REPORT on the proposal for a regulation of the European Parliament and of the Council on making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010

25.7.2022 - (COM(2021)0706 – C9‑0430/2021 – 2021/0366(COD)) - ***I

Committee on the Environment, Public Health and Food Safety
Rapporteur: Christophe Hansen
Rapporteurs for the opinion (*):
Karlsbro Karin, Committee on International Trade
Cavazzini Anna, Committee on Internal Market and Consumer Protection
(*)Associated committees – Rule 57 of the Rules of Procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010

(COM(2021)0706 – C9‑0430/2021 – 2021/0366(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2021)0706),

– having regard to Article 294(2) and Article 192 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0430/2021),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 23 February 2022[1],

– having regard to the opinion of the Committee of the Regions of...[2],

– having regard to Rule 59 of its Rules of Procedure,

– having regard to the opinions of the Committee on International Trade, the Committee on Internal Market and Consumer Protection, the Committee on Development and the Committee on Agriculture and Rural Development

– having regard to the report of the Committee on the Environment, Public Health and Food Safety (A9-0219/2022),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

 

 

Amendment  1

 

Proposal for a regulation

Recital 1

Text proposed by the Commission	Amendment
(1) Forests provide a broad variety of environmental, economic and social benefits, including timber and non-wood forest products and environmental services essential for humankind, as they harbour most of the Earth’s terrestrial biodiversity. They maintain ecosystem functions, help protect the climate system, provide clean air and play a vital role for the purification of waters and soils as well as for water retention. In addition, forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people, including indigenous peoples and local communities who heavily depend on forest ecosystems.18 Furthermore, deforestation and forest degradation reduce essential carbon sinks and increase the likelihood of new diseases spreading from animals to humans.	(1) Forests provide a broad variety of environmental, economic and social benefits, including timber and non-wood forest products and environmental services essential for humankind, as they harbour most of the Earth’s terrestrial biodiversity. They maintain ecosystem functions, help protect the climate system, provide clean air and play a vital role for the purification of waters and soils as well as for water retention and recharge, while more than a quarter of modern medicines are derived from tropical forest plants. Large forest areas act as a moisture source and help prevent desertification of continental regions. In addition, forests provide subsistence and income to about one third of the world’s population and their destruction has serious consequences for the livelihoods of the most vulnerable people, including indigenous peoples and local communities who heavily depend on forest ecosystems.18 Furthermore, deforestation, forest degradation and forest conversion reduce essential carbon sinks. Deforestation, forest degradation and forest conversion also increase contacts between wild animals, farmed animals and humans, thereby increasing the likelihood of new diseases spreading and the risks of new epidemics and pandemics.
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18 Commission Communication of 27 July 2019 ’Stepping up EU Action to Protect and Restore the World’s Forests’, COM(2019) 352 final.	18 Commission Communication of 27 July 2019 ’Stepping up EU Action to Protect and Restore the World’s Forests’, COM(2019) 352 final.

Amendment  2

Proposal for a regulation

Recital 2

Text proposed by the Commission	Amendment
(2) Deforestation and forest degradation are taking place at an alarming rate. The Food and Agriculture Organization of the United Nations estimates that 420 million hectares of forest – about 10% of the world’s remaining forests and an area larger than the European Union – have been lost worldwide between 1990 and 202019. Deforestation and forest degradation are, in turn, important drivers of global warming and biodiversity loss — the two most important environmental challenges of our time. Yet every year the world continues to lose 10 million hectares of forest.	(2) Deforestation, forest degradation and forest conversion are taking place at an alarming rate. The Food and Agriculture Organization of the United Nations estimates that 420 million hectares of forest – about 10% of the world’s remaining forests and an area larger than the European Union – have been lost worldwide between 1990 and 202019. Deforestation, forest degradation and forest conversion are, in turn, important drivers of global warming and biodiversity loss — the two most important environmental challenges of our time. Yet every year the world continues to lose 10 million hectares of forest. Forests are also heavily impacted by climate change, and many challenges will need to be addressed to ensure the adaptability and resilience of forests in the coming decades.
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19 FAO, Global Forest Resource Assessment 2020, p. XII, https://www.fao.org/documents/card/en/c/ca9825en.	19 FAO, Global Forest Resource Assessment 2020, p. XII, https://www.fao.org/documents/card/en/c/ca9825en.

