Due Diligence Requirements to Tackle Deforestation: An overview of the EU and British proposals

This research paper by the International Institute for Sustainable Development (IISD) analyzes proposed trade-related legislation from the European Union and the United Kingdom designed to reduce commodity-driven deforestation and forest degradation through mandatory due diligence requirements.

• The European Commission's proposal for a regulation on deforestation-free products aims to ensure that only commodities and products that are deforestation-free, produced according to the laws of the producing country, and covered by a due diligence statement can be available in or exported from the EU common market.
• The EU proposal defines 'relevant commodities' as cattle, cocoa, coffee, palm oil, soya, and wood, as well as any products derived from them. It establishes a cutoff date of December 31, 2020, meaning goods produced on land deforested after this date cannot enter or exit the EU.
• The EU's proposed due diligence system is tiered and mandatory for operators and non-SME traders, involving three steps: gathering information, assessing risk, and mitigating risk to a negligible level. This is linked to a benchmarking system that categorizes countries as low-risk, standard, or high-risk to determine the level of due diligence required.
• The European Commission estimates that the proposed regulation could annually save at least 32 million tonnes of CO2 and at least 71,920 hectares of forest.
• The UK Environment Act 2021 establishes a framework prohibiting regulated persons from using 'forest risk commodities' or derived products in commercial activities unless they comply with relevant local laws.
• The UK legislation introduces a mandatory due diligence system requiring regulated persons to identify commodity information, assess risk of non-compliance with local laws, and mitigate that risk. However, many specifics, including the list of commodities and enforcement details, are to be determined by secondary regulations from the secretary of state.
• The UK's proposed enforcement regime may include criminal offences and civil sanctions, with a proposed maximum penalty of GBP 250,000.
• The authors identify several challenges for these policies, including potential conflicts with World Trade Organization (WTO) rules, the risk of companies transferring the due diligence burden to smallholder farmers with less technical capacity, and the potential for 'spillover' and 'patchwork' effects that increase administrative burdens for developing countries.

APA

Oeschger, A., & Sarmiento, F. (2022). Due Diligence Requirements to Tackle Deforestation: An overview of the EU and British proposals. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/deforestation-overview-eu-british-proposals

Chicago

Oeschger, Andreas, and Florencia Sarmiento. Due Diligence Requirements to Tackle Deforestation: An overview of the EU and British proposals. International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/policy-analysis/deforestation-overview-eu-british-proposals.

Wikipedia

{{cite report |last1=Oeschger |first1=Andreas |last2=Sarmiento |first2=Florencia |title=Due Diligence Requirements to Tackle Deforestation: An overview of the EU and British proposals |publisher=International Institute for Sustainable Development |date=7 June 2022 |url=https://www.iisd.org/articles/policy-analysis/deforestation-overview-eu-british-proposals |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{oeschger2022due, author = {Oeschger, Andreas and Sarmiento, Florencia}, title = {{Due Diligence Requirements to Tackle Deforestation: An overview of the EU and British proposals}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = jun, url = {https://www.iisd.org/articles/policy-analysis/deforestation-overview-eu-british-proposals}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }