Latest news with #EUDeforestationRegulation
Euronews
29-07-2025
- Business
- Euronews
EU deforestation law changes could aid illegal Russian timber trade
Proposed changes to the EU deforestation law supported by a majority of member states will boost the potential for illegal trade of Russian and Belarusian timber, according to an NGO which has conducted an investigation into the trade. In May 18 EU member states sent a letter to the European Commission proposing to simplify the EU Deforestation Regulation, the bloc's legislation that aims to reduce the EU's impact on global deforestation. The law entered into force in June 2023 and classifies countries according to their risk of deforestation in the production of seven commodities: cattle, cocoa, coffee, oil palm, rubber, soya, and wood. The European Commission decided to postpone its implementation to 30 December 2025 for large and medium-sized companies, and to 30 June 2026 for micro and small companies, following pressure from member states. The regulation boosts controls over illegal imports of timber by introducing more mandatory border checks and compulsory geolocation of timber. "Geolocation is a very powerful tool because it can be used to debunk fake harvest and false origin claims,' Tara Ganesh, lead timber expert at the NGO Earthsight told Euronews in an interview. The 'No Risk' category 'The way the current proposal is worded, it would strip away a key part of the law, the requirement for geolocation in certain countries. For so-called 'no-risk' countries, they would be exempt from geolocation requirements, and there would also be no obligation for authorities to carry out a minimum number of checks on those countries," Ganesh said. The EU deforestation law categorises countries from low to high risk of deforestation. Based on the risk category, different rules apply. For instance, for a high risk category, more layers of control are mandatory. In the draft reform, member states want to introduce a new 'no risk' category with lighter rules, which Ganesh claims would be open to abuse by those seeking to circumvent sanctions by importing timber from Russia and Belarus. 'Several NGOs around the world have shown that wood, not just from Russia, but also from other high-risk tropical countries and deforestation hotspots, is regularly laundered through countries like China. Essentially, what we are calling for is for the European Commission to firmly reject the zero-risk proposal from the outset and to implement the law as it stands by the end of this year," Ganesh said. EU countries gaining more from the illegal imports Ganesh said that eight of the countries pushing for these amendments already account for 67% of the illegal timber market in the EU currently subjected to sanctions. "Incidentally, many of the member states calling for [simplifying the legislation] are also among those receiving some of the highest volumes of conflict plywood we have been documenting. In particular, eight of the top ten EU importers of conflict plywood, according to the most recent data, are among the member states pushing for the reform," Ganesh told Euronews. Russia is among the largest producers of wood worldwide, and its birch plywood is used for a range of purposes including much furniture. Following Russia's invasion of Ukraine, the EU imposed sanctions on wood products on Russia and Belarus. In January Earthsight published the results of an undercover investigation, which claimed that the EU systematically imported more than €1.5 billion of illegal Russian and Belarusian birch plywood since sanctions came into effect in July 2022. In updated research published in July, the NGO claimed that further €273 million's worth of illegal plywood was imported between November 2024 and April 2025, and said the circumvention is still ongoing. 'We saw that as soon as the sanctions took effect, the flow of timber from Russia stopped or declined drastically, and at the same time, imports from third countries rose,' Ganesh said, earmarking China, Georgia, Kazakhstan and Turkey as among countries from which exports had increased significantly over that time. They are able to get fake certificates, even from big labelling companies, the investigation claims. 'Our report was all about showing how companies in these third countries are simply sticking new labels and new packaging on Russian-manufactured goods, then sending them to the EU with documents originating from those third countries. For the EU importer, they are able to safely claim that the products are manufactured, for instance, in China,' she added. Euronews contacted the European Commission for comment on the investigation and its reactions. Countries seeking the simplification of the Deforestation Regulation are Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
Forbes
25-07-2025
- Politics
- Forbes
Will The EU Postpone Its Deforestation Law, Yet Again?
