Thursday, July 25, 2024

Europe Launches New Regulation to Tackle Deforestation

Europe Launches New Regulation

Europe Launches New Regulation to Tackle Deforestation! The European Union has introduced an unprecedented set of regulations aimed at curbing deforestation associated with primary production. The EU rules on deforestation-free products, due to come into force in December 2024, mandate that companies ensure their supply chain is deforestation-free.

This new bill targets seven products: livestock, cocoa, coffee, palm oil, soybeans, lumber and rubber. These products have been identified as contributing significantly to global deforestation, and the law seeks to ensure that their production does not further harm forested areas, companies involved in the importation of these products will need to produce them processed or sold in the EU means that their supply does not contribute to deforestation.

Deadlines And Compliance Requirements

Larger businesses must comply until December 2024, while smaller businesses have a grace period through June 2025. To meet the law’s requirements, businesses must conduct due diligence on their supply chain, including exceptions is to get accurate information about where their products home.

The law stipulates that companies must provide accurate soil information on the agricultural land on which their products were grown. This data is essential to ensure that products are deforestation-free. Failure to comply with these requirements may result in substantial sanctions, including fines and restrictions on market access.


To help companies navigate these new requirements, SAP introduced its Green Token software. This new tool uses advanced monitoring capabilities to help companies manage their supply chain and ensure compliance.

The Green Token provides companies with a transparent and reliable way to track th source of their goods and provides a robust solution to comply with stringent EU standards.

The software uses blockchain technology to create digital pairs of physical goods and allows immutable records of their journey from farm to table This ensures that all stages of production are recorded and can ensure that deforestation follows open standards. By adopting such technology, companies can not only comply with regulations but also build consumer trust and enhance their brand reputation as sustainability pioneers.

Impact on the global supply chain

The implementation of this regulation is expected to have a considerable impact on the worldwide deliver chain. Companies will need to invest in new technology and techniques to ensure their products meet deforestation-unfastened EU requirements. While this may incur preliminary charges, the lengthy-time period benefits of sustainable practices and stepped forward market access may additionally outweigh those expenses

Furthermore, the law could affect other industries to undertake comparable strategies, probably leading to a global shift in sustainable production as the EU is a key market for lots of these products, consequently if these new standards are changed, the worldwide deliver chain will want or danger dropping get admission to to European markets.

A step closer to a sustainable future

The EU legislation on woodland-unfastened products represents an important step closer to a greater sustainable destiny. By protecting companies chargeable for their environmental impact, the EU opens the door to extra accountable production.

The law no longer only ambitions to shield the world’s forests but additionally sets a precedent for different markets.

The new EU regulation is a bold move to lessen deforestation and promote sustainability inside the international supply chain. Companies want to embrace those modifications and put in force era answers which includes SAP’s Green Token to make certain compliance and make a contribution to a greener planet.

As the December 2024 deadline strategies, agencies ought to act quick to align their practices with those new requirements and support the EU’s imaginative and prescient for a clearer deforestation destiny.


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