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EUDR, AgTech and Blockchain to Minimize Environmental Crisis

Doc. InfoSAWIT
EUDR, AgTech and Blockchain to Minimize Environmental Crisis

InfoSAWIT, JAKARTA – Deforestation would be one environmental challenge in the world. Million hectares of forests have been cut off in every year because of illegal logging, agricultural activity, and development. The impacts get wider to climate, natural conservation, and indigenous people. when it is urgent to solve this issue, European Union got initiative by publishing European Union Deforestation Regulation (EUDR).

It obliges every consumer and producer in certain commodity supply chain to get due diligence and risk assessment to confirm that their product(s) did not contribute in deforestation. One sector that would be hit by the regulation is palm oil from Indonesia as the biggest producer in the world. EUDR obliges inspection and penalty in phase based on the risks. Indonesia is taken as the country in high risk.

Founder and chief executive officer (CEO) Dimitra Inc in Nasdaq, Jon Trask said that only 1% smallholders in Indonesia that qualified the regulation. If EUDR is officially applied, many smallholders in Indonesia would loss the market access to EU. The smallholders in southern world, including Indonesia thought that EUDR would put every effort away to maintain the balance between natural conservation and source of living.

But the regulation would potentially create unwanted consequences, such as, deforestation product relocation to the countries that have loose regulation, such as, India and China. This would raise worry about EUDR effectiveness to realize the deforestation mitigation goal in the globe.

In such tension like this, the solution in AgTech and Blockchain – base, offers new hope. Blockchain could be applied to trace the origins of palm oil materials, confirm that the product(s) does not derive from deforestation. While AgTech would escalate agricultural productivity and minimize environmental impacts.

Such technology implementation in every palm oil plantation scale, would start from smallholders until big companies. The technology would deliver potential to solve environmental challenges and contribute for the sustainable future. Through the collaboration among the governments, industries, and technology innovators, there would be holistically solution that support every effort in the globe to face deforestation crisis and realize sustainability. (*)

For further information, please contact InfoSAWIT or DIMITRA