Aerial picture of a deforested area close to Sinop, Mato Grosso State, Brazil, taken on August 7, ... More 2020. (Photo by FLORIAN PLAUCHEUR/AFP via Getty Images) AFP via Getty Images Will the EU deforestation law be postponed again? Given how events have unfolded this month, this is a question worth asking. The law is set to take effect in December 2025 and is seen as the EU's global leadership in curbing deforestation. But this month, a major chocolate company asked the government to delay implementation further, citing practical challenges. In addition, many EU Member States supported a proposal to the European Commission requesting simplification —a move that could also have implications for the implementation timeline. On the other hand, many civil society groups maintain that further delay would send the wrong signal that the law is negotiable under pressure. So, which way will the law tilt? It is essential to stay alert to how this plot unfolds. In my post on Climate Policy Development to Follow in 2025 , I flagged this as a space to watch. With the growing debate, it's worth taking a closer look to assess new developments and uncover concerns. The EU Deforestation Regulation (famously called EUDR) is a first-of-its-kind regulation that checks the import of deforestation-linked products into EU markets. Seven product categories are under the radar: cattle, cocoa, palm oil, rubber, soya, coffee, and wood from deforested regions. The regulation was passed by the EU in 2023 and initially set for implementation in December 2024. It was postponed by a year last year until 2025, due to demands from producer countries and companies asking for more time to prepare for compliance. With only six months left before implementation, one wonders: Will it be further delayed? Forests play a critical role in absorbing carbon from the atmosphere. Research released yesterday by the World Resources Institute's Global Forest Watch showcased that our forest carbon sink reached its lowest point in the past two decades due to fires and persistent deforestation. The forest carbon sink could only absorb a quarter of its usual emissions in the past two years. This has disastrous impacts on us and our planet. That's why regulations like the EUDR that curb deforestation are more urgent than ever. Mondelez, Cadbury's parent company, called for the EU to delay EUDR implementation earlier this month. The company's key reason for this request was practical hurdles in implementing the regulation, especially at a time when the industry is facing high cocoa prices. This year, crop diseases have impacted cocoa prices, constrained supply and pushed up costs for companies. As a result, dealing with the increased compliance costs related to reporting on EUDR would be especially challenging. Mondelez is reportedly lobbying other US chocolate companies to support this request. However, there isn't a consensus. Mars and Hershey—two leading US chocolate manufacturers—did not join Nestlé and Ferrero in signing a letter supporting the delay. Companies like Nestlé have made clear they do not want further delays. Nestlé has already begun implementing systems to comply with the new regulation. An additional delay, they argue, would create uncertainty and negatively affect first-mover companies. So the big question is, are companies ready for EUDR, or are the delayed requests just excuses? Many firms are preparing for compliance. For example, according to a report by Food Navigator , 99% of Nestlé's key ingredients were considered deforestation-free in 2022. The company publicly stated that it was committed to deforestation-free supply chains in 2010, and by March 2020, 75% of its commodities were verified as deforestation-free However, Nestlé was questioned by the Rainforest Action Network on the lack of independent verification and for failing to protect farmers' human rights. Still, compared to others, Nestlé is performing better. An analysis by the same network assessing how well major brands address deforestation and human rights in their supply chains ranked Mondelez and Ferrero at the bottom among the ten companies evaluated. At the same time, Nestlé's performance was scored better. Many EU Countries Say the Deforestation Law Needs to Be Simpler Agriculture ministers from Austria and Luxembourg argued that the regulation, as it stands, is onerous for countries with no exposure to deforestation-linked commodities. They proposed simplifying the regulation and adding a new no-risk category to the benchmarking system. Eighteen EU Member States supported this idea, but a vote on 24 June did not accept the proposal. Still, this push reveals that many countries see the compliance requirements as burdensome and are not yet ready to take them on. Under the current EUDR country benchmarking, introduced in May this year, countries are grouped into three categories based on deforestation risk: low, standard, and high risk. The ministers suggested the no-risk category to ensure that countries not exposed to deforestation or have sufficient policies to address it do not have to fulfil multiple compliance requirements. However, civil society groups strongly oppose this idea. Including such a no-risk category could weaken the regulation; countries in this category could be exempt from geolocation requirements. Geolocation data is critical—it tracks whether products come from deforested areas. Removing this requirement could create loopholes. For example, there have been reports of Russian birchwood being relabelled as originating from China to bypass sanctions on Russian imports. Countries Most Exposed to Deforestation Not Classified as High Risk The new benchmarking system under EUDR classifies only four countries as high risk: Belarus, Myanmar, North Korea, and Russia. These countries are not typically associated with tropical deforestation. The high-risk countries were included because they are subject to sanctions. Surprisingly, Brazil—which has some of the highest deforestation rates globally—is classified as standard risk. One could argue that applying a standard label to a country with extensive deforestation sends the wrong message. From 2002 to 2024, Brazil lost about 33.5 million hectares of primary forest, 47% of its total tree cover loss. Under EUDR, high-risk and standard-risk countries must follow similar compliance requirements, such as risk assessments and mitigation, as specified under Articles 10 and 11 of the law. However, enforcement differs: for high-risk countries, at least 9% of operators and product volumes must be checked annually, while only 3% must be checked for standard-risk countries. The EUDR will be reviewed in 2028 as part of the broader evaluation process; there could be a potential to take a stock then of what is and is not working well under the current system. All Eyes on EU With only a few months left until deforestation law comes into force, establishing a system that could help protect our trees and biodiversity, all eyes are on the Commission. Will it be firm or give in to the mounting pressure?
