Activities of Nicolae ŞTEFĂNUȚĂ related to 2021/0366(COD)
Plenary speeches (1)
Deforestation Regulation (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010
Amendments (148)
Amendment 100 #
Proposal for a regulation
Title
Title
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems and repealing Regulation (EU) No 995/2010 (Text with EEA relevance)
Amendment 101 #
Proposal for a regulation
Recital 1
Recital 1
(1) Forests provide a broad variety of environmental, economic and social benefits, including timber and non-wood forest products and environmental services essential for humankind, as they harbour most of the Earth’s terrestrial biodiversity. They maintain ecosystem functions, help protect the climate system, provide clean air and play a vital role for the purification of waters and soils as well as for water retention. In addition, forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people, including indigenous peoples and local communities who heavily depend on forest ecosystems18. Furthermore, deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to human. Deforestation, forest degradation and the conversion and degradation of other ecosystems also increase contacts between wild animals and farmed animals and humans, thereby increasing the likelihood of new diseases spreading and the risks of new epidemics and pandemics. __________________ 18 Commission Communication of 27 July 2019 ’Stepping up EU Action to Protect and Restore the World’s Forests’, COM(2019) 352 final.
Amendment 102 #
Proposal for a regulation
Recital 1
Recital 1
(1) Forests provide a broad variety of environmental, economic and social benefits, including timber and non-wood forest products and environmental services essential for humankind, as they harbour most of the Earth’s terrestrial biodiversity. They maintain ecosystem functions, regulate and help protect the climate system, provide clean air and play a vital role for the purification of waters and soils as well as for water retention and recharge. Large forest areas act as a moisture source and help prevent desertification of continental regions. In addition, forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people, including indigenous peoples and local communities who heavily depend on forest ecosystems.18 Furthermore, deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans. __________________ 18 Commission Communication of 27 July 2019 ’Stepping up EU Action to Protect and Restore the World’s Forests’, COM(2019) 352 final.
Amendment 108 #
Proposal for a regulation
Recital 4
Recital 4
(4) Climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change, they are inextricably linked, as recent studies have confirmed. Biodiversity helps mitigate climate change. Insects, birds and mammals act as pollinators, seed dispersers and can help store carbon more efficiently, directly or indirectly. Forests and other ecosystems also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities, including indigenous peoples. Drastically reducing deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation.
Amendment 110 #
Proposal for a regulation
Recital 4
Recital 4
(4) Climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change, they are inextricably linked, as recent studies have confirmed. Biodiversity helps mitigate climate changeand ecosystems are fundamental to climate resilient development1a. Insects, birds and mammals act as pollinators, seed dispersers and can help store carbon more efficiently, directly or indirectly. Forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities, including indigenous peoples. Drastically reducing deforestation and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation. __________________ 1a IPCC Report-Summary for policy makers, February 2022 https://report.ipcc.ch/ar6wg2/pdf/IPCC_A R6_WGII_SummaryForPolicymakers.pdf
Amendment 113 #
Proposal for a regulation
Recital 5
Recital 5
(5) Biodiversity is essential for the resilience of ecosystems and their services both on local and global level. Over half of the global gross domestic product depends on nature and the services it provides. Three major economic sectors – construction, agriculture, food and drink – all highly depend on nature. Biodiversity loss threatens sustainable water cycles and our food systems, putting our food security and nutrition at risk. More than 75% of global food crop types rely on animal pollination. Further, several industrial sectors rely on genetic diversity, and ecosystem services present in complex, naturally- regenerating forests with sustained complex symbiotic relationships, as critical inputs for production, notably for medicines, including antimicrobials.
Amendment 115 #
Proposal for a regulation
Recital 6
Recital 6
(6) Climate change, biodiversity loss and, deforestation and the conversion of other ecosystems are concerns of the highest global importance, affecting the survival of humanity and sustained living conditions on Earth. The acceleration of climate change, biodiversity loss and environmental degradation, paired with tangible examples of their devastating effects on nature, human living conditions and local economies, have led to the recognition of the green transition as the defining objective of our time and a matter of gender equality and of intergenerational equity.
Amendment 116 #
Proposal for a regulation
Recital 7
Recital 7
(7) Union consumption is a considerable driver of deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems on a global scale. The initiative’s Impact Assessment estimated that without an appropriate regulatory intervention EU consumption and production of the sixeight commodities included in the scope (wood, cattle, soy, palm oil, cocoa and, coffee, maize and rubber) will rise to approximately 248,000 hectares of deforestation annually by 2030.
Amendment 124 #
Proposal for a regulation
Recital 12
Recital 12
(12) Combatting deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems constitutes an important part of the package of measures needed to reduce greenhouse gas emissions and to comply with the Union's commitment under the European Green Deal as well as with the 2015 Paris Agreement on Climate Change33, and with the legally binding commitment under the EU Climate Law to reach climate neutrality by 2050 and reduce greenhouse gas emissions by at least 55 % below 1990 levels by 2030. __________________ 33 Ratified by the EU on 5 October 2016, and entered into force on 4 November 2016.
Amendment 126 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) Primary forests are unique and irreplaceable. Plantation forests and planted forests are less biodiverse and protect the environment less well than primary and natural forests; it is therefore appropriate to distinguish clearly between different types of forests in connection with the implementation of this Regulation.
Amendment 127 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) Combatting deforestation, forest degradation and the conversion and degradation of other ecosystems also requires consumer awareness of healthier consumption patterns having a smaller environmental footprint.
Amendment 128 #
Proposal for a regulation
Recital 13 b (new)
Recital 13 b (new)
(13b) Plant proteins for feeding livestock contribute greatly to deforestation and the conversion of other ecosystems worldwide; deforestation and the conversion of other ecosystems can be countered in particular by reducing the Union’s dependence on imported plant proteins and promoting locally and sustainably sourced plant proteins. The achievement of the objectives of this Regulation must be accompanied by an increase in protein autonomy and the implementation of a Union strategy on plant proteins.
Amendment 130 #
Proposal for a regulation
Recital 14
Recital 14
(14) The Union imported and consumed one third of the globally traded agricultural products associated with deforestation between 1990 and 2008. Over that period, Union consumption was responsible for 10% of worldwide deforestation associated with the production of goods or services. Even if the relative share of EU consumption is decreasing, EU consumption is a disproportionally large driver of deforestation. The Union should therefore take action to minimise global deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems driven by its consumption of certain commodities and products and thereby seek to reduce its contribution to greenhouse gas emissions and global biodiversity loss as well as promote sustainable production and consumption patterns in the Union and globally. To have the greatest impact, Union policy should aim at influencing the global market, not only supply chains to the Union. Partnerships and efficient international cooperation with producer and consumer countries are fundamental in that respect.
Amendment 132 #
Proposal for a regulation
Recital 15
Recital 15
(15) Halting deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems is an essential part of the SDGs. This Regulation should contribute in particular to meeting the goals regarding life on land (SDG 15), climate action (SDG 13), responsible consumption and production (SDG 12), zero hunger (SDG 2) and good health and well-being (SDG 3). The relevant target 15.2 to halt deforestation by 2020 has not been met, underlining the urgency of ambitious and effective action.
Amendment 142 #
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19a) In order to ensure consistency with the Union’s commitments under the Paris Agreement, which calls for the protection of forests in order to contribute to the fight against climate change, and in the context of the review of the Union’s trade policy, sustainable forest management should be strengthened in trade agreements negotiated by the Union. Robust clauses on deforestation, forest degradation and the conversion and degradation of other ecosystems should be included where relevant in the negotiating mandates, and sustainability benchmarks for relevant raw materials should be included as part of negotiations on the granting of new trade preferences. The issue of deforestation, forest degradation and the conversion and degradation of other ecosystems should be strengthened in the implementation or in the review of the ‘trade and sustainable development’ chapters, with a differentiated approach being adopted that takes into account the development levels and economic situations of our trade partners.