Amendment  3

 

Proposal for a regulation

Recital 3

Text proposed by the Commission	Amendment
(3) Deforestation and forest degradation contribute to the global climate crisis in multiple ways. Most importantly, they increase greenhouse gas emissions through associated forest fires, permanently removing carbon sink capacities, decreasing climate change resilience of the affected area and substantially reducing its biodiversity. Deforestation alone accounts for 11 % of greenhouse gas emissions20 .	(3) Deforestation, forest degradation and forest conversion contribute to the global climate crisis in multiple ways. Most importantly, they increase greenhouse gas emissions through associated forest fires, permanently removing carbon sink capacities, decreasing climate change resilience of the affected area and substantially reducing its biodiversity and resilience to diseases and pests. Deforestation alone accounts for 11 % of greenhouse gas emissions20.
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20 IPCC, Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems, https://www.ipcc.ch/srccl/.	20 IPCC, Climate Change and Land: an IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems, https://www.ipcc.ch/srccl/.

Amendment  4

 

Proposal for a regulation

Recital 4

Text proposed by the Commission	Amendment
(4) Climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change, they are inextricably linked, as recent studies have confirmed. Biodiversity helps mitigate climate change. Insects, birds and mammals act as pollinators, seed dispersers and can help store carbon more efficiently, directly or indirectly. Forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities, including indigenous peoples. Drastically reducing deforestation and forest degradation and systemically restoring forests and other ecosystems is the single largest nature-based opportunity for climate mitigation.	(4) Climate breakdown induces the loss of biodiversity globally and biodiversity loss aggravates climate change, they are inextricably linked, as recent studies have confirmed. Biodiversity and ecosystems are fundamental to climate resilient development1a. Insects, birds and mammals act as pollinators, seed dispersers and can help store carbon more efficiently, directly or indirectly. Forests also ensure a continuous replenishment of water resources and prevention of droughts and their deleterious effects to local communities, including indigenous peoples. Drastically reducing deforestation, forest degradation and forest conversion and systemically restoring forests and other ecosystems the single largest nature-based opportunity for climate mitigation.
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	1a IPCC Report-Summary for policy makers, February 2022 https://report.ipcc.ch/ar6wg2/pdf/IPCC_AR6_WGII_SummaryForPolicymakers.pdf

Amendment  5

 

Proposal for a regulation

Recital 5

Text proposed by the Commission	Amendment
(5) Biodiversity is essential for the resilience of ecosystems and their services both on local and global level. Over half of the global gross domestic product depends on nature and the services it provides. Three major economic sectors – construction, agriculture, food and drink – all highly depend on nature. Biodiversity loss threatens sustainable water cycles and our food systems, putting our food security and nutrition at risk. More than 75% of global food crop types rely on animal pollination. Further, several industrial sectors rely on genetic diversity and ecosystem services as critical inputs for production, notably for medicines.	(5) Biodiversity is essential for the resilience of ecosystems and their services both on local and global level. Over half of the global gross domestic product depends on nature and the services it provides. Three major economic sectors – construction, agriculture, food and drink – all highly depend on nature. Biodiversity loss threatens sustainable water cycles and our food systems, putting our food security and nutrition at risk. More than 75% of global food crop types rely on animal pollination. Further, several industrial sectors rely on genetic diversity, and ecosystem services present in complex, naturally regenerating forests with sustained complex symbiotic relationships, as critical inputs for production, notably for medicines, including antimicrobials. Furthermore, transpiration, the process by which trees take water from the ground and release it into the atmosphere from their leaves, is a major source of water to the atmosphere, and is estimated to be responsible for around half of all precipitation. Deforestation therefore heavily influences the rainfall regime and the natural regulation of water flows, both within forests but also in surrounding areas. The impact of deforestation on the Earth’s water recycling system risks to be as devastating as its impact for climate change.

Amendment  6

 

Proposal for a regulation

Recital 6

Text proposed by the Commission	Amendment
(6) Climate change, biodiversity loss and deforestation are concerns of the highest global importance, affecting the survival of humanity and sustained living conditions on Earth. The acceleration of climate change, biodiversity loss and environmental degradation, paired with tangible examples of their devastating effects on nature, human living conditions and local economies, have led to the recognition of the green transition as the defining objective of our time and a matter of intergenerational equity.	(6) Climate change, biodiversity loss and deforestation are concerns of the highest global importance, affecting the survival of humanity and sustained living conditions on Earth. The acceleration of climate change, biodiversity loss and environmental degradation, paired with tangible examples of their devastating effects on nature, human living conditions and local economies, have led to the recognition of the green transition as the defining objective of our time and a matter of gender equality and of intergenerational equity.

Amendment  7

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission	Amendment
	(6a) Of the 227 lethal attacks against environmental and land defenders recorded in 2020, 70 % of those murdered were working to defend the world's forests from deforestation and industrial development. Those attacks disproportionately target indigenous peoples, who were the target of one third of the murders recorded in 2020.

