The European Unionโs new law banning the import of commodities linked to deforestation is still a little over a year away from taking effect, but already the problems are mounting. Big names companies like Lavazza and chocolate maker Mondelez have already pushed back on the laws, stating that they wonโt have the systems in place to comply with the new regulations.
Some industry watchdogs agree with the companiesโ unpreparedness and are raising concerns that producers may suffer the majority of the lawโs negative impact.
As reported by Reuters, the law doesnโt take effect until the end of 2024, where it will then require EU-based companies to show that the commodities they are bringing inโincluding things like coffee, cocoa, beef, soy, rubber and palm oilโare not linked with deforestation somewhere on the planet. If they are unable to prove the sustainability of their imports, the companies face rather sizable fines, up to โ4% of a companyโs turnover in an EU member state.โ
With some companies already throwing in the towel and admitting their wonโt be ready, many in the coffee industry are worried the producers will be the ones ultimately impacted. According to the Coffee Barometer, a bi-annual report produced by NGOs Conservation International and Solidaridad, instead of putting traceability mechanisms in place, these companies may simply shift their focus to producers that already have such systems, leaving many of small-scale producers without the major buyers they have relied on.
Major producing countries like Brazil, who already have some traceability measures, may see more traffic, meanwhile countries like Ethiopia, Uganda, Tanzania, Kenya, Peru, Guatemala, Nicaragua, El Salvador, Costa Rica, and Mexico that have “inadequate infrastructure and low levels of traceability” may see less. Or, they would turn around and sell to countries that donโt have the same level of traceability requirements, thus negating the intent of the law: decreasing deforestation.
The NGOs behind the Coffee Barometer instead suggest investing in โfarming communities in vulnerable landsโ as โessential to tackling the root causes of global deforestation.โ Per the Coffee Barometer, 130,000 hectares of forest are lost annually due to coffee farming, mostly by farmers at or below the poverty line.
Zac Cadwaladerย is the managing editor at Sprudge Media Network and a staff writer based in Dallas.ย Read more Zac Cadwaladerย on Sprudge.