Amendment 144 #
Proposal for a regulation
Recital 21
Recital 21
(21) TIn coordination with the Member States, the Commission should continue to work in partnership with producer countries, and more generally in cooperation with international organisations and bodies, and should be reinforcing its support and incentives with regard to protecting forests and other ecosystems and the transition to deforestation-free production, acknowledging the role of indigenous people, improving governance and land tenure, increasing law enforcement and promoting sustainable forest management, ecotourism, climate-resilient agriculture, sustainable intensification and diversification, agro- ecology and agroforestry. In doing so it should acknowledgThe Commission should cooperate with producer countries so that they can develop national strategies for the sustainability of their relevant sectors and fully recognise the role of indigenous people in protecting forests and other ecosystems. Building upon the experience and lessons learned in the context of the already existing initiatives, the Union and the Member States should work in partnership with producer countries, upon their request, to exploit the multi- functionalities of forest and other ecosystems, support them in the transition to sustainable forest management of forests and other ecosystems, and address global challenges while meeting local needs and paying attention to the challenges faced by smallholders in line with the Communication to Stepping up Action to Protect and Restore the World’s Forests. The partnership approach should help producer countries in protecting, restoring and sustainably using forests and other ecosystems, hence contributing to the objective of this Regulation to reduce deforestation and forest degradation. , forest degradation and the conversion and degradation of other ecosystems.
Amendment 148 #
Proposal for a regulation
Recital 21
Recital 21
(21) The Commission should continue to work in partnership with producer countries, and more generally in cooperation with international organisations and bodies, and should be reinforcing its support and incentives with regard to protecting forests and transition to deforestation-free production, acknowledging the role of indigenous people, improving governance and land tenure, increasing law enforcement and promoting enhanced sustainable forest management based on indicators and thresholds, climate-resilient agriculture, sustainable intensification and diversification, agro- ecology and agroforestry. In doing so it should acknowledge the role of indigenous people in protecting forests and the know how of local communities. Building upon the experience and lessons learned in the context of the already existing initiatives, the Union and the Member States should work in partnership with producer countries, upon their request, to exploit the multi-functionalities of forest, support them in the transition to sustainable forest management, and address global challenges while meeting local needs and paying attention to the challenges faced by smallholders in line with the Communication to Stepping up Action to Protect and Restore the World’s Forests. The partnership approach should help producer countries in protecting, restoring and sustainably using forest, hence contributing to the objective of this Regulation to reduce deforestation and forest degradation, including through the use of digital technologies and geospatial information.
Amendment 150 #
Proposal for a regulation
Recital 21 a (new)
Recital 21 a (new)
(21a) Smallholders should receive fair remuneration for their production and should not be penalised by this Regulation by having to bear costs relating to the traceability requirement and the transition to sustainable farming practices. These costs should be fairly distributed throughout the value chain. The Commission should therefore carry out an assessment, as soon as possible after the entry into force of this Regulation, of the specific needs in terms of technical and financial assistance and capacity enhancement for smallholders to comply with the new rules.
Amendment 151 #
Proposal for a regulation
Recital 22
Recital 22
(22) Another important action announced in the Communication is the establishment of the EU Observatory on deforestation, forest degradation, changes in the world’s forest cover and associated drivers (“EU Observatory”) launched by the Commission in order to better monitor changes in the world’s forest cover and related drivers. Moreover, building on already existing monitoring tools, including Copernicus products, the EU Observatory will facilitate access to information on supply chains for public entities, consumers and business, providing easy-to-understand data and information linking deforestation, forest degradation, and changes in the world’s forest cover to EU demand/trade for commodities and products. The EU Observatory will thus directly support the implementation of this Regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. The EU Observatory should have stable and sufficient resources and should participate in the establishment of a rapid alert system for operators, traders, civil society and competent authorities where the forest cover analysis reveals deforestation or forest degradation activity. In order to facilitate the implementation of this Regulation, the Commission should also examine how the EU Observatory can contribute to the analysis of relevant legislation in producer countries, including tenure rights and the procedural right to give free, prior and informed consent. The EU Observatory will cooperate closely with relevant international organisations, civil society organisations, research institutes, and third countries. It will also cooperate with the competent authorities of the Member States with a view to centralising the data and the results of the controls which they carry out on the spot. As part of the review of this Regulation, the Commission should examine how the EU Observatory could also be tasked with monitoring changes in other natural carbon-rich and biodiversity-rich ecosystems covered by this Regulation.
Amendment 158 #
Proposal for a regulation
Recital 25
Recital 25
(25) The impact assessment of possible policy measures to address Union-driven deforestation and forest degradation, Council conclusions and the 2020 resolution of the European Parliament clearly identify the need to establish deforestation and forest degradation as the guiding criteria for future Union measures. Focusing only on legality could potentially encourage race to the bottom in countries highly dependent on agricultural exports that may be tempted to lower their environmental protection with a view to facilitating the access of their products to the Union market. Therefore, the new Union legal framework should address both legality and, whether the production of relevant commodities and products is deforestation-free and whether the protection of tenure rights of indigenous and local populations has been maintained.
Amendment 162 #
Proposal for a regulation
Recital 26
Recital 26
(26) The definition of “deforestation- free” should be sufficiently broad to cover both deforestation and forest degradation, ias well as the conversion and degradation of other ecosystems. It should provide legal clarity, and it should be measurable based on quantitative, objective and internationally recognised data.
Amendment 163 #
Proposal for a regulation
Recital 27
Recital 27
(27) The Regulation should cover those commodities whose Union consumption is the most relevant in terms of driving global deforestation and forest degradation as well as the conversion and degradation of other ecosystems and for which a Union policy intervention could bring highest benefits per unit value of trade. An extensive review of scientific literature, namely of primary sources estimating the impact of EU consumption on global deforestation and linking that footprint to specific commodities, was carried out as a part of the study supporting the Impact Assessment and cross-checked via extensive consultation with stakeholders. That process delivered a first list of eight commodities. Wood was directly included in the scope as it was already covered by the EUTR. The list of the commodities was then further reduced via an efficiency analysis in the Impact Assessment. This efficiency analysis compared the hectares of deforestation linked to EU consumption, as estimated in a recent research paper44, for each of those commodities with their average value of EU imports. According to the research paper used for the efficiency analysis, sixthe eight commodities analysed represent the largest sharemore than 95% of EU-driven deforestation among the total of eight commodities analysed in that research paper: palm oil (33,95%), soy (32,83%), wood (8,62%), cocoa (7,54%), coffee (7,01%) and beef (5,01%). __________________ 44 Pendrill F., Persson U. M., Kastner, T. 2020.
Amendment 168 #
Proposal for a regulation
Recital 27 a (new)
Recital 27 a (new)
(27a) Financial institutions should be covered by this Regulation as their services could lead to support activities linked directly or indirectly to deforestation and forest degradation. All banking, investment and insurance activities of financial institutions should therefore be included in the scope of this Regulation in order to prevent them to support projects directly or indirectly linked to deforestation or forest degradation.
Amendment 170 #
Proposal for a regulation
Recital 29
Recital 29
(29) Obligations concerning relevant commodities and products should be laid down by this Regulation in order to effectively combat deforestation, forest degradation and the conversion and degradation of other ecosystems, and to promote deforestation- free supply chains.
Amendment 172 #
Proposal for a regulation
Recital 30
Recital 30
(30) Many international organisations and bodies (e.g. Food and Agriculture Organization of the United Nations, the Intergovernmental Panel on Climate Change, United Nations Environment Programme, the Paris Agreement, International Union for the Conservation of Nature, Convention on Biological Diversity) have developed work in the field of deforestation and forest degradation as well as the conversion and degradation of other ecosystems and the definitions in this Regulation build on this work.
Amendment 175 #
Proposal for a regulation
Recital 32
Recital 32
(32) To strengthen the Union’s contribution to halting deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems, and to ensure that commodities and products from supply chains related to deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems are not placed on the Union market, relevant commodities and products should not be placed or made available on the Union market, nor exported from the Union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production and with international human rights law, including the right to prior, free and informed consent. To confirm that this is the case, they should always be accompanied by a due diligence statement.
Amendment 180 #
Proposal for a regulation
Recital 33
Recital 33
(33) On the basis of a systemic approach, operators should take the appropriate steps in order to ascertain that the relevant commodities and products that they intend to place on the Union market comply with the deforestation-free and legality requirements of this Regulation. To that end, operators should establish and implement due diligence procedures. The due diligence procedure required by this Regulation should include three elements: information requirements, risk assessment and risk mitigation measures. The due diligence procedures should be designed to provide access to information about the sources and suppliers of the commodities and products being placed on the Union market, including information demonstrating that the absence of deforestation and forest degradation and legality requirements are fulfilled, inter alia by identifying the country and area of production, including geo-location coordinates of relevant plots of landfor point and polygon features of relevant plots of land and coastline areas, which will allow for the zoning of the growing areas. These geo-location coordinates that rely on timing, positioning and/or Earth observation could make use of space data and services delivered under the Union’s Space programme (EGNOS/Galileo and Copernicus). The application of the geolocation requirement in sectors where smallholders represent a significant share of producers could be particularly challenging and guidance, technical and financial support should be provided where relevant. On the basis of this information, operators should carry out a risk assessment. Where a risk is identified, operators should mitigate such risk to achieve no or negligible risk. Only after completing the required steps of the due diligence procedure and concluding that no or negligible risk exists that the relevant commodity or product is not compliant with this Regulation, should the operator be allowed to place the relevant commodity or product on the Union market or to export it.
