Europe-Brazil ECCON Newsletter – Volume 1, August 2024
In this first volume of the Europe-Brazil ECCON Newsletter, we will analyze the implications of the European Deforestation Regulation Nr. 995/2010 (EUDR) on Brazilian Biomes and agroeconomics.
Context
The EUDR is a significant legislative measure that intends to prevent deforestation by regulating the market within the EU regarding the trade of relevant products – that contain, have been fed with, or have been made using relevant commodities – of cattle, cocoa, coffee, oil palm, rubber, soya, and wood (1st article EUDR).
Brazil has several key biomes, including the Amazon Rainforest, Cerrado, Atlantic Forest, Caatinga, Pantanal, and Pampa, each with unique characteristics and ecological significance.
According to EUDR (second article), 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 land that is predominantly under agricultural or urban land use”.
In this definition, many savanna and grassland environments are included (such as ecosystems in Caatinga, Cerrado, Pantanal, and Pampa) in the definition of forest. The first major implication of this interpretation is that these environments, due to their low or absence of forest cover, end up being interpreted as degraded forests that need restoration to be recovered. Consequently, some environmental practices aimed at restoration in these biomes are inadequate, leading to further degradation.
The second major issue is that natural areas with coverage below 10% fall outside the definition of forest, directly affecting their conservation importance. The law does not encompass a large part of Brazilian biomes due to the definition of forest used in the European regulation, the same used by the Food and Agriculture Organization (FAO). This may leave 70% of the Pantanal and Cerrado areas, as well as more than 90% of the Caatinga, outside the definition.
Impact on Brazilian Biomes
The Brazilian biomes that can be considered as forests under the EUDR are the Amazon Rainforest, the largest tropical rainforest in the world, and the Atlantic Forest, a biodiversity hotspot in Brazil. In contrast, the Cerrado, Caatinga, Pampa, and Pantanal, covering 50.70% of the country’s territory, would be excluded.
The main criticism of the new European regulation is the exclusion of other ecosystems, which could lead to increasing deforestation in these biomes. By focusing exclusively on forests and not including Other Wooded Lands, the regulation might have the opposite effect of its original intention in Brazil, especially since the greatest pressure to expand the agricultural frontier occurs in the Cerrado.
The EUDR’s failure to consider other biomes may incentivize farmers and companies to exploit areas not covered by the regulation, leading to deforestation of these regions for commodity production purposes.
According to the introductory statement no. 82 of the EUDR, ecosystems such as wetlands, savannahs, and peatlands are of great importance in global efforts to combat climate change and the biodiversity crisis, as well as in other sustainable development goals (SDGs). The conversion or degradation of these ecosystems requires urgent and specific actions to prevent such impacts.
Therefore, although the EUDR currently excludes some Brazilian ecosystems, the idea of transferring monocultures to these areas as an alternative to maintaining “business as usual”, and avoiding the rules provided by the EUDR is not considered a safe choice. Considering the impact of the European Union on non-forest natural ecosystems, the Commission shall assess and, where appropriate, present a legislative proposal to extend the scope of this Regulation to Other Wooded Lands no later than one year after it enters into force.
Furthermore, no later than two years after this effective date, the Commission shall evaluate and, where appropriate, present a legislative proposal to extend the scope of this regulation to other natural ecosystems, including lands with high carbon stocks and high biodiversity value, such as grasslands, peatlands, and wetlands.
Responsibilities
Without the inclusion of Other Wooded Lands, the EUDR may inadvertently encourage deforestation in unprotected biomes as agricultural expansion continues. Therefore, while the regulation aims to prevent deforestation, its current scope could undermine its effectiveness in Brazil, if no further regulation on this regard is provided in the future.
Brazil must also enable the conservation of its biomes and forest, mainly because the existence of such forests is necessary to the continuity of the agrobusiness activities, as they depend on water, biodiversity and all the environmental services provided by nature.
Forests provide countless environmental services that directly impact the health of crops, such as regulating temperature, preventing erosion, serving as habitats for pollinators, and regulating air temperature and humidity.
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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Yuri Rugai Marinho
Julia Lenzi
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