Europe-Brazil ECCON Newsletter – Volume 2, September 2024
In this volume of the Europe-Brazil ECCON Letter, we will analyze European environmental policies and their sustainability goals, focusing on the European Deforestation Regulation Nr. 995/2010 (EUDR).
Context
The European Union (EU) has a history of seeking ambitious environmental sustainability goals. Since the introduction of the Common Agricultural Policy (CAP) in 1962, the EU has been trying to induce sustainable agriculture and provided subsidies to empower farmers with a stable income.
In this context, the European Green Deal, launched in December 2019, outlines a roadmap for the next three decades, with the primary goal of making Europe the first climate-neutral continent by 2050. The agreement establishes 50 measures covering various sectors, including the “Farm to Fork” strategy, which aims to transform food systems to make them more “fair, healthy and ecological” through stricter guidelines for agricultural production. As part of this effort, the CAP was reformulated to contribute significantly to the Green Deal´s sustainability ambitions.
Challenges in Implementation
However, implementing these policies has proven challenging. The CAP is often criticized as one of the EU’s most controversial policies, with the main concerns being the allocation and distribution of resources among the farmers, whose incomes often fall below the EU average. Between 2022 and 2024, the EU witnessed successive waves of protests led by farmers, which intensified in 2024, reflecting dissatisfaction with the restrictions on agricultural production and concerns about the future of this economic sector in Europe.
Protesters argue that EU policies undermine fairness, making them less competitive compared to their counterparts in other parts of the world. As a result, they demand the continuation of subsidies for food production, emphasizing the need for greater financial support to facilitate the transition to more sustainable agriculture.
A significant barrier to the consistent growth in productivity across the EU’s Member States is the lack of a clear and comprehensive policy to promote innovation within the CAP. This gap in agricultural policy prevents farmers from fully realizing their productive potential. Large subsidies can distort markets and may even encourage environmentally harmful practices, neglecting investments in technology and productivity improvements, which limits their long-term growth.
In this regard, the “European Union Deforestation Regulation” (EUDR) has emerged as a new policy aimed at preventing the entry of products linked to deforestation and forest degradation into the European market. The commodities most associated with these activities are beef cattle, cocoa, coffee, palm oil, soy, rubber, and wood, as well as its derivates. European importers must also guarantee that the products are free of deforestation, whether legal or illegal, that occurred after December 31, 2020.
The EUDR
The history of the EUDR reflects the EU’s growing concern with global forest preservation, aligning with the bloc’s climate and biodiversity commitments. This proposal is a milestone in European trade policy, placing environmental sustainability at the heart of trade practices. However, it also generates additional tensions, particularly in sectors reliant on imported agricultural commodities. Balancing environmental protection with the economic viability of producers, both within and outside the bloc, remains a critical challenge for the effective implementation of these policies.
It is important to highlight that this regulation impacts compliance not only for EU member states that export commodities within Europe but also for every country outside the bloc that sells to the EU. This is followed by the decision of the bloc to abandon plans to reduce pesticide use by 50% and remove the agricultural sector from the strict timetable, in February 2024. Such move has raised concerns about the EU’s environmental coherence, considering that the bloc is, simultaneously, reducing its domestic environmental obligations and imposing strict regulations on imported products.
Despite its efforts, it appears that the EU is not reaching the necessary steps to become a climate-neutral continent. In part, to achieve this goal, the EU seems to be shifting its responsibility onto third parties, particularly developing countries that export commodities to the bloc.
This double standard raises questions about the EU’s genuine commitment to environmental sustainability. By relaxing its internal regulations while tightening the restrictions on external trade partners, the EU risks being perceived as shifting the burden of environmental stewardship onto developing nations.
These countries, often already facing significant challenges in balancing economic growth with environmental protection and climate change, are now forced to comply with stringent EU regulations that may not be reciprocated by the bloc itself, and that will go into force regardless of other nations’ objections.
Moreover, this approach could exacerbate existing inequalities in global trade, where developing countries might struggle to meet the new standards without the necessary infrastructure or financial support. Instead of fostering global cooperation on environmental issues, the EU’s current stance could lead to increased tensions. For the EU to truly lead on climate action, it must ensure that its policies are not only fair and consistent but also provide support to those who are being asked to meet these higher standards.
The technical team at ECCON has experience on EUDR rules and may assist you on fulfilling your export obligations. For more information, visit our website or contact us at: contato@ecconsa.com.br.
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Julia Maillet Rocha Lenzi
Mariana Sanches Saú
Yuri Rugai Marinho
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