Amendment  8

 

Proposal for a regulation

Recital 7

Text proposed by the Commission	Amendment
(7) Union consumption is a considerable driver of deforestation and forest degradation on a global scale. The initiative’s Impact Assessment estimated that without an appropriate regulatory intervention EU consumption and production of the six commodities included in the scope (wood, cattle, soy, palm oil, cocoa and coffee) will rise to approximately 248,000 hectares of deforestation annually by 2030.	(7) Union consumption is a considerable driver of deforestation, natural ecosystem conversion and natural ecosystem and forest degradation and forest conversion on a global scale. The initiative’s Impact Assessment estimated that without an appropriate regulatory intervention EU consumption and production of only six commodities (wood, cattle, soy, palm oil, cocoa and coffee) will rise to approximately 248,000 hectares of deforestation annually by 2030.

Amendment  9

 

Proposal for a regulation

Recital 8

Text proposed by the Commission	Amendment
(8) As regards the situation of forests within the EU, the State of Europe’s Forests 2020 report21 states that, between 1990 and 2020, the area of forests in Europe has increased by 9%, carbon stored in the biomass has grown by 50% and wood supply has risen by 40%. However, less than 5% of European forest areas are considered undisturbed, or natural, according to the European Environment Agency’s State of the Environment 2020 report22 .	(8) As regards the situation of forests within the EU the State of Europe’s Forests 2020 report21 states that, between 1990 and 2020, the area of forests in Europe has increased by 9%, carbon stored in the biomass has grown by 50% and wood supply has risen by 40%. Nevertheless natural and old-growth forests are also subject to management intensification and their unique biodiversity and structural features are in danger. Furthermore, less than 5% of European forest areas are now considered undisturbed, or natural, and climate change leads to threats ranging from extreme weather patterns to bug diseases. Forest ecosystems have to cope with multiple pressures generated from human-related activities. Those include activities that directly affect ecosystems and habitats such as certain forest management practices. In particular, intensively managed even-aged forests may have a severe impact on whole habitats through clear-cutting and deadwood removal22a.
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21 Forest Europe - Ministerial Conference on the Protection of Forests in Europe, State of Europe’s Forests 2020, https://foresteurope.org/state-europes-forests-2020/.	21 Forest Europe - Ministerial Conference on the Protection of Forests in Europe, State of Europe’s Forests 2020, https://foresteurope.org/state-europes-forests-2020/.
22 European Environment Agency, State of the Environment 2020, https://www.eea.europa.eu/soer/publications/soer-2020.	22 European Environment Agency, State of the Environment 2020, https://www.eea.europa.eu/soer/publications/soer-2020.
	22a European Environment Agency, State of the Environment 2020, https://www.eea.europa.eu/soer/publications/soer-2020.

