Deforestation remains a growing concern across the globe. According to the World Wildlife Fund (WWF), we lose 18.7 million acres of forests annually, which accounts for approximately 27 soccer fields per minute. This alarming rate of deforestation has caught the attention of international leaders, who are now taking steps to crack down on this issue. Recently, the European Union (EU) and the United States (U.S.) have joined forces in their efforts to combat deforestation around the world. In this article, we’ll explore the double-down approach of these international power players as they take action towards a more sustainable future.
According to a report by the World Resources Institute, the world has lost one-third of its forest, with half of that loss occurring in the last century. Two new bills being considered in the European Union and the United States aim to put an end to this by prohibiting goods linked to deforestation from entering their borders.
The European Commission finds that deforestation is still accelerating due to consumers’ demand for cheap beef, soy, chocolate, and other agricultural products. Data from the UN Food and Agriculture Organization shows that agriculture causes nearly 90% of deforestation. Deforestation is directly linked to 10 percent of all carbon dioxide emissions, according to the Intergovernmental Panel on Climate Change. Furthermore, deforestation threatens at least 28,000 species and displaces communities worldwide, potentially disrupting the livelihoods of 1.25 billion people, according to the World Wildlife Fund.
The EU Deforestation Regulation (EUDR) aims to combat deforestation by requiring companies to prove that their goods are produced lawfully and on land that was not deforested after 2020. The law will go into force in early 2023, and companies will have either 18 or 24 months, depending on their size, from that date to comply. Environmental groups like the Nature Conservancy and WWF applaud the bill and deem it groundbreaking.
Lawmakers in the United States are hopeful that the EU Deforestation Law will give new impetus to similar legislation, known as the FOREST Act (Fostering Overseas Rule of law and Environmentally Sound Trade), in the United States. Ben Lilliston, Director of Climate Change at the Institute for Agriculture and Trade Policy, says that international environmental regulation “can be modestly controversial” but argues that the FOREST Act levels the playing field, which means those in the United States who follow the rules are strengthened, and it is harder for cheaters to gain an unfair advantage.
If passed, the FOREST Act will target six of the biggest deforestation culprits: palm oil, soybeans, cocoa, cattle, rubber, and wood pulp, as well as goods produced from those commodities such as beef, chocolate, leather, or paper. If a company wants to import those products into the US market, it will need to provide information on the product’s supply chain and point of origin to prove that no forests were illegally cut down to grow it.
However, environmentalists worry that the FOREST Act and the EU Deforestation Law do not go far enough. For instance, both bills exclude vital ecosystems like wetlands and savannas from protection. Lilliston says, “Just focusing on forests is too narrow. These other natural areas are enormously valuable, and if they just shift production of cattle or cocoa from the Amazon to the Cerrado, we haven’t really gained much.”
Countries that will feel the effects of the legislation, including Brazil, Indonesia, and Malaysia, are speaking out. The Deputy Prime Minister of Malaysia says the EU Deforestation Law is “unfair” and will require significant changes to their national and economic development plans. Researchers from the Indonesian NGO Madani find that it may also be difficult for smallholder farmers to comply with the strict traceability and data requirements.
To address these concerns, the EU has established a US$1 billion fund to help producer countries reorient their economies away from extraction and deforestation. The FOREST Act will also set aside financial assistance to help countries respond to the law, some made explicitly for “civil society, Indigenous peoples, and local residents” who fight deforestation on the ground.
Lilliston emphasizes that these laws are critical in battling climate change and promoting global markets for agricultural products towards a more sustainable and ethical future. He adds, “We’re entering into a new era of trade that has to incorporate the climate crisis.”