Amendment 181 #
Proposal for a regulation
Recital 33
Recital 33
(33) On the basis of a systemic approach, operators should take the appropriate steps in order to ascertain that the relevant commodities and products that they intend to place on the Union market comply with the deforestation-free and legality requirements of this Regulation. To that end, operators should establish and implement due diligence procedures. The due diligence procedure required by this Regulation should include three elements: information requirements, risk assessment and risk mitigation measures. The due diligence procedures should be designed to provide access to information about the sources and suppliers of the commodities and products being placed on the Union market, including information demonstrating that requirements relating to the absence of deforestation and forest degradation and, forest degradation and conversion and degradation of other ecosystems are fulfilled, and that the country of production has complied with the legality requirements are fulfillednd with international human rights law, including the right to prior, free and informed consent, inter alia by identifying the country and area of production, including geo-location coordinates of relevant plots of land. These geo-location coordinates that rely on timing, positioning and/or Earth observation could make use of space data and services delivered under the Union’s Space programme (EGNOS/Galileo and Copernicus). On the basis of this information, operators should carry out a risk assessment. Where a risk is identified, operators should mitigate such risk to achieve no or negligible risk. Only after completing the required steps of the due diligence procedure and concluding that no or negligible risk exists that the relevant commodity or product is not compliant with this Regulation, should the operator be allowed to place the relevant commodity or product on the Union market or to export it.
Amendment 184 #
Proposal for a regulation
Recital 33 a (new)
Recital 33 a (new)
(33a) Operators and traders and the competent authorities of the Member States should be able to benefit from the tools made available by the Union when collecting and retranscribing the information required for the due diligence procedure. The agencies in charge of EGNOS/Galileo and Copernicus should strengthen their synergies in order to allow for a holistic approach. Operators and traders, in cooperation with the Commission, should support farmers, particularly smallholders, indigenous peoples and local communities, so that they can procure and make appropriate use of the necessary tools to collect information, including geo-location, and to take ownership of them in a sustainable manner.
Amendment 190 #
Proposal for a regulation
Recital 35
Recital 35
(35) In order to recognise good practice, cCertification or other third party verified schemes could be used in the risk assessment procedure, however, they should not in any way substitute the operator’s responsibility as regards due diligenceto conduct due diligence regardless whether the material carries a certification claim.
Amendment 191 #
Proposal for a regulation
Recital 35
Recital 35
(35) In order to recognise good practice, certification or other third party verified schemes could be used in the risk assessment procedure, however, they should notunder no circumstances substitute the operator’s responsibility as regards due diligence.
Amendment 195 #
Proposal for a regulation
Recital 38 a (new)
Recital 38 a (new)
(38a) There is a direct link between deforestation and the conversion of ecosystems and violations of human rights, in particular those of indigenous peoples and local communities. Special attention should be paid to their needs and their full inclusion in the implementation of this Regulation should be promoted. Full respect for international texts and standards, including ILO Convention No 160 on Indigenous and Tribal Peoples, the right to free, prior and informed consent (FPIC) as described by the FAO, and the United Nations Declaration on the Rights of Indigenous Peoples should also be promoted.
Amendment 196 #
Proposal for a regulation
Recital 40
Recital 40
(40) Responsibility for enforcing this Regulation should lie with the Member States, and their competent authorities should be required to ensure that this Regulation is fully complied with. A uniform enforcement of this Regulation as regards relevant commodities and products entering or leaving the Union market can only be achieved through systematic exchange of information and cooperation amongst competent authorities, customs authorities and the Commission. The Commission should, in particular, carry out an analysis of the sanctions applied by the Member States and conduct an exchange with them in order to promote harmonised implementation of this Regulation.
Amendment 201 #
Proposal for a regulation
Recital 41
Recital 41
(41) The effective and efficient implementation and enforcement of this Regulation are essential to achieving its goals. To this end, the Commission should set up and manage an information system to support the operators and the competent authorities in presenting and accessing the necessary information on relevant commodities and products placed on the market. The operators should submit the due diligence statements to the information system. The information system should be accessible to competent authorities and customs authorities to facilitate fulfilling their obligations under this Regulation. The information system should also be accessible for a wider public, with the anonymised data provided in an open and machine-readable format in line with the Union’s Open Data Policy. For transparency purposes, the list of contravening operators shall be made public and not be anonymised.
Amendment 202 #
Proposal for a regulation
Recital 41
Recital 41
(41) The effective and efficient implementation and enforcement of this Regulation are essential to achieving its goals. To this end, the Commission should set up and manage an information system to support the operators and the competent authorities in presenting and accessing the necessary information on relevant commodities and products placed on the market. The operators should submit the due diligence statements to the information system. The information system should be accessible to competent authorities and customs authorities to facilitate fulfilling their obligations under this Regulation. The information system should also be accessible for a wider public, with the anonymised datadata being anonymised – apart from information concerning the European list of non-compliant operators and traders – and provided in an open and machine- readable format in line with the Union’s Open Data Policy.
Amendment 205 #
Proposal for a regulation
Recital 46
Recital 46
(46) The risk of non-compliant commodities and products being placed on the Union market varies depending on the commodity and product as well as on its country of origin and production. Operators sourcing commodities and products from countries or parts thereof that present a low risk of growing, harvesting or producing relevant commodities in violation of this Regulation should be subject to fewer obligations, thereby reducing compliance costs and administrative burden. Commodities and products from high-risk countries or parts thereof should be subject to enhanced scrutiny by the competent authorities.
Amendment 209 #
Proposal for a regulation
Recital 47
Recital 47
(47) For this reason, the Commission should assess the risk of deforestation and forest degradation risk, forest degradation and conversion and degradation of other ecosystems at a level of a country or parts thereof based on a range of criteria that reflect both quantitative, objective and internationally recognised data, and indications that the countries are actively engaged in fighting deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems. This benchmarking information should make it easier for operators in the Union to exercise due diligence and for competent authorities to monitor and enforce compliance, while also providing an incentive for producer countries to increase the sustainability of their agricultural production systems and reduce their impact on deforestation impactand the conversion of other ecosystems. This should help making supply chains more transparent and sustainable. This benchmarking system should be based on a threewo-tier classification of countries to be regarded as low, standard or high risk. In order to ensure appropriate transparency and clarity, the Commission should in particular make publicly available the data being used for benchmarking, the reasons for the proposed change of classification and the reply of the country concerned. For relevant commodities and products from low risk countries or parts of countries identified as low-risk, operators should be allowed to apply a simplified due diligence, whilst cCompetent authorities should be required to apply enhanced scrutiny on relevant commodities and products from high risk countries or parts of countries identified as high-risk. The Commission should be empowered to adopt implementing measures to establish the countries or parts thereof that present a low or high risk of producing relevant commodities and products that are not compliant with this Regulation. The Commission should intensify the dialogue and cooperation, in particular with countries or regions identified as high risk, in order to support them in the transition towards sustainable supply chains.
Amendment 211 #
Proposal for a regulation
Recital 47 a (new)
Recital 47 a (new)
(47a) The Commission shall publish in the Official Journal of the European Union a list of contravening operators, meant to increase the dissuasive power of the regulation, improve transparency and consumer awareness with no legal consequences. An operator or trader would be placed on the list if a Member State administrative authority or court has imposed final administrative or criminal sanction or penalty for infringing their obligations under this regulation. Member States would inform the Commission without undue delay about any such sanctions or penalties. Upon receipt of such notification the Commission would include the operator or trader concerned on the list without delay and inform him of its inclusion. If, for a certain period after the final administrative or criminal sanction or penalty, no further reports of sanctions or administrative or criminal proceedings concerning alleged contravening activity have been reported by the respective Member State authority, the Commission would remove the operator or trader from the list.
