EU's plan to tackle global deforestation meets resistance at home
The world's forests are under threat: hundreds of millions of hectares of forest have been cleared in recent decades. The European Union wants to slow this trend – but calls to delay new rules are growing louder.
Every minute of every hour of every day, the equivalent of eighteen football pitches of tropical rainforest was destroyed last year, according to data from the University of Maryland and the World Resources Institute (WRI).
Tally it all up and the world lost 67,000 square kilometres of precious primary tropical forest in one year alone, an area twice the size of Belgium or Taiwan.
Tropical forests, which harbour the highest concentrations of biodiversity, are the most threatened of any forest biomes on the planet. They are also sponges for CO2, helping to prevent global temperatures from rising even faster than they have.
To minimize its contribution to world-wide deforestation and promote more sustainable practices among companies operating in the bloc, the EU has put forward the Deforestation Regulation (EUDR).
However, as part of a wider push against the EU's Green Deal – a cornerstone climate strategy to make Europe climate-neutral by 2050 – member states are calling for further delays in putting the law into force.
What does the EUDR aim to do?
The EUDR's goal is to stop products from entering or leaving the European market if they are made by cutting down trees. Under this law, seven raw materials - cattle, cocoa, coffee, palm oil, rubber, soya and wood - may only be sold in the EU if no forests have been cleared for them after 2020.
Firms importing the merchandise in question to the 27-nation bloc will be responsible for tracking their supply chains to prove goods did not originate from deforested zones, relying on geolocation and satellite data.
Anyone who fails to comply with the regulations faces heavy fines of at least 4% of annual turnover in the EU. Satellite and DNA analysis will be used to verify the origin of the products and whether the requirements are being met.
In the EU, Spain for example has a 'special responsibility' to reduce deforestation as it is the largest European importer of soybeans, according to a warning issued last year by the NGO Alianza Cero Deforestación.
Companies are however far from meeting this tracking requirement. In Germany, for example, Environmental Action Germany (DUH) found that out of 32 surveyed companies across the meat, poultry, dairy, and feed industries in the catering, wholesale, and retail sectors, only four could trace their soy, and just three their palm oil, back to the original cultivation area.
Taking into account the production and use of the seven listed raw materials, the European Commission last month unveiled its first benchmark that classifies countries based on deforestation risks.
Russia, Belarus, North Korea and Myanmar are the only four countries considered to be at high risk of deforestation, while Brazil and Indonesia – in the past often criticized for their extensive deforestation of rainforests – are currently placed in the medium risk category.
The list raised eyebrows among EU member states and environmental groups.
Austria's minister of agriculture and forestry, Norbert Totschnig, claimed countries with high deforestation risks were now classified as medium risk countries, adding that this undermined the efforts of 'countries like Austria, which have very strict laws and operate sustainably."
According to data from the WRI published on Statista in October, Brazil, the Democratic Republic of the Congo, Bolivia and Indonesia were among the countries with the highest primary tropical forest losses in 2023, together accounting for a loss of 2.45 million hectares that year.
Land&Forst Betriebe Österreich, an association of land managers, said: 'The current classification is incomprehensible and contradicts the clear wording of the regulation. Instead of a well-founded, data-driven assessment, political considerations seem to have played a decisive role.'
Italian Agriculture Minister Francesco Lollobrigida said 'no one denies that Belarus and Russia should be sanctioned' but called it absurd to group countries like Italy – along with others in Europe – with nations in Africa that, in his view, have significantly lower regulatory standards.
Environmental group Global Witness complained that the benchmarking system 'fell short," with 'countries like Brazil and Paraguay not categorized as 'high risk', despite the deforestation crisis consuming climate-critical forests' there.
Why are EU member states pushing for further delays?
Originally, the regulation was to apply from the end of 2024. The European Parliament however voted in December to postpone the application by one year, setting the entry into force on December 30, 2025 for large companies and June 30, 2026 for small and medium-sized enterprises.
A group of 11 EU member states is now pushing to delay the application of the law even further, arguing that 'the requirements imposed on farmers and foresters remain high, if not impossible to implement." They also criticize the amount of bureaucracy required of farmers.
In the document drafted by Luxembourg and Austria and signed by nine other countries – Bulgaria, Croatia, Finland, Italy, Latvia, Portugal, Romania, Slovenia and Czech Republic - the signatories said the requirements 'are disproportionate to the objective of the regulation, which is to prevent deforestation where it actually occurs.'
'We do not want to flood those affected in Europe with bureaucracy; we want to prevent illegal deforestation,' Totschnig said ahead of a meeting of EU agriculture ministers in Brussels last week.
