InfoSAWIT, JAKARTA - In the past decade, many countries in the world tried to minimize deforestation. The concrete things applied are by publishing moratorium, escalating supply chain transparency to maintain the froest conservation. But European Union (EU) reported that the forest degradation and deforestation still happen in a concerning level that contributed more than 10% of green-house gas emission globally.
As the response, by the late of 2022, EU Commission published European Union Deforestation Regulation (EUDR). It would deliver time until the early of 2025 before it fully implements. Nevertheless, the policy would not be immediately implemented for the business owners (micro, small, medium business/MSMB) in the continent. EUDR would be effective by June 2024 or half year slower than other countries.
The regulation would cover seven high – risky commodities, they are, wood, soybean, palm oil, coffee, chocolate, beef, and rubber, and the derivative products, such as, chocolate, feather, and paper. Every company in these sectors is banned to put their products to EU unless if they could prove that theirs had nothing to do with deforestation.
EUDR does not directly deliver impact for the smallholders because in general they do not directly trade their products to EU without having partners with big companies. But the impacts (for smallholders) would be existing. When EU implements/restricts the companies/industries, the smallholders would get the impacts because their products (fresh fruit bunch/FFB) would not be accepted in EU.
In this country, EUDR terms and condition are used by palm oil companies to make smallholders’ FFB namely the independent ones, cheaper because they have nothing to do with the mill directly. This happens because their products are not traceable. That is why the clear regulation would be very significant to regulate palm oil plantation governance and reinforce palm oil commerce. The regulation would be about to confirm smallholders’ traceability and inclusivity in EU supply chain.
The question remains, how about this condition? How would the stakeholders confirm the policy in order not to deliver the bad for independent smallholders? These issues could be read in Focus, June 2024. (T2)