Amendment 216 #
Proposal for a regulation
Recital 49
Recital 49
(49) The checks of operators and traders by competent authorities should cover the due diligence systems and the compliance of the relevant commodities and products with the provisions of this Regulation. The checks should be based on a risk-based plan of checks. The plan should contain risk criteria that enable competent authorities to carry out a risk analysis of the due diligence statements submitted by operators and traders. The risk criteria should take into account the risk of deforestation, forest degradation and conversion and degradation of other ecosystems associated to relevant commodities and products in the country of production, the history of compliance of operators and traders with the obligations of this Regulation and any other relevant information available to competent authorities. The risk analysis of due diligence statements should allow competent authorities the identification of operators, traders and relevant commodities and products to be checked, and should be carried out using electronic data processing techniques in the information system which collects the due diligence statements.
Amendment 217 #
Proposal for a regulation
Recital 49
Recital 49
(49) The checks of operators and traders by competent authorities should cover the due diligence systems and the compliance of the relevant commodities and products with the provisions of this Regulation. The checks should be based on a risk-based plan of checks. The plan should contain risk criteria that enable competent authorities to carry out a risk analysis of the due diligence statements submitted by operators and traders. The risk criteria should take into account the risk of deforestation associated to relevant commodities and products in the country of production, the history of compliance of operators and traders with the obligations of this Regulation, repealed Regulation (EU) No 995/2010 and any other relevant information available to competent authorities. The risk analysis of due diligence statements should allow competent authorities the identification of operators, traders and relevant commodities and products to be checked, and should be carried out using electronic data processing techniques in the information system which collects the due diligence statements.
Amendment 220 #
Proposal for a regulation
Recital 52 a (new)
Recital 52 a (new)
(52a) The Commission should publish the names of operators and traders not in compliance with this Regulation. This could help increase the pressure from consumers and civil society on non- compliant operators and traders to source from supply chains that are free from deforestation, forest degradation and the conversion and degradation of other ecosystems.
Amendment 221 #
Proposal for a regulation
Recital 53
Recital 53
(53) Taking into account the international character of deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems and related trade, competent authorities should cooperate with each other, with customs authorities of the Member States, with the Commission, as well as with the administrative authorities of third countries. Competent authorities should also cooperate with the competent authorities for the supervision and enforcement of other EU legislative instruments that set out due diligence requirements in the value chain with regard to adverse human rights or environmental impacts.
Amendment 223 #
Proposal for a regulation
Recital 53 a (new)
Recital 53 a (new)
(53a) In order to facilitate the access to factual, reliable and updated information on deforestation to operators, Member States authorities, and interested third countries authorities, and to facilitate the compliance of economic operators with the requirements of this Regulation, the Commission should establish a Platform covering the forest areas worldwide, featuring a range of tools to enable all parties to quickly move towards No- Deforestation across supply chains. The Platform should include thematic maps, a land cover map with time series since the cut-off date set by this Regulation, and a range of classes allowing to appreciate landscape composition. The platform should also provide an alert system, relying upon a monthly monitoring of forest cover change, and a range of analyses and user-friendly and secured outputs, depicting how supply chains are linked to deforestation. In order to foster the use of the most accurate and timely information, to develop risk assessment and risk analyses, to improve checks on declarations and countries benchmarking, whilst developing a cooperative approach, the Platform should be made available to all the stakeholders listed above. The Platform should use satellite imagery, including Copernicus Sentinel, which have the capability to provide the factual, reliable and updated information required.
Amendment 224 #
Proposal for a regulation
Recital 54
Recital 54
(54) While tThis Regulation addresses deforestation and forest degradation, as envisaged in the 2019 Communication ’Stepping up EU Action to Protect and Restore the World’s Forests, protecting forests should not lead towell as the conversion orand degradation of other natural ecosystems. Ecosystems such as wetlands, savannahs and peatlands are highly significant to global efforts to combat climate change, as well as other sustainable development goals and their conversion or degradation require particular urgent attention. To address this, the Commission should assess the need and feasibility of extending the scope to other ecosystems and to further commodities two years after the entry into force. At the same time, the Commission should also undertake a review of the relevant products as listed in Annex I of this Regulation by way of a delegated act. These other ecosystems shall be included in the scope of this Regulation in order not to shift the problem of deforestation and forest degradation to these ecosystems. These ecosystems are highly significant to global efforts to combat climate change, as well as to other sustainable development goals, and their conversion or degradation must be prevented.
Amendment 226 #
Proposal for a regulation
Recital 54 a (new)
Recital 54 a (new)
(54a) Two years after the entry into force of this Regulation, the Commission should present an assessment of the need to extend the list of relevant products in Annex I to other relevant commodities or products, as well as to other ecosystems.
Amendment 230 #
Proposal for a regulation
Recital 60
Recital 60
(60) Since the objective of this Regulation, fighting against deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems by reducing the contribution of consumption in the Union, cannot be achieved by the Member States individually and can therefore, by reason of its scale, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.
Amendment 239 #
Proposal for a regulation
Article 1 – paragraph 1 – introductory part
Article 1 – paragraph 1 – introductory part
This Regulation lays down rules regarding the placing and making available on the Union market, as well as the export from the Union market, of cattle, cocoa, coffee, oil palm, soya and wood, wood, maize and rubber (“relevant commodities”) and products, as listed in Annex I, that contain, have been fed with or have been made using relevant commodities (“relevant products”), with a view to
Amendment 246 #
Proposal for a regulation
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
(a) minimising the Union’s contribution to deforestation and forest degradation and to the conversion and degradation of other ecosystems worldwide
Amendment 253 #
Proposal for a regulation
Article 1 – paragraph 1 – point b a (new)
Article 1 – paragraph 1 – point b a (new)
(ba) addressing human rights violations linked to the production of the commodities covered by this Regulation.
Amendment 256 #
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
(1a) This Regulation also lays out obligations for financial institutions headquartered or operating in the Union that provide financial services to natural or legal persons whose economic activities consist, or are linked to, the production, supply, placing on or export from the Union market of the relevant commodities and products as defined in this Article.
Amendment 266 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘'deforestation’' means the conversion of forest to agricultural u, whether human-induced or not, of forest, in particular for agricultural or mining purposes, whether human-induced or noand including conversion of primary or old-growth forest to planted forest or plantation forest;
Amendment 280 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘forest’ means land spanning more than 0,5 hectares with trees higher than 5 meters and a canopy cover of more than 10%, or trees able to reach those thresholds in situ, excluding agricultural plantations and land that is predominantly underunder other use, including agricultural or urban land use;
Amendment 281 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)
Article 2 – paragraph 1 – point 2 a (new)
(2a) 'mangrove forest ' means a highly specialised forested wetland system occupying intertidal zones, adapted to regular inundation by a range of salinities, which is commonly found in the tropical and subtropical coastal and riverine regions of the world;
Amendment 288 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)
Article 2 – paragraph 1 – point 5 a (new)
(5a) ‘other ecosystems’ means land with high carbon stocks and land with a high biodiversity value, such as grasslands, savannahs, peatlands and wetlands; this definition extends to ecosystems managed by humans but having an ecological function, structure and biodiversity comparable to natural ecosystems;
Amendment 292 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘forest degradation’ means harvesting operations that are not sustainable and cause aand other ecosystem degradation’ means the reduction or loss of the biological or economic productivity and complexity of forest ecosystems, resulting in the long-term reduction of the overall supply of benefits from forest, which includes wood, biodiversity and other products or affecting their species composition, structure and/or function, whether or not directly caused by humans; this includes illegal exploitation of forest or other ecosystems as well as the introduction or increase of management practices that result in a substantial or sustained impact in the ecosystem’s health and its capacity to support biodiversity and/or deliver ecosystem services;
Amendment 305 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘forest degradation’ means forest exploitation by harvesting operations that are not sustainable and cause a reduction or loss of the biological or economic productivity and complexity of forest ecosystems, resulting in the long-term reduction of the overall supply of benefits from forest, which includes wood, biodiversity and other products or servicdiversity, in particular of forest specialist species and of structural and genetic complexity of forest ecosystems and impoverish the web of symbiotic relationships between forest species;
Amendment 307 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘forest degradation’ means harvesting operations that are not sustainable and causeand other ecosystem degradation’ means a reduction or loss of the biological or economic productivity and complexity of forest ecosystems, resul affecting in the long-term reduction of the overall supply of benefits from forest, which includes wood, biodiversity and other procomposition of species and the structure and/or function of those forest ecosystems, whether or not the reductsion or servicdisappearances has direct human causes;
Amendment 323 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8 – introductory part
Article 2 – paragraph 1 – point 8 – introductory part
(8) ‘deforestation-free’ means that the relevant commodities and products, including those used for or contained in relevant products, were produced on land that has not been subject to deforestation, forest degradation or the conversion or degradation of other ecosystems after 31 December 2020;
Amendment 326 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8 – point a
Article 2 – paragraph 1 – point 8 – point a
Amendment 332 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8 – point b
Article 2 – paragraph 1 – point 8 – point b
Amendment 342 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
(9) ‘produced’ means grown, farmed, harvested, raised, fed from or obtained on relevant plot of land or coastline area;
Amendment 345 #
Proposal for a regulation
Article 2 – paragraph 1 – point 11 a (new)
Article 2 – paragraph 1 – point 11 a (new)
(11a) ‘right to free, prior and informed consent’ means the right of indigenous peoples and local communities to give and withdraw their consent prior to the establishment of an activity that could affect their rights, land or territories, resources, activities or food security, and to do so through representatives chosen by the local communities or indigenous peoples and in accordance with their norms, customs and values;
Amendment 354 #
Proposal for a regulation
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
(16) ‘negligible risk’ means a full assessment of both the product-specific and the general information on compliance with Articles 3(a), Article 3 (aa) and 3(b) by relevant commodities or products showing no cause for concern;
Amendment 357 #
Proposal for a regulation
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
(18) ‘non-compliant products’ means relevant commodities and products that were not produced in a ‘deforestation-free’ manner, or they were not produced in accordance with international law and standards on tenure rights and the right to Free, Prior and Informed Consent and/or were not produced in accordance with the relevant legislation of the country of production, or both;
Amendment 382 #
Proposal for a regulation
Article 3 – paragraph 1 – point a a (new)
Article 3 – paragraph 1 – point a a (new)
(aa) they have been produced in accordance with international law and standards on tenure rights and the right to Free, Prior and Informed Consent;
Amendment 383 #
Proposal for a regulation
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) they have been produced in accordance with the relevant legislation of the country of production as well as international law on human rights, in particular the rights of indigenous peoples and local communities, including the right to free, prior and informed consent; and
Amendment 389 #
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article 3a Financial institutions shall provide financial services to customers only when they conclude that there is no more than a negligible risk that the services in question may provide support directly or indirectly to activities leading to deforestation and forest degradation.
