Deforestation rates are on the decline, marking a positive trend deserving of attention, particularly on this International Day of Forests. The UN’s 2023 Forest Resources Assessment reveals a net loss of 47 million hectares of forests from 2013 to 2023, a decrease from the previous decade’s loss of 51 million hectares. While the pace of improvement may seem slow, any progress in this realm is significant.

Efforts in some primary resource-producing countries to combat deforestation are yielding promising outcomes, complemented by regulatory measures in transformation markets. Europe’s ecological transition, driven by citizen environmental concerns, has spurred investments in sustainable production practices, along with the influx of certified sustainable products into our markets.

However, addressing deforestation remains a global imperative. Urgent action is needed in countries like Brazil and the Democratic Republic of Congo, where rampant exploitation of local natural resources persists. Fortunately, we have successful models and regulatory frameworks to emulate.

Consider the remarkable reductions in deforestation rates in Indonesia and Malaysia, down by 67% and 57% respectively between 2015-2017 and 2020-2022 (source: World Resources Institute). In these two emerging economic giants and global leaders in the palm oil industry, success stems from a combination of anti-deforestation policies adopted by local oil palm cultivators and ESG compliance investments by processing companies that receive raw materials in Europe. This collaborative approach has enabled the European Union to enact regulations supportive of sustainable practices, benefiting both the economy and the environment while ensuring consumer satisfaction.

The European Union Deforestation Regulation (EUDR), aims at blocking agricultural raw materials responsible for deforestation practices at the border. Since June 2023, commodities such as livestock products, cocoa, coffee, rubber, timber, soy, and palm oil can enter the European market only if they meet rigorous standards. The EUDR obliges producers to verify that imported or exported commodities do not come from deforested land and that human rights are respected in the countries of origin.

Brussels’ decisive stance outlines a blueprint for responsible supply chain management. Notably, the palm oil industry has taken proactive steps well in advance, with the entire supply chain obtaining Roundtable on Sustainable Palm Oil (RSPO) certification, recognized by the FAO. This sustainable production model has led to a significant reduction in deforestation while facilitating the widespread adoption of certified sustainable palm oil in European markets, with Italy achieving between 93% and 95% compliance.

Despite progress, there’s still a long road ahead. Accelerating the implementation of EUDR and embracing sustainable development across all affected sectors are crucial steps in our ongoing efforts to combat deforestation and preserve our planet’s invaluable forests.

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Read the press release “Competere celebrates International Day of Forests”