Page 66 - 92 EN

C

Why and How EUDR Will Affect Coffee

Since coffee is one of the commodities that is men-
tioned in the regulation, companies and organizations that
import coffee into the European Union, have to make sure
of the following:

· Prove that the coffee that is being sourced does
not come from an origin place, estate, region that is a
result of deforestation specifically since the 2020. Which
is basically getting to prove the ultimate level of trace-
ability , almost being able to pinpoint exactly where the
coffee was grown
· Not only do they have to refuse coffee that is grown
in a deforested land (post 2020), which would be relatively
cheaper, the traders who would buy coffee from different
places and blend and sell It on the international market,
would now be “unsellable” or “unbuyable” for the European
Union importers cause it will not certify the exact origin
place the coffee “in subject of the purchase”, so resulting in
higher price of coffee through the chain.
· Although the rules apply on green coffee that is im-
ported into the EU, but it is exempted from “Soluble Coffee”.

According to the World Resources Institute, there
was a global loss of 4.1 million hectares of tropical pri-
mary or mature category forests in 2022. To put this into
perspective, it’s equivalent to losing approximately 11
soccer fields of forest every minute, which is staggering.
Considering this, the regulations appear to be heading in
the right direction.
However, the challenge lies in whom this regulation
affects, as this will determine the reactions. Importers
who fail to meet the new rules may face a fine of up to 4%
of their annual revenue bloc. The law also mandates that
9% of shipments originating from countries deemed high
risk, 3% from nations labeled as standard risk, and 1%
from countries classified as low risk.
Although the regulation came into force on June 29, imately 10% of the world’s forests, an area larger than the · Reduce the footprint of EU Consumption and The top countries for deforestation in 2022 by
2023, operators and traders will have 18 months to im- European Union combined, have been lost due to deforesta- encourage the consumption of products that are not from hectares cleared as per the World Resources Institute
plement the new rules, meaning that the real effects will tion in the last 30 years—this is incredibly concerning. a deforestation originated supply chain. are as follows:
be seen by the end of 2024. The provision also specifies The rapid pace of this loss has immense social, eco- · Work with partners and producers (countries) to
that small and micro-enterprises will have a longer period nomic, and environmental impacts, both locally and reduce the stress on forests. 1.Brazil
to adapt, with further details provided. globally. The biodiversity damage caused by such forest · Strengthen international co-operation to stop/ 2. Democratic Republic of Congo
But for now, let’s delve into what exactly the EUDR entails. loss is significant, and the most daunting aspect is that if reduce deforestation and forest degradation and on the 3. Bolivia
the current rate continues, the damage may become ir- contrary encourage forest restoration. 4. Indonesia
What Is the EUDR Exactly? reparable. The European Union (EU) has undertaken the · Contribute financial support towards places to 5. Peru
responsibility to help combat this issue. In 2019, the EU encourage more sustainable land use practices. 6. Colombia
In the general consensus of most sensible individuals, communicated its commitment to stepping up action to · Support the availability and quality of informa- 7. Laos
it is understood that deforestation and forest degradation protect and restore the world’s forests and improve the tion and details on forests and supply chain of the prod- 8. Cameroon
pose the greatest threats to forests, which are disappearing health of existing ones. According to their website, their ucts/commodities, and specifically access of such infor- 9. Papua New Guinea
worldwide at an alarming rate. It is estimated that approx- objectives have five main priorities: mation and support research and innovation. 10. Malaysia

66 67