Amendment 390 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Operators shall exercise due diligence prior to placing relevant commodities and products on or prior to their export from the Union market in order to ensure their compliance with Article 3(a), 3(aa) and (b). To that end, they shall use a framework of procedures and measures, hereinafter referred to as a ‘due diligence’, as set out in Article 8.
Amendment 391 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Operators shall exercise due diligence prior to placing relevant commodities and products on or prior to their export from the Union market in order to ensure their compliance with Article 3(a), (b) and (ba). To that end, they shall use a framework of procedures and measures, hereinafter referred to as a ‘due diligence’, as set out in Article 8.
Amendment 394 #
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
3. By making available the due diligence statement, the operator assumes responsibility for the compliance of the relevant commodity or product with the requirements of this Regulation. Operators shall therefore undertake reasonable, documented efforts to support their suppliers’ compliance, including smallholders, with the provisions and requirements set out in this Regulation. They shall keep record of the due diligence statements for 5 years from the date of making available via the information system referred to in Article 31.
Amendment 395 #
Proposal for a regulation
Article 4 – paragraph 5 – point a
Article 4 – paragraph 5 – point a
(a) the relevant commodities and products are not compliant with Article 3(a), (b) or (ba);
Amendment 396 #
Proposal for a regulation
Article 4 – paragraph 5 – point a
Article 4 – paragraph 5 – point a
(a) the relevant commodities and products are not compliant with Article 3(a), 3(aa) or (b);
Amendment 397 #
Proposal for a regulation
Article 4 – paragraph 5 – point b
Article 4 – paragraph 5 – point b
(b) the exercise of due diligence has revealed a non-negligible risk that the relevant commodities and products are not compliant with Article 3(a), (b) or (ba);
Amendment 398 #
Proposal for a regulation
Article 4 – paragraph 5 – point b
Article 4 – paragraph 5 – point b
(b) the exercise of due diligence has revealed a non-negligible risk that the relevant commodities and products are not compliant with Article 3(a), 3(aa) or (b);
Amendment 401 #
Proposal for a regulation
Article 4 – paragraph 6
Article 4 – paragraph 6
6. Operators that have received new information, including substantiated concerns, or information provided via the rapid alert mechanism, that the relevant commodity or product that they have already placed on the market is notat risk of not being in conformity with the requirements of this Regulation shall immediately inform the competent authorities of the Member States in which they placed the relevant commodity or product on the market. In the case of exports from the Union market, the operators shall inform the competent authority of Member State which is the country of production.
Amendment 405 #
Proposal for a regulation
Article 4 – paragraph 7 a (new)
Article 4 – paragraph 7 a (new)
7a. Operators shall take the necessary measures: (a) to consult broadly and without delay with the stakeholders potentially impacted by this Regulation, in particular those that are most vulnerable; and (b) to provide adequate assistance and fair remuneration to their suppliers, in particular small operators, so that they can comply with the rules, in particular with regard to the geolocation requirement, and to ensure that the costs resulting from the implementation of this Regulation are fairly shared among the different actors in the value chain.
Amendment 445 #
Proposal for a regulation
Article 9 – paragraph 1 – point d
Article 9 – paragraph 1 – point d
(d) geo-localisation coordinates, latitude and longitude of all plots of land and coastline where the relevant commodities and products were produced, as well as date or time range of production;
Amendment 449 #
Proposal for a regulation
Article 9 – paragraph 1 – point g
Article 9 – paragraph 1 – point g
(g) adequate and verifiable information that the relevant commodities and products are deforestation-free including clear indication that the area characterised by the respective latitude and longitude coordinates falls within a polygon that zones a growing area fulfilling the conditions listed under Article 3(a);
Amendment 452 #
Proposal for a regulation
Article 9 – paragraph 1 – point h
Article 9 – paragraph 1 – point h
(h) adequate and verifiable information that the production has been conducted in accordance with relevant legislation of the country of production, including any arrangement conferring the right to use the respective area for the purposes of the production of the relevant commoditythe legal status of land (ownership/title including both formal and customary rights of indigenous peoples and local communities to lands, territories and resources) and evidence of free, prior and informed consent;
Amendment 453 #
Proposal for a regulation
Article 9 – paragraph 1 – point h
Article 9 – paragraph 1 – point h
(h) adequate and verifiable information that the production has been conducted in accordance with relevant legislation of the country of production, including anyternational law and standards on tenure rights and the right to free, prior and informed Consent, and any other arrangement conferring the right to use the respective area for the purposes of the production of the relevant commodity;
Amendment 457 #
Proposal for a regulation
Article 9 – paragraph 1 – point h a (new)
Article 9 – paragraph 1 – point h a (new)
(ha) information on the working conditions of the people who were responsible for the harvesting, processing and treatment of the relevant commodities and products and the conditions under which those activities took place, for the purpose of verifying compliance with the human rights obligations of this Regulation;
Amendment 462 #
Proposal for a regulation
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Financial institutions shall collect the information, documents and data demonstrating that the provision of financial services to customers complies with Article 11a. These shall include, at least: (a) description of the customer’s economic activities, of the activities of entities controlled by the customer, of the economic activities of the customers’ suppliers; (b) information on the relevant commodities and products placed on, made available on or exported from the Union’s market and on the related exercise of due diligence under this Regulation; (c) use, for the activities under (a) of relevant commodities and products, including information on the relevant commodities and products effectively used and on the related exercise of due diligence under this Regulation; (d) policies adopted, and implemented by the customer and by the entities and suppliers referred to under (a) in view of ensuring that their activities do not cause deforestation and forest degradation; (e) identification of the country of production and geo-localisation coordinates, latitude and longitude of all plots of land where the relevant commodities and products is to be produced;
Amendment 469 #
Proposal for a regulation
Article 9 – paragraph 3
Article 9 – paragraph 3
3. The Commission may adopt delegated acts in accordance with Article 33 to supplement paragraph 1 and paragraph 1a concerning further relevant information to be obtained that may be necessary to ensure the effectiveness of the due diligence system.
Amendment 470 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Operators and financial institutions shall verify and analyse information collected in accordance with Article 9 and any other relevant documentation, and on this basis carry out a risk assessment to establish whether there is a risk that the relevant commodities and products intended to be placed on or exported from the Union market are non- compliant with the requirements of this Regulation. If the operators cannot demonstrate that the risk of non- compliance is negligible, they shall not place the relevant commodity or product on the Union market nor export it. If the financial institutions cannot conclude that the risk of non-compliance is negligible, they shall not provide financial services to the concerned customers.