Amendment  10

Proposal for a regulation

Recital 9

Text proposed by the Commission	Amendment
(9) In 2019, the Commission adopted several initiatives to address the global environmental crises, including specific actions on deforestation. In its Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’23 , the Commission identified as a priority the reduction of the Union consumption footprint on land and encourage the consumption of products from deforestation-free supply chains in the Union. In its Communication of 11 December 2019 entitled ‘The European Green Deal’24 , the Commission set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, where there are no net emissions of greenhouse gases in 2050, where economic growth is decoupled from resource use and no person or place are left behind. It aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens and future generations from environment-related risks and impacts. Furthermore, the European Green Deal aims to provide citizens and future generations with, among others, fresh air, clean water, healthy soil and biodiversity. To that end, the EU Biodiversity Strategy for 203025 , the Farm to Fork Strategy26 , the EU Forest Strategy27 , the EU Zero pollution action plan28 and other relevant strategies29 developed under the European Green Deal, further highlight the importance of action on forest protection and resilience. In particular, the EU Biodiversity Strategy aims to protect nature and reverse the degradation of ecosystems. Finally, the EU Bioeconomy Strategy30 enhances the protection of the environment and ecosystems while addressing the growing demand for food, feed, energy, materials and products by seeking new ways to produce and consume.	(9) In 2019, the Commission adopted several initiatives to address the global environmental crises, including specific actions on deforestation. In its Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’23 , the Commission identified as a priority the reduction of the Union consumption footprint on land and encourage the consumption of products from deforestation-free supply chains in the Union. In its Communication of 11 December 2019 entitled ‘The European Green Deal’24 , the Commission set out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy built on sustainable and rule-based free trade, where there are no net emissions of greenhouse gases in 2050, where economic growth is decoupled from resource use and no person or place are left behind. It aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens and future generations from environment-related risks and impacts. Furthermore, the European Green Deal aims to provide citizens and future generations with, among others, fresh air, clean water, healthy soil and biodiversity. To that end, the EU Biodiversity Strategy for 203025 , the Farm to Fork Strategy26 , the EU Forest Strategy27 , the EU Zero pollution action plan28 and other relevant strategies29 developed under the European Green Deal, further highlight the importance of action on forest protection and resilience. In particular, the EU Biodiversity Strategy aims to protect nature and reverse the degradation of ecosystems. Finally, the EU Bioeconomy Strategy30 enhances the protection of the environment and ecosystems while addressing the growing demand for food, feed, energy, materials and products by seeking new ways to produce and consume.
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23 COM(2019) 352 final.	23 COM(2019) 352 final.
24 Communication from the Commission to the European Parliament, The European Council, The Council, The European Economic and Social Committee and the Committee of the Regions, The European Green Deal, COM(2019) 640 final.	24 Communication from the Commission to the European Parliament, The European Council, The Council, The European Economic and Social Committee and the Committee of the Regions, The European Green Deal, COM(2019) 640 final.
25 Communication from the Commission to the European Parliament, The European Council, The Council, The European Economic and Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030 Bringing nature back into our lives, COM/2020/380 final.	25 Communication from the Commission to the European Parliament, The European Council, The Council, The European Economic and Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030 Bringing nature back into our lives, COM/2020/380 final.
26 Communication from the Commission to the European Parliament, the Council, the European Council, The European Economic and Social Committee and the Committee of the Regions, A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system, COM/2020/381 final.	26 Communication from the Commission to the European Parliament, the Council, the European Council, The European Economic and Social Committee and the Committee of the Regions, A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system, COM/2020/381 final.
27 Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions, A new EU Forest Strategy: for forests and the forest-based sector, COM(2013) 659 final.	27 Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions, A new EU Forest Strategy: for forests and the forest-based sector, COM(2013) 659 final.
28 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Pathway to a Healthy Planet for All EU Action Plan:‘Towards Zero Pollution for Air, Water and Soil’, COM/2021/400 final.	28 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Pathway to a Healthy Planet for All EU Action Plan:‘Towards Zero Pollution for Air, Water and Soil’, COM/2021/400 final.
29 e.g. Communication from the Commission to the European Parliament, the Council, the European Council, The European Economic and Social Committee and the Committee of the Regions, A long-term Vision for the EU's Rural Areas - Towards stronger, connected, resilient and prosperous rural areas by 2040, COM (2021) 345 final.	29 e.g. Communication from the Commission to the European Parliament, the Council, the European Council, The European Economic and Social Committee and the Committee of the Regions, A long-term Vision for the EU's Rural Areas - Towards stronger, connected, resilient and prosperous rural areas by 2040, COM (2021) 345 final.
30 Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions, A sustainable bioeconomy for Europe, Strengthening the connection between economy, society and the environment: updated bioeconomy strategy, Updated Bioeconomy Strategy, COM(2018) 273 final.	30 Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions, A sustainable bioeconomy for Europe, Strengthening the connection between economy, society and the environment: updated bioeconomy strategy, Updated Bioeconomy Strategy, COM(2018) 273 final.

Amendment  11

Proposal for a regulation

Recital 10

Text proposed by the Commission	Amendment
(10) Member States have repeatedly expressed their concern about persistent deforestation. They emphasised that since current policies and action at global level on conservation, restoration and sustainable management of forests do not suffice to halt deforestation and forest degradation, enhanced Union action is needed in order to contribute more effectively to the achievement of the Sustainable Development Goals (SDGs), under the 2030 Agenda for Sustainable Development, which was adopted by all United Nations Member States in 2015. The Council specifically supported the Commission announcement in the Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’ that it would assess additional regulatory and non-regulatory measures and that it would present respective proposals.31	(10) Member States have repeatedly expressed their concern about persistent deforestation. They emphasised that since current policies and action at global level on conservation, restoration and sustainable management of forests do not suffice to halt deforestation, forest degradation, forest conversion and biodiversity loss, enhanced Union action is needed in order to contribute more effectively to the achievement of the Sustainable Development Goals (SDGs), under the 2030 Agenda for Sustainable Development, which was adopted by all United Nations Member States in 2015. The Commission and Member States have also committed to the UN Decade of Action for the SDGs, the UN Decade on Ecosystem Restoration and the UN Decade of Family Farming. The Council specifically supported the Commission announcement in the Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’ that it would assess additional regulatory and non-regulatory measures and that it would present respective proposals.31
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31 Council conclusions on the Communication on Stepping Up EU Action to Protect and Restore the World’s Forests (16 December 2019) 15151/19. Available at https://www.consilium.europa.eu/media/41860/st15151-en19.pdf.	31 Council conclusions on the Communication on Stepping Up EU Action to Protect and Restore the World’s Forests (16 December 2019) 15151/19. Available at https://www.consilium.europa.eu/media/41860/st15151-en19.pdf.

