon is taking proactive steps to address the challenges of complying with the EUDR. On August 28, 2024, six Cameroonian cocoa bean exporters signed an agreement in Yaoundé to share georeferencing data from cocoa and coffee plantations. This initiative, overseen by the Interprofessional Cocoa and Coffee Council (CICC), aims to enhance traceability and sustainability while providing precise mapping of agricultural plots.
“This system will allow exporters to demonstrate that their products meet the sustainability standards required by Europe,” the Ministry of Finance stated. By fostering collaboration among exporters, Cameroon is not only ensuring compliance with international regulations but also promoting long-term environmental stewardship.
Key Takeaways
| Policy | Details |
|———————————|—————————————————————————–|
| Tax rebate | 20% rebate on exports of “zero deforestation” certified cocoa, rubber, and logs. |
| Effective Date | January 1, 2025 |
| Objective | Promote sustainable agriculture and forestry; align with EUDR requirements. |
| EUDR Compliance | Exporters must certify products as “zero deforestation” and submit due diligence declarations. |
| Collaborative Initiative | Six cocoa exporters share georeferencing data to ensure traceability and sustainability. |
A Step Toward a Greener Future
Cameroon’s new tax rebate is more than just a financial incentive—it’s a commitment to preserving its natural resources and meeting global sustainability standards. By encouraging exporters to adopt environmentally friendly practices, the country is paving the way for a greener, more sustainable future.
As the EUDR deadline approaches, Cameroon’s proactive measures serve as a model for other nations grappling with the challenges of deforestation and sustainable agriculture. The world will be watching to see how this Central African nation balances economic growth with environmental preservation.
For more insights into Cameroon’s sustainability efforts, visit the European Union’s Delegation in Cameroon.
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Cameroon’s 20% Tax Rebate for Zero-Deforestation Exports: A Conversation with Sustainability expert Dr. Amina Nkeng
In a bold move too combat deforestation and align with international sustainability standards, Cameroon has introduced a groundbreaking tax incentive for exporters of “zero deforestation” certified products. Effective January 1, 2025, teh new policy offers a 20% rebate on the export of cocoa, rubber, and logs, provided they meet stringent anti-deforestation criteria.To delve deeper into this initiative and its implications, we sat down with Dr. Amina Nkeng, a renowned expert in sustainable agriculture and environmental policy, to discuss Cameroon’s efforts to align with the European Deforestation Regulation (EUDR) and its broader impact on the region.
Understanding Cameroon’s New tax Rebate Policy
Senior Editor: Dr.Nkeng, thank you for joining us. Cameroon’s new 20% tax rebate for zero-deforestation exports is a significant step. Can you explain how this policy works and why it’s so crucial?
Dr. Amina Nkeng: Thank you for having me. The policy is quite straightforward: exporters who can certify their products as “zero deforestation” will receive a 20% rebate on customs duties. This means they only pay 80% of the FOB value of their cargoes. The importance lies in its dual purpose—it reduces costs for exporters while incentivizing sustainable practices. By tying financial benefits to environmental compliance, Cameroon is encouraging businesses to adopt practices that protect its vast equatorial forests.
Senior Editor: How does this align with Cameroon’s broader environmental goals?
Dr. Amina Nkeng: Cameroon has long been committed to preserving its natural resources, but deforestation remains a significant challenge. This policy is part of a larger strategy to transition to sustainable agriculture and forestry. By promoting zero-deforestation practices, Cameroon is not only safeguarding its forests but also positioning itself as a leader in sustainable trade within the region.
Preparing for the European Deforestation Regulation (EUDR)
Senior Editor: The timing of this policy seems closely tied to the EUDR, which is set to take effect in 2025. Can you explain how Cameroon is preparing for this regulation?
Dr. Amina Nkeng: Absolutely. The EUDR is a game-changer for countries exporting to Europe. It prohibits the import of products linked to deforestation, including cocoa, coffee, rubber, and wood. Cameroon is proactively positioning itself to comply by ensuring its exporters meet the “zero deforestation” certification requirements. This includes adhering to national environmental laws and submitting due diligence declarations to the European Commission’s centralized system.
Senior Editor: What challenges do you foresee for Cameroonian exporters in meeting these requirements?
Dr. Amina Nkeng: The main challenge is ensuring traceability and openness across supply chains. Many smallholder farmers and exporters may lack the resources or technology to meet these standards. However, initiatives like the recent agreement among cocoa exporters to share georeferencing data are a step in the right direction. Collaboration and capacity-building will be key to overcoming these hurdles.
A Collaborative Approach to Sustainability
Senior Editor: Speaking of collaboration, can you elaborate on the recent agreement signed by six cocoa exporters to share georeferencing data? How does this initiative support sustainability?
Dr. Amina Nkeng: This initiative is a significant milestone. By sharing georeferencing data,exporters can provide precise mapping of agricultural plots,which enhances traceability and ensures compliance with EUDR standards. It also fosters transparency and accountability within the industry. The Interprofessional Cocoa and Coffee Council (CICC) is playing a crucial role in overseeing this effort, which not only benefits exporters but also promotes long-term environmental stewardship.
Senior Editor: How does this collaborative approach benefit Cameroon’s economy and environment?
Dr. Amina nkeng: Economically, it ensures that Cameroonian products remain competitive in the European market.Environmentally, it reduces the risk of deforestation and promotes sustainable land use. This dual benefit is essential for achieving a balance between economic growth and environmental preservation.
Key Takeaways and Future Outlook
Senior Editor: What are the key takeaways from Cameroon’s new policy, and what does the future hold for sustainable trade in the region?
Dr. Amina Nkeng: The key takeaway is that Cameroon is taking proactive steps to align with global sustainability standards. The 20% tax rebate is not just a financial incentive; it’s a commitment to preserving natural resources and fostering sustainable practices. Looking ahead, I believe Cameroon’s efforts will serve as a model for other nations grappling with similar challenges. The world will be watching to see how this Central African nation balances economic growth with environmental preservation.
Senior Editor: Thank you, Dr. Nkeng, for your insights. it’s clear that Cameroon’s new policy is a significant step toward a greener future.
Dr. Amina Nkeng: Thank you. It’s an exciting time for sustainable development in Cameroon, and I’m optimistic about the positive changes ahead.
For more facts on Cameroon’s sustainability efforts, visit the European Union’s Delegation in Cameroon.