Amendment 477 #
Proposal for a regulation
Article 10 – paragraph 2 – point b
Article 10 – paragraph 2 – point b
(b) the presence of forests and other ecosystems in the country and area of production of the relevant commodity or product;
Amendment 483 #
Proposal for a regulation
Article 10 – paragraph 2 – point c
Article 10 – paragraph 2 – point c
(c) prevalence of deforestation or forest degradation, forest degradation or conversion or degradation of other ecosystems in the country, region and area of production of the relevant commodity or product;
Amendment 488 #
Proposal for a regulation
Article 10 – paragraph 2 – point e
Article 10 – paragraph 2 – point e
(e) concerns in relation to the country of production and origin, such as level of corruption, prevalence of document and data falsification, lack of law enforcement, violations of human rights and of the rights of indigenous peoples and local communities, armed conflict or presence of sanctions imposed by the United Nations Security Council or the Council of the European Union;
Amendment 495 #
Proposal for a regulation
Article 10 – paragraph 2 – point i a (new)
Article 10 – paragraph 2 – point i a (new)
(ia) information provided via the rapid alert mechanism;
Amendment 498 #
Proposal for a regulation
Article 10 – paragraph 2 – point j
Article 10 – paragraph 2 – point j
(j) complementary information on compliance with this Regulation, which may include information supplied by certification or other third-party-verified schemes, and in such case shall indicate the statistical risk of the respective mass balance system and the certified content threshold characteristic of the scheme for the concept of ‘deforestation-free’, including voluntary schemes recognised by the Commission under Article 30(5) of Directive (EU) 2018/200149 , provided that the information meets the requirements set out in Article 9; __________________ 49 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328/82, 21.12.2018, p. 82–209).
Amendment 501 #
Proposal for a regulation
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Except where the analysis undertaken in accordance with paragraph 1 allows the operator to ascertain that there is no or negligible risk that the relevant commodities or products are not compliant with the requirements of this Regulation, the operator shall adopt prior to placing the relevant commodities and products on the Union market or to their export risk mitigation procedures and measures that are adequate to reach no or negligible risk. This may include requiring additional information, data or documents, undertaking independent surveys or audits, strengthening the capacities of and providing adequate support to suppliers to modify their practices or other measures pertaining to information requirements set out in Article 9.
Amendment 523 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Unless otherwise provided by other EU legislative instruments that lay down requirements regarding sustainability value chain due diligence, operators which are not SMEs shall, on an annual basis, publicly report as widely as possible, including on the internet, on their due diligence system including on the steps taken by them to implement their obligations as set out in Article 8 and the necessary measures set out in Article 4(7a). Operators falling also within the scope of other EU legislative instruments that lay down requirements regarding value chain due diligence may fulfil their reporting obligations under this paragraph by including the required information when reporting in the context of other EU legislative instruments.
Amendment 530 #
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11a Obligations of financial institutions 1. In view of complying with Article 3, financial institutions shall exercise due diligence prior to providing financial services to customers whose economic activities consist, or are linked to, the trading or placing on the market of commodities and products defined in Article 1 and Annex I. 2. The due diligence shall include: (a) the collection of information and documents, as referred to in Article 9(a), needed to fulfil the requirement set out in paragraph 1; (b) risk assessment and mitigation measures as described in Article 10; 3. Financial institutions shall not provide financial services to customers without prior submission of a due diligence statement to the competent authorities; 4. For customers with whom they have established an ongoing business relationship before the date of entry into force of this Regulation, financial institutions shall complete the relevant due diligence within one year from the date in question.
Amendment 531 #
Proposal for a regulation
Article 11 b (new)
Article 11 b (new)
Article 11b 1. Financial institutions shall verify and analyse information collected in accordance with Article 9(1a) and any other relevant documentation, and on this basis carry out a risk assessment to establish whether there is a risk that the provision of financial services to a customer may not comply with Article 12a(1). If the financial institutions cannot demonstrate that the risk of non- compliance is negligible, they shall not provide financial services to the customer at issue.
Amendment 532 #
Proposal for a regulation
Article 12
Article 12
Amendment 569 #
Proposal for a regulation
Article 13 – paragraph 7 a (new)
Article 13 – paragraph 7 a (new)
7a. Competent authorities shall monitor the compliance of financial institutions with the requirements of this Regulation.
Amendment 573 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. To carry out the checks referred to in paragraph 1, the competent authorities shall establish a plan based on a risk-based approach. The plan shall contain at least risk criteria to carry out the risk analysis under paragraph 4 and thereby inform the decisions on checks. In establishing and reviewing the risk criteria, the competent authorities shall take into account in particular the assignment of risk to countries or parts thereof in accordance with Article 27, the history of compliance of an operator or trader with this Regulation and any other relevant information. Based on the results of the checks and the experience on implementation of the plans, the competent authorities shall review those plans and risk criteria on a regular basis in order to improve their effectiveness. When reviewing the plans, the competent authorities shallmay establish a reduced frequency of checks for those operators and traders who have shown a consistent record of full compliance with the requirements under this Regulation.
Amendment 585 #
Proposal for a regulation
Article 14 – paragraph 11
Article 14 – paragraph 11
11. Without prejudice to the checks under paragraphs 5 and 6, competent authorities shall conduct checks referred to in paragraph 1 when they are in possession of evidence or other relevant information, including based on the rapid alert mechanism or on substantiated concerns provided by third parties under Article 29, concerning potential non-compliance with this Regulation.
Amendment 591 #
Proposal for a regulation
Article 14 – paragraph 13
Article 14 – paragraph 13
13. The competent authorities shall keep records of the checks indicating in particular their nature and results, as well as on the measures taken in case of non- compliance. Records of all checks shall be kept for at least 510 years.
Amendment 596 #
Proposal for a regulation
Article 15 – paragraph 1 – point c a (new)
Article 15 – paragraph 1 – point c a (new)
(ca) the use of any technical and scientific means to determine whether the relevant commodity or product is ‘deforestation free’, including Earth observation data such as that obtained from the Copernicus programme and tools;
Amendment 604 #
Proposal for a regulation
Article 15 – paragraph 1 – point g
Article 15 – paragraph 1 – point g
Amendment 616 #
Proposal for a regulation
Article 18 – paragraph -1 (new)
Article 18 – paragraph -1 (new)
-1. Without prejudice to the obligation of operators to exercise due diligence as provided for in Article 8 and in order to provide assistance to operators and competent authorities in checking the legality requirement referred to in Article 3(b), the Commission shall draw up a non-exhaustive list of relevant legislation in producer countries in consultation with them and any other relevant stakeholders, in particular indigenous peoples and local communities.
Amendment 617 #
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Competent authorities shall cooperate with each other, with authorities from other Member States, with the Commission, and, if necessary, with administrative authorities of third countries in order to ensure compliance with this Regulation, including as regards the implementation of field audits.
Amendment 618 #
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. Competent authorities shall exchange information necessary for the enforcement of this Regulation. This shall include giving access to and exchange of data on operators and traders including due diligence statements, the nature and results of the controls carried out and any sanctions imposed with other Member States’ competent authorities to facilitate the enforcement of this Regulation.
Amendment 621 #
Proposal for a regulation
Article 18 – paragraph 5
Article 18 – paragraph 5
5. At the request of a competent authority, Member States shall provide to it, without undue delay, the necessary information to ensure compliance with this Regulation.
Amendment 623 #
Proposal for a regulation
Article 18 a (new)
Article 18 a (new)
Article 18a Satellite imagery and access to forest data The Commission shall establish a Platform using satellite imagery, including Copernicus Sentinel, covering the forest areas worldwide, and featuring tools to enable all parties to quickly move towards no-deforestation across supply chains. The platform shall provide: (a) thematic maps, including a land cover map with time series since the cut- off date defined in Article 2 (8) and a range of classes allowing to appreciate landscape composition, (b) an alert system, relying upon a monthly monitoring of forest cover change, (c) a range of analyses and user- friendly and secured outputs, depicting how supply chains are linked to deforestation. The Platform shall be made available to Member State authorities, interested third countries’ authorities, operators and traders.
Amendment 626 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Member States shall make available to the public and the Commission, at the latest by 30 April of each year, information on the application of this Regulation during the previous calendar year. This information shall include their plans for checks, the number and the results of the controls carried out on operators and traders, including the contents of these checks, the volume of relevant commodities and products checked in relation to the total quantity of relevant commodities and products placed on the market, the countries of origin and of production of relevant commodities and products as well as the measures taken in case of non-compliance, including the sanctions imposed, and the costs of controls recovered.