Amendment  12

 

Proposal for a regulation

Recital 11

Text proposed by the Commission	Amendment
(11) The European Parliament highlighted that ongoing destruction of the world’s forests is linked, to a large extent, to the expansion of agricultural production — in particular by converting forests to agricultural land dedicated to producing a number of high-demand products and commodities. The Parliament adopted on 22 October 2020 a resolution32 in accordance with Article 225 of the Treaty on the Functioning of the European Union (TFEU) requesting the Commission to submit, on the basis of Article 192(1) TFEU, a proposal for an “EU legal framework to halt and reverse EU-driven global deforestation”.	(11) The European Parliament highlighted that ongoing destruction and degradation and conversion of the world’s forests and natural ecosystems, as well as human rights violations, are linked, to a large extent, to the expansion of agricultural production — in particular by converting forests to agricultural land dedicated to producing a number of high-demand products and commodities. The Parliament adopted on 22 October 2020 a resolution32 in accordance with Article 225 of the Treaty on the Functioning of the European Union (TFEU) requesting the Commission to submit, on the basis of Article 192(1) TFEU, a proposal for an “EU legal framework to halt and reverse EU-driven global deforestation” based on mandatory due diligence.
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32 European Parliament resolution of 22 October 2020 with recommendations to the Commission on an EU legal framework to halt and reverse EU-driven global deforestation (2020/2006(INL) Available at https://www.europarl.europa.eu/doceo/document/TA-9-2020-0285_EN.html.	32 European Parliament resolution of 22 October 2020 with recommendations to the Commission on an EU legal framework to halt and reverse EU-driven global deforestation (2020/2006(INL) Available at https://www.europarl.europa.eu/doceo/document/TA-9-2020-0285_EN.html.

Amendment  13

 

Proposal for a regulation

Recital 12

Text proposed by the Commission	Amendment
(12) Combatting deforestation and forest degradation constitutes an important part of the package of measures needed to reduce greenhouse gas emissions and to comply with the Union's commitment under the European Green Deal as well as with the 2015 Paris Agreement on Climate Change33 , and with the legally binding commitment under the EU Climate Law to reach climate neutrality by 2050 and reduce greenhouse gas emissions by at least 55 % below 1990 levels by 2030.	(12) Combatting deforestation, natural ecosystem conversion, natural ecosystem and forest degradation and forest conversion constitutes an important part of the package of measures needed to reduce greenhouse gas emissions and to comply with the Union's commitment under the European Green Deal as well as with the 2015 Paris Agreement on Climate Change33 , and the Eighth Environment Action Programme adopted by Decision (EU) 2022/591 of the European Parliament and of the Council33a, and with the legally binding commitment under the EU Climate Law to reach climate neutrality by 2050 at the latest and reduce greenhouse gas emissions by at least 55 % below 1990 levels by 2030.
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33 Ratified by the EU on 5 October 2016, and entered into force on 4 November 2016.	33 Ratified by the EU on 5 October 2016, and entered into force on 4 November 2016.
	33a Decision (EU) 2022/591 of the European Parliament and of the Council of 6 April 2022 on a General Union Environment Action Programme to 2030 (OJ L 114, 12.4.2022, p. 22).

Amendment  14

Proposal for a regulation

Recital 12 a (new)

Text proposed by the Commission	Amendment
	(12a) Combating deforestation, forest degradation and forest conversion constitutes also an important part of the package of measures needed to combat biodiversity loss and to comply with the Union’s commitments under the UN's Convention on Biological Diversity, the European Green Deal, the EU Biodiversity Strategy for 2030 and the EU nature restoration targets.

Amendment  15

Proposal for a regulation

Recital 12ba (new)

Text proposed by the Commission	Amendment
	(12b) Primary forests are unique and irreplaceable. Plantation forests and planted forests are less biodiverse and protect the environment less well than primary and natural forests. It is therefore appropriate to distinguish clearly between different types of forests in connection with the implementation of this Regulation.

Amendment  16

Proposal for a regulation

Recital 13 a (new)

Text proposed by the Commission	Amendment
	(13a) Combating deforestation, forest degradation, forest conversion and the conversion and degradation of other ecosystems also requires consumer awareness of healthier consumption patterns having a smaller environmental footprint.

Amendment  17

Proposal for a regulation

Recital 13 b (new)

Text proposed by the Commission	Amendment
	(13b) Plant proteins for feeding livestock contribute greatly to deforestation, forest degradation and forest conversion and the conversion of other ecosystems worldwide. Deforestation and the conversion of other ecosystems can be countered in particular by reducing the Union’s dependence on imported plant proteins and promoting locally and sustainably sourced plant proteins. The achievement of the objectives of this Regulation need to be accompanied by an increase in protein autonomy and the implementation of a Union strategy on plant proteins.

