The EU’s deforestation regulation (EUDR), in effect since June 29, 2024, requires the EU Commission to categorize all producer countries or regions as low, standard, or high risk by the end of 2024. Engaging with governments and stakeholders in producer countries during the development of the risk benchmarking system is crucial for trust-building, according to Trase and Proforest’s recently released policy briefing. Their recommendations stress the need for an objective and data-driven framework.
To address deforestation in high-risk areas, Trase and Proforest emphasize the importance of a partnership approach, including governance reforms and support for compliance, with a focus on smallholders and incentives for sustainable production. Creating a fair and effective risk benchmarking system is a complex task given the range of commodities involved, such as beef, cocoa, palm oil, soy, and wood, produced in countries like Brazil, Indonesia, Sweden, and Côte d’Ivoire. Existing global datasets on deforestation are often limited, relying on crude estimates.
Trase and Proforest draw on their experience with the Consumer Goods Forum’s Forest Positive Coalition (CGF-FPC) to devise recommendations for an effective risk benchmarking system. They highlight that commodity deforestation is concentrated in a few countries and regional hotspots. They also recommend the use of subnational risk benchmarking, considering variations in regional deforestation rates, and commodity-specific risk assessment where adequate data is available.
Improving and maintaining up-to-date, globally consistent datasets on commodity deforestation is essential for filling data gaps and supporting risk benchmarking. Trase and Proforest acknowledge the need for more granular data for subnational risk benchmarking, as it may require access to country or region-specific information. Integrating legal compliance and human rights data into the risk benchmarking system is also vital.
In summary, the EU’s deforestation regulation necessitates the establishment of a risk benchmarking system for producer countries or regions. Trase and Proforest emphasize trust-building through engagement with stakeholders, while advocating for an objective and data-driven framework. They highlight the need for a partnership approach in addressing deforestation in high-risk areas and stress the significance of reliable and comprehensive datasets for effective risk assessment. Integrating legal compliance and human rights aspects into the system is also essential.
