The latest legislation in the EU will oblige coffee importers and coffee producers (and a number of other importers and producers) in Norway to prove that their supply chains do not involve deforestation. While this has raised immediate concerns among EU-based coffee producers, the increased emphasis on deforestation has implications for roasters and coffee businesses worldwide.
For consumers, it could mean more expensive coffee, but not if the coffee beans come from sorze4 AS. We have been practicing this legislation before it was decided.
New EU legislation
This regulation is part of the EU's Green Deal, which was presented in 2019 and aims to transform the EU into a fair and prosperous society. The goals are to respond to consumer demand for more sustainable products, reduce the EU's contribution to global deforestation, and encourage partner countries to protect their forests.” The mandatory due diligence rules are relevant to everyone who distributes and sells goods in the EU/EEA market or exports from the EU/EEA.
Products must be deforestation-free, legal in the country where they were produced, and contain a due diligence statement confirming the product's deforestation-free status.
In practice, this means that all coffee must be traceable back to the farm where it was grown. This means that any deforestation on a mapped farm will automatically prevent the product from being imported into the EU/EEA.
Not just for coffee
The regulation on deforestation-free products requires companies registered in EU member states to ensure that wood, palm oil, soya, coffee, cocoa, rubber and cattle they import or export is not produced on land that was deforested after December. 31, 2020
In the plenum on 19 April 2023, the regulation was voted on and approved. “The law will soon be published in the EU's official journal and will come into force 20 days after it is published. According to the typical timeline for EU legislation, the rules will apply to importers and larger businesses 18 months after the law comes into force, and to smaller businesses 24 months later. However, the legislation may apply differently to small and medium-sized operators, although there are still some questions about how these will be defined.
Traceable coffee from sorze4 AS
All coffee beans we have imported from Brazil since 2019 have been traceable to their origin. To the farm where it was grown. We will continue with that, and we will continue to use certifications from the Rainforest Alliance.
The implications of the deforestation regulation for businesses outside the EU/EEA
Although the impact on EU/EEA companies is obvious, this regulation still has two primary effects on companies outside the EU. The regulation will be followed by similar legislation in other regions. With an increasing focus on climate change and on increasing consumer demands for sustainable and ethical goods, it is possible that other countries and regions will soon follow suit. By focusing on deforestation now, businesses will be ready to comply with any new legislation that may arise in the years to come.
Second, while EU companies must comply with these rules now, companies in other regions can benefit from building deforestation-free supply chains. Consumers seek sustainable coffee and show preferences for coffee that meets their standards. Taking steps to source deforestation-free coffee before any laws are in place can bring tangible benefits to your business.
EU: Major Step For 'Deforestation-Free' Trade
Companies Required to Respect Environment, Human Rights in Supply Chain
https://www.hrw.org/news/2023/04/19/eu-major-step-deforestation-free-trade