Amendment 628 #
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The Commission services shall make publicly available, on an annual basis, a Union-wide overview of the application of this Regulation based on the data submitted by the Member States under paragraph 1. Where appropriate, and in order to promote the effective implementation of this Regulation, the Commission shall make recommendations with a view to encouraging the harmonisation of sanctions between Member States.
Amendment 641 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
Where relevant commodities or products were produced in a country or part thereof listed as high risk in accordance with Article 27, or there is a risk of relevant commodities or products produced in such countries or parts thereof entering the relevant supply chain, each Member State shall ensure that the annual checks carried out by their competent authorities cover at least 1520% of the operators placing, making available on or exporting from the Union market each of the relevant commodities on their market as well as 1520% of the quantity of each of the relevant commodities placed or made available on or exported from their market from high risk countries or parts thereof.
Amendment 644 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
Where, following the checks referred to in Article 15 and 16, possible serious shortcomings have been detected, or risks have been identified pursuant to Article 14(6), the competent authorities may take immediate interim measures, including seizure or suspension of the placing or making available on and exporting from the Union market of the relevant commodities and products. Member States shall inform the Commission and the competent authorities of other Member States about such measures directly.
Amendment 649 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. Without prejudice to Article 23, where competent authorities establish that an operator or trader has not complied with its obligations under this Regulation or that a relevant commodity or product is not compliant with this Regulation, they shall without delay require the relevant operator or trader to take appropriate and proportionate corrective action to bring the non-compliance to an end as soon as possible.
Amendment 655 #
Proposal for a regulation
Article 22 – paragraph 2 – point d
Article 22 – paragraph 2 – point d
(d) destroyonating the relevant commodity or product or donating it to charitable or public interest purposes.
Amendment 658 #
Proposal for a regulation
Article 22 – paragraph 2 – point d a (new)
Article 22 – paragraph 2 – point d a (new)
(da) rectifying flaws in the exercise of due diligence in order to prevent possible future infractions.
Amendment 670 #
Proposal for a regulation
Article 23 – paragraph 2 – point a
Article 23 – paragraph 2 – point a
(a) fines proportionate to the environmental damage and the value of the relevant commodities or products concerned, calculating the level of such fines in such way as to make sure that they effectively deprive those responsible of the economic benefits derived from their infringements, and gradually increasing the level of such fines for repeated infringements; the maximum amount of such fines shall be at least 4 15% of the operators or trader’s annual turnover in the Member State or Member States concerned and can be increased to ensure that the penalty exceeds the potential economic advantage gained;
Amendment 680 #
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
Article 23 – paragraph 2 – point d a (new)
(da) restoration of the ecosystem to its previous condition if applicable, in accordance with [the forthcoming a Directive of the European Parliament and of the Council on the protection of the environment through criminal law and replacing Directive 2008/99/EC];
Amendment 681 #
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
Article 23 – paragraph 2 – point d a (new)
(da) in the case of serious or repeated violations, suspension or withdrawal of the right to submit due diligence statements;
Amendment 688 #
Proposal for a regulation
Article 23 – paragraph 2 a (new)
Article 23 – paragraph 2 a (new)
2a. Where the deforestation or degradation has been committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment, the act shall be recognised as ecocide. Each Member State shall take the necessary measures to establish its jurisdiction over the offence of ecocide. A Member State shall inform the Commission where it decides to extend its jurisdiction to the offence referred to in the previous subparagraph which has been committed outside its territory where the offence is committed for the benefit of a legal person established on its territory.
Amendment 690 #
Proposal for a regulation
Article 23 – paragraph 2 a (new)
Article 23 – paragraph 2 a (new)
2a. Without prejudice to the obligations under Directive 2008/99/EC, Member States shall apply criminal sanctions in the case of serious or repeated violations of this Regulation.
Amendment 693 #
Proposal for a regulation
Article 23 a (new)
Article 23 a (new)
Article 23a Establishment of a European list of non- compliant operators and traders 1. The Commission shall draw up a list of operators and traders who have failed to fulfil their obligations under this Regulation. An operator or trader shall be included on that list if an administrative authority or a court of a Member State has imposed on it, in accordance with Article 23 of this Regulation, sanctions which are final. 2. Member States shall notify the Commission without delay of any final administrative or criminal sanction or penalty imposed on an operator or trader for failure to comply with its obligations under this Regulation. 3. Upon receipt of such notification the Commission shall, without delay, include the operator or trader concerned on the list and inform the operator and trader concerned of its inclusion, and update the information system (‘Register’) referred to in Article 31. 4. Member States shall establish more frequent checks on operators and traders on the list, including at least one check within two years of their inclusion on the list.
Amendment 694 #
Proposal for a regulation
Article 23 b (new)
Article 23 b (new)
Article 23b Removal from the European list of non- compliant operators and traders The Commission shall remove an operator or trader from the list of non- compliant operators and traders referred to in Article 23a two years after the last administrative or criminal sanction or penalty, provided no other administrative or criminal sanction or procedure concerning an alleged infringement has been reported. The Commission shall, without undue delay, notify the competent authorities of the removal of an operator or trader from the list and update the information system (‘Register’) referred to in Article 31.
Amendment 695 #
Proposal for a regulation
Article 23 c (new)
Article 23 c (new)
Amendment 708 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. The Commission shall develop an electronic interface based on the EU Single Window Environment for Customs to enable the transmission of data, in particular the notifications and requests referred to in Article 24, paragraphs 5 to 8, between national customs systems and the information system referred to in Article 31. This electronic interface shall be in place at the latest fourone years from the date of adoption of the relevant implementing act referred to in paragraph 3.
Amendment 711 #
Proposal for a regulation
Article 26 – paragraph 2 – introductory part
Article 26 – paragraph 2 – introductory part
2. The Commission mayshall develop an electronic interface based on the EU Single Window Environment for Customs to enable:
Amendment 720 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. This Regulation establishes a threewo- tier system for the assessment of countries or parts thereof. Unless identified in accordance with this Article as presenting a low or high risk, countries shall be considered as presenting a standard risk. The Commission may identify countries or parts thereof that present a low or high risk of producing relevant commodities or products that are not compliant with Article 3, point (a). The list of the countries or parts thereof that present a low or high risk shall be published by means of implementing act(s) to be adopted in accordance with the examination procedure referred to in Article 34(2). That list shall be updated as necessary in light of new evidence.
Amendment 724 #
Proposal for a regulation
Article 27 – paragraph 2 – introductory part
Article 27 – paragraph 2 – introductory part
2. The identification of low and high risk countries or parts thereof pursuant to paragraph 1 shall take into account information provided by the country concerned and by other stakeholders, such as civil society, including indigenous peoples and local communities, and be based on the following assessment criteria:
Amendment 731 #
Proposal for a regulation
Article 27 – paragraph 2 – point a
Article 27 – paragraph 2 – point a
(a) rate of deforestation and forest, forest degradation and ecosystem conversion and degradation,
Amendment 741 #
Proposal for a regulation
Article 27 – paragraph 2 – point d
Article 27 – paragraph 2 – point d
(d) whether the nationally determined contribution (NDC) to the United Nations Framework Convention on Climate Change covers emissions and removals from agriculture, forestry and land use which ensures that emissions from deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems are accounted towards the country's commitment to reduce or limit greenhouse gas emissions as specified in the NDC;
Amendment 744 #
Proposal for a regulation
Article 27 – paragraph 2 – point e
Article 27 – paragraph 2 – point e
(e) agreements and other instruments concluded between the country concerned and the Union that address deforestation or forest degradation, forest degradation and the conversion and degradation of other ecosystems and facilitates compliance of relevant commodities and products with the requirements of this Regulation and their effective implementation;
Amendment 759 #
Proposal for a regulation
Article 27 – paragraph 3 – subparagraph 2 – point c
Article 27 – paragraph 3 – subparagraph 2 – point c
(c) the consequences of its identification as a high or low risk country.
Amendment 762 #
Proposal for a regulation
Article 27 – paragraph 4 a (new)
Article 27 – paragraph 4 a (new)
4a. Where a country is placed in the higher risk category, the Commission shall propose that the country engage in sustained dialogue and cooperation, in accordance with Article 28, in order to develop an ongoing partnership aimed at creating the necessary conditions for that country to be able to return to the standard risk category.