Amendment  18

 

Proposal for a regulation

Recital 14

Text proposed by the Commission	Amendment
(14) The Union imported and consumed one third of the globally traded agricultural products associated with deforestation between 1990 and 2008. Over that period, Union consumption was responsible for 10% of worldwide deforestation associated with the production of goods or services. Even if the relative share of EU consumption is decreasing, EU consumption is a disproportionally large driver of deforestation. The Union should therefore take action to minimise global deforestation and forest degradation driven by its consumption of certain commodities and products and thereby seek to reduce its contribution to greenhouse gas emissions and global biodiversity loss as well as promote sustainable production and consumption patterns in the Union and globally. To have the greatest impact, Union policy should aim at influencing the global market, not only supply chains to the Union. Partnerships and efficient international cooperation with producer and consumer countries are fundamental in that respect.	(14) The Union imported and consumed one third of the globally traded agricultural products associated with deforestation between 1990 and 2008. Over that period, Union consumption was responsible for 10% of worldwide deforestation associated with the production of goods or services. Even if the relative share of EU consumption is decreasing, EU consumption is a disproportionally large driver of deforestation. The Union should therefore take action to minimise global deforestation, forest degradation and forest conversion driven by its consumption of certain commodities and products and thereby seek to reduce its contribution to greenhouse gas emissions and global biodiversity loss as well as promote sustainable production and consumption patterns in the Union and globally. To have the greatest impact, Union policy should aim at influencing the global market, not only supply chains to the Union. Partnerships and efficient international cooperation, including free trade agreements (FTAs), with producer and consumer countries are fundamental in that respect.

Amendment  19

Proposal for a regulation

Recital 15

Text proposed by the Commission	Amendment
(15) Halting deforestation and forest degradation is an essential part of the SDGs. This Regulation should contribute in particular to meeting the goals regarding life on land (SDG 15), climate action (SDG 13), responsible consumption and production (SDG 12), zero hunger (SDG 2) and good health and well-being (SDG 3). The relevant target 15.2 to halt deforestation by 2020 has not been met, underlining the urgency of ambitious and effective action.	(15) Halting deforestation, forest degradation, forest conversion and the conversion and degradation of other ecosystems is an essential part of the SDGs. This Regulation should contribute in particular to meeting the goals regarding life on land (SDG 15), climate action (SDG 13), responsible consumption and production (SDG 12), zero hunger (SDG 2) and good health and well-being (SDG 3). The relevant target 15.2 to halt deforestation by 2020 has not been met, underlining the urgency of ambitious and effective action.

Amendment  20

 

Proposal for a regulation

Recital 17

Text proposed by the Commission	Amendment
(17) This Regulation should also respond to the 2021 Glasgow Leaders’ Declaration on Forests and Land Use37 that recognises that “to meet our land use, climate, biodiversity and Sustainable Development Goals, both globally and nationally, will require transformative further action in the interconnected areas of sustainable production and consumption; infrastructure development; trade, finance and investment; and support for smallholders, Indigenous Peoples, and local communities”. The signatories also stressed in that Declaration that they will strengthen their shared efforts to facilitate trade and development policies, internationally and domestically, that promotes sustainable development and sustainable commodity production and consumption, that work to countries’ mutual benefit, and that do not drive deforestation and land degradation.	(17) This Regulation should also respond to the 2021 Glasgow Leaders’ Declaration on Forests and Land Use37 that recognises that “to meet our land use, climate, biodiversity and Sustainable Development Goals, both globally and nationally, will require transformative further action in the interconnected areas of sustainable production and consumption; infrastructure development; trade, finance and investment; and support for smallholders, Indigenous Peoples, and local communities”. The signatories committed to halt and reverse forest loss and land degradation by 2030 and stressed that they will strengthen their shared efforts to facilitate trade and development policies, internationally and domestically, that promotes sustainable development and sustainable commodity production and consumption, that work to countries’ mutual benefit.
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37 https://ukcop26.org/glasgow-leaders-declaration-on-forests-and-land-use/.	37 https://ukcop26.org/glasgow-leaders-declaration-on-forests-and-land-use/.