Daily Express
23-07-2025
- Business
- Daily Express
Net zero more than renewable energy
Published on: Wednesday, July 23, 2025 Published on: Wed, Jul 23, 2025 By: Sisca Humphrey Text Size: Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. Kota Kinabalu: Net zero is not just about renewable energy, but it is about a systemic transformation that reshapes supply chains, product design, social commitments and innovation, said Head of Group Transformation at FGV Holdings Berhad Dr Gideon Tan. Speaking at the Marim Conference 2025 in here, recently, Dr Tan said the company's climate action efforts extend far beyond emissions and energy. 'Net zero is not just solar panels or certificates, it's a whole-of-organisation agenda,' he said. To contextualise FGV's sustainability journey, he said the company's complex business divisions, ranging from plantations and downstream processing to logistics, healthcare and even education. He noted that 74 per cent of FGV's palm oil crops come from smallholders, mirroring Asia's broader food system, which heavily depends on them. 'We're not just operating commercial estates. We run clinics and have built 17 schools for the children of migrant workers,' he said. Dr Tan framed the company's climate strategy around two pillars, which are adaptation and mitigation. 'Managing the effects of climate change is adaptation. Tackling the causes is mitigation. We need to do both,' he said. On adaptation, FGV is addressing climate extremes such as flooding and droughts while responding to global policies like the EU Deforestation Regulation (EUDR). Unable to expand land use due to deforestation restrictions, the group has focused on increasing yields per hectare. 'We no longer have the option to expand land. Yield improvement is the only way forward,' he said, citing their 56-year-old R&D centre that develops higher-yield planting materials. FGV has also deployed technologies like the FGV Geodagger, a satellite-linked device for precision replanting. Turning to mitigation, he emphasised the importance of understanding company emissions through inventory baselining, a process recently validated under the SBTi (Science-Based Targets initiative). The group's mitigation roadmap includes energy efficiency, solar power, bioenergy and transportation reforms. 'Our plantations operate in areas without public utilities. We build our own water, wastewater and energy systems,' he said. On energy efficiency, FGV performs audits across its supply chain and encourages internal innovation. One in-house invention is an electric transporter to replace petrol units for field operations. 'We want our employees to be innovators and our electric transporter was built in-house,' Dr Tan said. FGV's solar strategy leverages Malaysia's NETR framework and includes various ownership and feed-in tariff models. However, it's in bioenergy that the company sees significant potential. FGV operates biogas plants capturing methane emissions from mill effluent ponds, which is a major source of GHG. 'We capture methane before it reaches the atmosphere, one tonne of methane is equivalent to 28 tonnes of CO₂,' he said. It also operates two biomass power plants, including one in Sabah's off-grid areas and is exploring diverse applications for palm biomass, ranging from compost to aviation fuel. 'Palm oil uses only 0.5 per cent of the world's agricultural land, yet produces over a third of global vegetable oil supply,' he said, highlighting the efficiency of palm oil in the global food system. FGV also turns biomass into animal feed using black soldier fly larvae in what he calls a 'bio-refinery without a factory'. 'We turn waste into protein with black soldier fly larvae. It's a bio-refinery without a factory,' he said. As for transportation, FGV is replacing petrol-based field vehicles with EV models and trialling B100 biodiesel in logistics trucks and passenger vehicles. Dr Tan reiterated that net zero should not be reduced to a single target or technology. 'Net zero is not a slogan. It's a systemic shift in how we operate across supply chains, products and people,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
22-07-2025
- Business
- New Straits Times
Malaysia moves to secure low-risk status under EU deforestation rules