Amendment 765 #
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
1. The CommissionIn a coordinated approach, the Commission and the Member States shall engage with producer countries concerned by this Regulation to develop partnerships and cooperation to jointly address deforestation and forest degradation. Such partnerships and cooperation mechanisms, forest degradation and the conversion and degradation of other ecosystems, as well as the human rights violations linked to these phenomena. Such partnerships and cooperation mechanisms shall prioritise countries in the higher risk category pursuant to Article 27 and will focus on the conservation, restoration and sustainable use of forests, deforestation, forest degradation and the conversion and degradation of other ecosystems, and the transition to sustainable commodity production, consumption, processing and trade methods and, where appropriate, the development of ecotourism based on sustainable management of forests and other biodiversity-rich ecosystems. Partnerships and cooperation mechanisms may include structured dialogues, adequate support programmes and actions, administrative arrangements and provisions in existing agreements or agreements that enable producer countries to make the transition to an agricultural production that facilitates the compliance of relevant commodities and products with the requirements of this regulation. Partnerships and cooperation mechanisms shall pay particular attention to smallholders in order to enable them to transition to sustainable farming practices and to comply with the requirements of this Regulation. In the context of programming under the Global Europe instrument, adequate financial resources must be available to help meet the support needs of smallholders. Such agreements and their effective implementation will be taken into account as part of the benchmarking under Article 27 of this Regulation.
Amendment 776 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. Partnerships and cooperation shall promote the development of integrated land use planning processes, relevant legislations, fiscalincluding tenure rights and the procedural right to give or withhold free, prior and informed consent, fiscal or trade incentives and other pertinent tools to improve forest, other ecosystem and biodiversity conservation, sustainable management and restoration of forests, tackle the conversion of forests and vulnerable ecosystems to other land uses, optimise gains for the landscape, tenure security, agriculture productivity and competitiveness, transparent supply chains, strengthen the rights of forest or other ecosystem dependent communities including smallholders, indigenous peoples and local communities, and ensure public access to forest management documents and other relevant information.
Amendment 779 #
Proposal for a regulation
Article 28 – paragraph 4
Article 28 – paragraph 4
4. The Commission shall engage in international bilateral and multilateral discussion on policies and actions to halt deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems, including in multilateral fora such as Convention on Biological Diversity, Food and Agriculture Organization of the United Nations, United Nations Convention to Combat Desertification, United Nations Environment Assembly, United Nations Forum on Forests, United Nations Framework Convention on Climate Change, World Trade Organisation, G7 and G20. Such engagement shall include the promotion of the transition to sustainable agricultural production and sustainable forest and other ecosystems management as well as the development of transparent and sustainable supply chains as well as continue efforts towards identifying and agreeing robust standards and definitions that ensure a high level of protection of forest and other ecosystems.
Amendment 790 #
Proposal for a regulation
Article 29 – paragraph 2
Article 29 – paragraph 2
2. Competent authorities shall, without undue delay, diligently and impartially assess the substantiated concerns and take the necessary steps, including checks and hearings of operators and traders, with a view to detecting potential breaches of the provisions of this Regulation and, where appropriate, interim measures under Article 21 to prevent the placing making available on and export from the Union market of relevant commodities and products under investigation.
Amendment 793 #
Proposal for a regulation
Article 29 – paragraph 3
Article 29 – paragraph 3
3. The competent authority shall, as soon as possible and no later than 30 days from the receipt of the substantiated concern and in accordance with the relevant provisions of national law, inform the natural or legal persons referred to in paragraph 1, which submitted observations to the authority, of its decision to accede to or refuse the request for action and shall provide the reasons for it.
Amendment 802 #
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. Any natural or legal personMember States shall ensure that, in accordance with their national laws, members of the public who havinge a sufficient interest, including those having submitted substantiated concern in accordance with Article 29, shall have access to a court or other independent and impartial public body competent to review the procedural and substantiveor who claim the impairment of a right where administrative procedural law of a Member State requires such a right to be a precondition, have access to a review procedure before a court of law or other independent and impartial body established by law with a view to challenging the substantive or procedural legality of the decisions, acts or failure to act of the competent authority underomissions taken in order to achieve compliance with this Regulation.
Amendment 803 #
Proposal for a regulation
Article 30 – paragraph 1 a (new)
Article 30 – paragraph 1 a (new)
1a. Member States shall determine the stage at which decisions, acts or omissions may be challenged.
Amendment 804 #
Proposal for a regulation
Article 30 – paragraph 1 b (new)
Article 30 – paragraph 1 b (new)
1b. Member States shall determine what constitutes a sufficient interest and impairment of a right, consistent with the objective of giving the public wide access to justice. To that end, natural and legal persons having submitted a substantiated concern in accordance with Article 29 and non-governmental organisations promoting environmental protection and meeting any requirements under national law shall be deemed as having a sufficient interest or having rights capable of being impaired for the purpose of paragraph 1 of this Article.
Amendment 815 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. The Commission shall establish and maintain, by the date established in Article 36(2), an information system (“Register”) which shall contain the due diligence statements made available pursuant to Article 4(2) and the European list of non- compliant operators and traders referred to in Article 23b.
Amendment 817 #
Proposal for a regulation
Article 31 – paragraph 2 – point c
Article 31 – paragraph 2 – point c
(c) registration of the outcome of controls on due diligence statements and the sanctions imposed;
Amendment 818 #
Proposal for a regulation
Article 31 – paragraph 2 – point e
Article 31 – paragraph 2 – point e
(e) registration of the European list of non-compliant operators and traders and allow the risk profiling of operators, traders and relevant commodities and products for the purpose of identifying high risk consignments according to the risk analysis in Article 14(4);
Amendment 823 #
Proposal for a regulation
Article 31 – paragraph 5
Article 31 – paragraph 5
5. IWithout prejudice to the provisions laid down in Articles 23a, 23b and 23c on the European list of non-compliant operators and traders and in line with the EU’s Open Data Policy, and in particular the Directive (EU) 2019/102451 , the Commission shall provide access to the wider public to the complete anonymised datasets of the information system in an open format that can be machine-readable and that ensures interoperability, re-use and accessibility. __________________ 51 Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56–83).
Amendment 827 #
Proposal for a regulation
Article 31 a (new)
Article 31 a (new)
Amendment 831 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. No later than two years after the entry into force, the Commission shall carry out a first review of this Regulation, and shall present a report to the European Parliament and the Council accompanied, if appropriate, by a legislative proposal. The report shall focus in particular on an evaluation of the need and the feasibility of extending the scope of this Regulation to other ecosystems, including land with high carbon stocks and land with a high biodiversity value such as grasslands, peatlands and wetlands and further commoditiesas well as on proposals for additional support measures for farmers, in particular smallholders, indigenous peoples and local communities on the basis of the impact assessment and continuous assessment carried out under Article 31a.
Amendment 832 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. No later than two years after the entry into force, the Commission shall carry out a first review of this Regulation, and shall present a report to the European Parliament and the Council accompanied, if appropriate, by a legislative proposal. The report shall focus in particular on an evaluation of the need and the feasibility of extending the scope of this Regulation to ofurther ecosystems, including land with high carbon stocks and land with a high biodiversity value such as grasslands, peatlands and wetlands and further commoditiemmodities and the impact of the Regulation on farmers, in particular smallholders, foresters, indigenous peoples and local communities and the possible need for additional support for the transition to sustainable supply chains.
Amendment 842 #
Proposal for a regulation
Article 32 – paragraph 2 – point a
Article 32 – paragraph 2 – point a
Amendment 847 #
Proposal for a regulation
Article 32 – paragraph 2 – point a (new)
Article 32 – paragraph 2 – point a (new)
(aa) sanctions imposed by Member States and the need for and feasibility of encouraging harmonisation between Member States in order to ensure more effective implementation of the Regulation
Amendment 848 #
Proposal for a regulation
Article 32 – paragraph 2 – point b
Article 32 – paragraph 2 – point b
Amendment 856 #
Proposal for a regulation
Article 32 – paragraph 3
Article 32 – paragraph 3
3. Without prejudice to the general review under paragraph 1, a first review of Annex I shall be carried out by the Commission no later than two years after the entry into force of this Regulation, and thereafter at regular intervals in order to assess whether it is appropriate to amend or extend the relevant products listed in Annex I in order to ensure that all products that contain, have been fed with or have been made using relevant commodities are included in that list, unless the demand for those products has a negligible effect on deforestation, forest degradation and the conversion and degradation of other ecosystems. The reviews shall be based on an assessment of the effect of the relevant commodities and products on deforestation and forest degradation, forest degradation and the conversion and degradation of other ecosystems, and take into account changes in consumption, as indicated by scientific evidence.