Amendment  21

 

Proposal for a regulation

Recital 18

Text proposed by the Commission	Amendment
(18) As a member of World Trade Organisation (WTO), the Union is committed to promoting a universal, rule-based, open, transparent, predictable, inclusive, non-discriminatory and equitable multilateral trading system under the WTO, as well as an open, sustainable, and assertive trade policy. The scope of this Regulation will therefore include both commodities and products produced within the Union and commodities and products imported to the Union.	(18) As a member of World Trade Organisation (WTO), the Union is committed to promoting a universal, rule-based, open, transparent, predictable, inclusive, non-discriminatory and equitable multilateral trading system under the WTO, as well as an open, sustainable, and assertive trade policy. Any measures introduced by the Union that affect trade are required to be WTO compliant. Furthermore, all measures introduced by the Union that affect trade are required to take into account the possible response of the Union’s trade partners and ensure that the enforcement of the measure is not unduly restrictive or disruptive to trade, while taking into account that the conservation of exhaustible natural resources is of overriding interest. The scope of this Regulation will therefore include both commodities and products produced within the Union and commodities and products imported to the Union as well as focus on commodities and products most at risk of leading to deforestation, forest degradation and forest conversion.

Amendment  22

 

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission	Amendment
	(18a) The challenges the world is facing in climate change and biodiversity loss can only be dealt with by global action. The Union should be a strong global actor, both leading by example and taking the lead in international cooperation to create an open and fair multilateral system where sustainable trade acts as a key enabler of the green transition to both fight climate change and reverse biodiversity loss.

Amendment  23

 

Proposal for a regulation

Recital 19

Text proposed by the Commission	Amendment
(19) This Regulation also follows the Commission’s Communication on “An Open, Sustainable and Assertive Trade Policy”38 which stated that with new internal and external challenges and more particularly a new, more sustainable growth model as defined by the European Green Deal and the European Digital Strategy, the EU needs a new trade policy strategy –one that will support achieving its domestic and external policy objectives and promote greater sustainability in line with its commitment of fully implementing the UN Sustainable Development Goals. Trade policy must play its full role in the recovery from the COVID-19 pandemic and in the green and digital transformations of the economy and towards building a more resilient Europe in the world.	(19) This Regulation also follows the Commission’s Communication on “An Open, Sustainable and Assertive Trade Policy”38 which stated that with new internal and external challenges and more particularly a new, more sustainable growth model as defined by the European Green Deal and the European Digital Strategy, the EU needs a new trade policy strategy – one that will support achieving its domestic and external policy objectives and promote greater sustainability in line with its commitment of fully implementing the UN Sustainable Development Goals. Trade and international cooperation can be important tools for consolidating higher standards of sustainability, especially with regard to sectors that are linked to forests and their derived value chains. However, the evaluation of existing free trade agreements has shown that in some cases there are weaknesses in the implementation and enforcement of existing trade agreements and that Union trade and investment policies need to be streamlined in order to address the global deforestation challenge in a more effective manner.
__________________	__________________
38 Communication from the Commission to the European Parliament, the Council, the European, Economic and Social Committee and the Committee of the Regions, Trade Policy Review - An Open, Sustainable and Assertive Trade Policy, COM(2021) 66 final, 18 February 2021.	38 Communication from the Commission to the European Parliament, the Council, the European, Economic and Social Committee and the Committee of the Regions, Trade Policy Review - An Open, Sustainable and Assertive Trade Policy, COM(2021) 66 final, 18 February 2021.

Amendment  24

 

Proposal for a regulation

Recital 19 a (new)

Text proposed by the Commission	Amendment
	(19a) In order to revitalise the Union`s work on free trade agreements, ensure a level-playing field for Union businesses and to fulfil the Union’s commitments under the Paris Agreement and the Convention on Biological Diversity, which call for the protection of forests, the Union’s trade policy should focus on implementing and enforcing current trade agreements as well as conducting negotiations and concluding new trade agreements which include strong, binding and enforceable provisions on sustainable development.

Amendment  25

 

Proposal for a regulation

Recital 19 b (new)

Text proposed by the Commission	Amendment
	(19b) Robust clauses on deforestation, forest degradation, forest conversion and the conversion and degradation of other ecosystems should be included in the negotiating mandates, and sustainable benchmarks for relevant raw materials should be included for the granting of new trade preferences.

Amendment  26

 

Proposal for a regulation

Recital 19 c (new)

Text proposed by the Commission	Amendment
	(19c) Any partnership or cooperation with a trade partner should always allow for the full participation of all stakeholders, including civil society, indigenous peoples, local communities, local authorities and the private sector, including SMEs and smallholders, taking into account the autonomy of social partners.

Amendment  27

 

Proposal for a regulation

Recital 19 d (new)

Text proposed by the Commission	Amendment
	(19d) Public procurement provisions in free trade agreements should take into account social, environmental and responsible business conduct.

Amendment  28

 

Proposal for a regulation

Recital 19 e (new)

Text proposed by the Commission	Amendment
	(19e) This Regulation should be accompanied by strong partnership agreements based on trade and cooperation with major producer countries of the relevant commodities and products, taking into account the special interests of smallholders and local communities.