His German counterpart Alois Rainer said 'the EU's initiative to curb global deforestation is a good proposal, but the bureaucratic impact on many countries in Europe goes too far."
The countries are calling for the creation of a category of countries with zero risk of deforestation, which could be exempted from obligations and controls.
Slovenia's Ministry of Agriculture, Forestry and Food responded to questions from the Slovenian press agency STA saying that the country supported the initiative to further delay the law due to the excessive administrative burden for farmers, small forest owners, entrepreneurs and national authorities. It has issued a call for further simplification of the regulation, especially for the low-risk countries.
In Romania, the Alliance for Agriculture and Cooperation (AAC), made up of four major agricultural organizations, said the law does not introduce real improvements for farmers and forest owners in the European Union.
COP30 on the horizon
Forest protection is high on the agenda of the COP30 United Nations climate conference that Brazil will host in November in the tropical city of Belem.
The Forest Declaration Assessment, a broad coalition of forest-based activist and research groups, has said leaders must show progress on reversing the deforestation trend before convening in the Amazonian city.
The EU takes part in negotiations at COP30 and is expected to push for stronger global action on deforestation and climate finance.
But its credibility may be tested, as internal divisions grow and some member states are pushing back against parts of the EU's own Green Deal policies.
The content of this article is based on reporting by AFP, Agerpres, ANSA, APA, CTK, dpa, EFE and STA as part of the European Newsroom (enr) project.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
2 hours ago
- USA Today
4 Social Security changes Washington could make to prevent benefit cuts
4 Social Security changes Washington could make to prevent benefit cuts Show Caption Hide Caption Biden criticizes Trump administration's handling of Social Security Social Security overhaul sparks criticism from Biden over service disruptions, layoffs and automation as Trump defends changes as efficiency. Straight Arrow News Social Security is an important source of income for millions of Americans, but the program has a serious financial problem. Costs have increased faster than revenues in recent years because the aging population is growing more quickly than the working population. As a result, the trust fund, the financial account that pays benefits, is on track to be depleted within a decade. Specifically, the Congressional Budget Office estimates the trust fund will be exhausted in 2034. That would eliminate one source of revenue (i.e., interest earned on trust fund reserves), and the remaining tax revenues would only cover 77% of scheduled payments. That means a 23% benefit cut would be necessary in 2035. Fortunately, the lawmakers in Washington have several years to find a better solution. Here are four Social Security changes that could prevent deep, across-the-board benefit cuts. 1. Apply the Social Security payroll tax to income above $400,000 Social Security is primarily funded by a dedicated payroll tax, which takes 6.2% of wages from workers and employers. But some income is exempt from the payroll tax. Specifically, the maximum taxable earnings limit is $176,100 in 2025. Income above that threshold is not taxed by Social Security. Importantly, the Social Security program is projected to run a $23 trillion deficit over the next 75 years as it's strained by shifting demographics. But the deficit could be slashed by applying the payroll tax to more income. For instance, including income above $400,000 would eliminate 60% of the 75-year funding shortfall, says the University of Maryland. 2. Gradually increase the Social Security payroll tax rate to 6.5% over six years Under current law, the Social Security payroll tax rate is 6.2% for workers and their employers. But gradually raising that figure would eliminate a portion of the long-term deficit. For example, increasing thetax rate by 0.05% annually over a six-year period would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. Now that I've discussed two possible changes, let's step back and look at the big picture. There are basically three ways to resolve Social Security's financial problems: (1) increase revenue, (2) reduce costs or (3) some combination of the first two options. The changes discussed so far would increase revenue, but the next two changes would cut benefits. However, they are more subtle cuts than the 23% across-the-board reduction that would follow trust fund depletion. 3. Gradually increase full retirement age to 68 by 2033 Workers are eligible for retirement benefits at age 62, but they are not entitled to their full benefit — also called the primary insurance amount (PIA) — until full retirement age (FRA). Anyone that claims before full retirement age receives a smaller payout, meaning they get less than 100% of their PIA. FRA is currently defined as 67 years old for workers born in 1960 or later, but raising the figure would reduce the long-term deficit. For instance, increasing FRA to 68 years old by 2033, meaning it would apply to workers born in 1965 or later, would eliminate 15% of the 75-year funding shortfall, according to the University of Maryland. 