KUALA LUMPUR: Malaysia is rolling out coordinated strategies to secure its status as a low-risk country under the EU's deforestation rules, with efforts spanning forest monitoring, regulatory compliance, and sustainable land management. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said one of the key strategies is coordinating the implementation of the EU Deforestation Regulation (EUDR) across multiple ministries and agencies. These include forest data management, enforcement and sustainable forest governance, he said. The European Union will by June 30 unveil the much anticipated "country benchmarking system" under the EUDR. It will divide countries into one of three tiers: "low", "standard" or "high" risk, with escalating due diligence and compliance obligations aimed at minimising EU's contributions to global deforestation and forest degradation. It requires seven commodities and their derivatives — cattle, cocoa, coffee, palm oil, rubber, soyabean and wood — entering the EU market to be deforestation-free, legally produced and covered by a due diligence statement. Johari (BN–Titiwangsa) said that his ministry is also working to ensure that Malaysia's agri-commodity products exported to the EU meet EUDR requirements through the adoption of sustainable certification schemes such as the Malaysian Sustainable Palm Oil Certification Scheme, the Malaysian Timber Certification Scheme, and the Malaysian Sustainable Natural Rubber Guidelines. "Relevant issues that may affect the accuracy of Malaysia's latest forest data submitted for the Global Forest Resources Assessment report to the Food and Agriculture Organisation, which is used in the EUDR risk classification process, are also discussed," he said in a written parliamentary reply. Johari also said recommendations would be submitted to the government regarding compliance measures that need to be implemented by the relevant ministries and agencies. "These strategies reflect our proactive efforts to ensure Malaysia is classified as a low-risk country and demonstrate the Ministry's commitment to keeping the country's agri-commodity products competitive in the EU market," he said. He was responding to Datuk Willie Mongin (GPS–Puncak Borneo), who had asked about the country's response to the EUDR framework and the ministry's strategies to ensure Malaysia achieves low-risk status. Last month, the government formed a Special Committee to spearhead the country's response to the EUDR, aiming to ensure continued access to the EU market and strengthen sustainability compliance across key export sectors. Chaired by Johari, the committee involves three key ministries, including the Plantation and Commodities Ministry, the Natural Resources and Environmental Sustainability Ministry, as well as the Investment, Trade and Industry Ministry. Their respective secretaries general will co-chair the working committee. The committee will also act as the central channel for Malaysia's engagement with the European Commission, including the submission of official datasets, policy updates and participation in technical exchanges.
Barnama
19-07-2025
- Business
- Barnama
Rubber Market Seen Trading Mixed Next Week Amid Continued Caution
By K. Naveen Prabu KUALA LUMPUR, July 19 (Bernama) -- The Malaysian rubber market is expected to trade mixed next week amid continued caution over US tariffs, said the Malaysian Rubber Glove Manufacturers Association (MARGMA). Improved indicators from the United States (US) and China, alongside continued growth in the electric vehicle (EV) sector, could offer price support, it said. However, it cautioned that the full impact of US trade tariffs remains unclear, adding to overall market uncertainty. 'The overall market direction will largely depend on further developments surrounding US trade policy and the actual economic consequences of the tariffs,' MARGMA said. Industry expert Denis Low agrees that the market is likely to remain cautious and range-bound, but with a slight upward bias on demand-side optimism and supply-side constraints. 'The volatility of the exchange rate will also play a significant role, as it is increasingly driven by geopolitics rather than real economic fundamentals,' he added. Low said he expects a potential technical rebound in prices due to tighter supply arising from adverse weather conditions and regulatory pressure. 'There ought to be a technical rebound on rubber demand and prices, as supply is bound to be tight due mainly to the climate change phenomenon and the approaching EU Deforestation Regulation (EUDR) deadline,' he added. Low noted that compliance with the EUDR remains a challenge for many producers, with concerns over governance and readiness potentially affecting exports to Europe when enforcement begins in January 2025. On a week-to-week basis, the Malaysian Rubber Board's reference price for Standard Malaysian Rubber 20 (SMR 20) increased by 10 sen to 736.00 sen per kilogramme (kg), while latex in bulk went up by five sen to 571.50sen per kg. -- BERNAMA
