The European Commission proposed a law on Wednesday (17) with the aim of preventing the import of commodities linked to logging, requiring companies to prove that their global supply chains are not contributing to forest destruction.
Failure to comply can result in fines of up to 4% of a company’s turnover in an EU country.
The law proposed by the executive body of the European Union establishes mandatory rules for importers of soy, beef, palm oil, wood, cocoa and coffee, and some by-products, including leather, chocolate and furniture.
Many European companies operate in countries where environmental abuses are common, but currently there is no EU-wide requirement for them to correct any environmental issues in their global supply chains.
Emissions from the land use sector, many of which are caused by deforestation, are the second biggest cause of climate change after the burning of fossil fuels, and world leaders have agreed to COP26 this month on ending deforestation by 2030.
If the law is passed by EU governments and the European Parliament, companies operating in the 27 EU countries will have to show that the specified goods were produced in accordance with the laws of the producing country.
Reference: CNN Brasil
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