4. Reduce benefits for retired workers with income in the top 20% Social Security benefits are determined as percentages of two bend points. Specifically, income from the 35 highest-paid years of work is adjusted for inflation and converted to a monthly figure called the average indexed monthly earnings (AIME) amount. The AIME is then run through a formula that uses two bend points to determine the PIA for each worker. Modifying the second (highest) bend point would eliminate a portion of the long-term deficit by reducing benefits for high earners. For instance, the University of Maryland estimates that reducing benefits for individuals with income in the top 20% could reduce the 75-year funding deficit by 11%. Here's the big picture: The four changes I've discussed would eliminate 101% of Social Security's $23 trillion funding shortfall, which would prevent across-the-board benefit cuts in 2035. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $23,760 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets"could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. JoinStock Advisorto learn more about these strategies. View the "Social Security secrets" »
CNBC
2 hours ago
- CNBC
China's grueling ‘996' work culture is being debated by European startups — 7 founders and VCs on why they are resisting
The European startup scene was recently shaken by a LinkedIn debate with some venture capitalists applying pressure on founders to embrace a culture of overwork to compete on a global stage. The "996" work culture reigns supreme in China and has been adopted by various tech giants including Jack Ma's Alibaba and Bytedance's TikTok, but the system has also been the subject of much protest in recent years. Tech workers in Europe told CNBC in 2021 that they're turning down job offers, rejecting interviews, or even quitting their roles, upon learning of TikTok's 996 work culture. Sebastian Becker, general partner at Switzerland-based VC company Redalpine added to the debate on LinkedIn by addressing the new German Chancellor Friedrich Merz, who has called for removal of the legal work limit of eight hours per day in Germany in a bid to increase efficiency, while keeping the 40-hour week. Becker said Merz' proposal doesn't go far enough, as "40 hours a week won't cut it." "In Silicon Valley, 60-70 hour weeks aren't the exception — they even have a term for it: 996 — 9am to 9pm, six days a week... we can have the same amount of smart, ambitious people, but if we're consistently being outworked, we won't win," Becker said. Index Ventures Partner Martin Mignot in London explained on LinkedIn that 996 originated in China and has "quietly become the norm" at startups internationally. Part of the reason behind this most recent push is that there's a persistent view that Europe's tech and startup scene is lagging behind the U.S. and China, both of which have produced tech giants and are known for intense work cultures. However, Suranga Chandratillake, general partner at Balderton Capital, told CNBC Make It that these views are outdated as Europe has produced deca-corns in recent years— companies worth more than $10 billion including Klarna, Revolut, Wise, and The continent has yet to produce a trillion-dollar tech firm like Nvidia. "The European tech market and ecosystem is keeping up today with the U.S. and Asia... back in the 1980s the European tech scene was behind the tech scene on the West Coast of the US, but that's not the case now," Chandratillake said in an interview. The calls for Europe to adopt the 996 work culture sparked a wave of backlash. CNBC spoke with seven European startup founders and VCs on why they disagree. The obsession with China's 996 or Silicon Valley's 24/7 work culture emerges from a glorification of hustle culture in the startup landscape, founders and VCs said. "It's about a fetishization of overwork rather than smart work…it's a myth," Chandratillake said. "California is very good at telling stories and there's a lot of mythmaking around the concept of what startups look like…. there is hard work involved but if you really spend time in that ecosystem, you will discover that lots of people work really hard, but there are also periods where they don't work." Nina Mohanty, a Silicon Valley native and founder of London-based Bloom Money, said there are actually "lasting effects and unintended consequences" to adopting an aggressive overwork culture, "You only have to think about Revolut and the culture that they have is probably the closest that we've seen in Europe to the 996 culture, and they struggled," Mohanty told CNBC. "Their churn rate was incredibly high within their team, and they even struggled to get their banking license, and their culture was actually cited as one of those reasons." For its part, Revolut told CNBC it operates in a "high-growth, high-performance environment." "In line with this, we've evolved how we support our people: through value-based behaviours, structured development, and a culture that's collaborative, challenging, and built for scale," a spokesperson from Revolut said. Noa Khamallah, general partner at Don't Quit Ventures, pointed out that there's "no need for 996" and that these values are often at odds with both the European mindset and regulation. "Europe's most successful companies — from Spotify to SAP to ASML — didn't achieve dominance through overwork but through sustainable innovation cultures," Khamallah said. He offered the examples of Silicon Valley's Uber and Meta, both companies that expanded into Europe and faced massive regulatory pushback. "These examples reveal how Silicon Valley's 'move fast and break things' ethos often breaks against European values around worker rights, privacy, and sustainable business practices," Khamallah said. An always-on culture decreases retention and creates a revolving door of talent, Sarah Wernér, co-founder of Husmus, told CNBC. "Overwork today is a productivity crisis tomorrow," Wernér said. "Personally, I hope my competitors are doing 996. It makes poaching great people a lot easier when they decide they've had enough." Dama Sathianathan, a senior partner at Bethnal Green Ventures said it's unhelpful to "prescribe" working hours, especially if it means putting workers' wellbeing at risk. "Optimizing labor doesn't always lead to better productivity, or help with differentiating from other companies long-term, if you've made work devoid of meaning," Sathianathan explained. Meanwhile, the youngest generation at work are less likely to put up with overworking and tend to prioritize work-life balance. Jas Schembri-Stothart, founder of Luna, a health and wellness app for teen girls, said 996 will drive young talent away from European startups. "People may tolerate overwork for a while, but eventually it leads to churn and even resentment, especially with Gen Z and younger millennials, there's much less tolerance for toxic hustle cultures," Schembri-Stothart said. Founders insist that instead of increasing working hours, startups need more funding and resources to position themselves as key players in the global startup scene. "What Europe really needs isn't more hustle-porn it's more aggressive funding," Wernér said. "With the right level of capital, our startups can hire enough talent to work intensely without breaking themselves. If a team of 10 is burning out to keep up with a 50-person U.S. VC or Chinese government-backed startup, the problem isn't their stamina, it's their cap table." In fact, since 2015 Europe's tech startups have missed out on nearly $375 billion in growth-stage funding, with founders losing out on a potential $300 billion in European investments, according to Atomico's State of European Tech report published in 2024. Additionally, one in two companies raising funding turn to the U.S. for capital rather than Europe. "What European startups really need is access to the right resources — funding, talent, and support — to grow, innovate quickly, and scale effectively," Schembri-Stothart said. "The venture landscape in the U.S. is a different ballgame altogether, and it's tough to compete with that without a stronger ecosystem here. Founders acknowledged that the startup life requires intense hustle and grind, but it's a more nuanced picture than just adopting 996. Timothy Armoo, co-founder and former CEO of Fanbytes, an influencer marketing firm that he sold for eight figures in 2022, told CNBC that he's a "huge supporter" of this new 996 push, but admitted that timing is key. "I think there are seasons but I also think that if you are a first-time founder or if your primary goal is basically wealth creation, I'll be very candid, if this is your season, and you're stepping back, then you're not serious about it," he said. Armoo said there are no excuses because AI allows entrepreneurs to be maximally efficient as it can reduce certain time-consuming manual tasks. Meanwhile, Bloom Money's Mohanty, said that when she's not sleeping, she's working. "I think early stage teams tend to almost unknowingly or without actually saying it, work the 996 life, because when you are early stage, you just have to hustle harder with less, and especially if you're the founder, you're always on and always working, and it can be very, very difficult to turn off." Schembri-Stothart draws the line at exploiting her team to produce more work. "It's my choice to work at the weekend, but I'd never expect that on my team, it's definitely not glorified to push your teams to breaking point. Silicon Valley tech exec Dion McKenzie warned that expectations of a 996 culture could make VC funding even more out of reach for early-stage startups. "My fear is that as these new norms and trends become the status quo and benchmarks for getting funded, it excludes so many brilliant founders that value their mental health and/or can't commit to a 996 due to caregiving responsibilities or being a parent," Mckenzie said.
Yahoo
4 hours ago
- Yahoo
Deutsche Bank Considers Stablecoin or Joining Industry-Led Initiative, Exec Says
Deutsche Bank is studying stablecoins and tokenized deposits as part of its growing digital assets strategy, joining other major banks exploring blockchain infrastructure for payments and settlement. The bank is considering whether to issue its own stablecoin or join a broader industry initiative, Bloomberg reported, citing Sabih Behzad, Deutsche Bank's head of digital assets and currencies transformation. It's also weighing the development of a tokenized deposit system aimed at making payments more efficient, according to the report. Major banks in the U.S. are currently weighing the launch of a joint stablecoin in a bid to fend off competition from the cryptocurrency space. These reportedly include heavyweights like JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC). Regulatory clarity in the European Union and pending stablecoin legislation in the U.S. have helped accelerate stablecoin adoption. Behzad said banks have options that range from acting as reserve managers to launching their own digital tokens. Deutsche Bank has said in a research report that stablecoins are on the verge of mainstream adoption as crypto legislation advances under the Donald Trump administration. Germany's largest lender has, meanwhile, invested in cross-border payments firm Partior and joined Project Agorá, a central bank-backed initiative focused on wholesale tokenized payments. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