Amendment  29

 

Proposal for a regulation

Recital 20

Text proposed by the Commission	Amendment
(20) This Regulation should be complementary to other measures proposed in the Commission Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’39 , in particular: 1) working in partnership with producer countries, to support them in addressing root causes of deforestation, such as weak governance, ineffective law enforcement and corruption, and 2) strengthen international cooperation, with major consumer countries, to promote the adoption of similar measures to avoid products coming from supply chains associated with deforestation and forest degradation being placed on their markets.	(20) This Regulation should be complementary to other measures proposed in the Commission Communication ‘Stepping up EU Action to Protect and Restore the World’s Forests’39 , in particular: 1) working in partnership with producer countries, to support them in addressing root causes of deforestation, such as weak governance, ineffective law enforcement and corruption, and 2) strengthen international cooperation, with major consumer countries by, amongst other actions, promoting trade agreements that include forest conservation provisions and encourage trade in deforestation-free agricultural and forest-based products, and the adoption of similar measures to avoid products coming from supply chains associated with deforestation, forest degradation and forest conversion being placed on their markets.
__________________	__________________
39 COM(2019) 352 final.	39 COM(2019) 352 final.

Amendment  30

Proposal for a regulation

Recital 20 a (new)

Text proposed by the Commission	Amendment
	(20a) This Regulation should comply with the principle of policy coherence for development and therefore serve to promote and facilitate cooperation with developing countries, particularly with the least developed countries (LDCs), through provision of technical and financial assistance, as well as the exchange of information and good practices as regards the preservation, conservation, and sustainable use of forests, giving special recognition to sustainability initiatives carried out by the private sector.

Amendment  31

Proposal for a regulation

Recital 20 b (new)

Text proposed by the Commission	Amendment
	(20b) Depending on the developing country concerned and its general environmental, social and economic situation, an integral approach to sustainability should be considered, taking into account the environmental dimension, as well as the social and economic dimensions, in particular when referring to LDCs. Union measures should not lead to income depletion for vulnerable populations, loss of jobs or a regression in the achievements of developing countries and should avoid incentivising illegal activities, many of which are linked to transnational organised crime, and the effects of which are even more disastrous for the environment and society. The negative impact of the COVID-19 pandemic on the progress made towards achieving the SDGs, particularly the pandemic’s disproportionate impact on the poor and vulnerable, and on employment and inequality, should also be adequately taken into account.

Amendment  32

 

Proposal for a regulation

Recital 21

Text proposed by the Commission	Amendment
(21) The Commission should continue to work in partnership with producer countries, and more generally in cooperation with international organisations and bodies, and should be reinforcing its support and incentives with regard to protecting forests and transition to deforestation-free production, acknowledging the role of indigenous people, improving governance and land tenure, increasing law enforcement and promoting sustainable forest management, climate-resilient agriculture, sustainable intensification and diversification, agro-ecology and agroforestry. In doing so it should acknowledge the role of indigenous people in protecting forests. Building upon the experience and lessons learned in the context of the already existing initiatives, the Union and the Member States should work in partnership with producer countries, upon their request, to exploit the multi-functionalities of forest, support them in the transition to sustainable forest management, and address global challenges while meeting local needs and paying attention to the challenges faced by smallholders in line with the Communication to Stepping up Action to Protect and Restore the World’s Forests. The partnership approach should help producer countries in protecting, restoring and sustainably using forest, hence contributing to the objective of this Regulation to reduce deforestation and forest degradation.	(21) In coordination with Member States, the Commission should continue to work in partnership with producer countries, and more generally in cooperation with international organisations and bodies as well as relevant stakeholders active on the ground, and should be reinforcing its support and incentives with regard to protecting and restoring forests and transition to deforestation-free production, acknowledging and strengthening the role and rights of indigenous peoples and local communities, improving governance and land tenure, the right to free, prior and informed consent, increasing law enforcement and promoting close to nature sustainable forest management based on indicators and thresholds, ecotourism, climate-resilient agriculture, diversification, agro-ecology and agroforestry. In doing so it should fully recognise the role and rights of indigenous peoples and local communities in protecting forests. Building upon the experience and lessons learned in the context of the already existing initiatives, the Union and the Member States should work in partnership with producer countries, upon their request, and address global challenges while meeting local needs and paying attention to the challenges faced by smallholders in line with the Communication to Stepping up Action to Protect and Restore the World’s Forests. Any rules and requirements should try to minimise the burden on smallholders in third countries and try to prevent barriers to their access to the Union market and to international trade. The partnership approach should help producer countries in protecting, restoring and sustainably using forest, hence contributing to the objective of this Regulation to reduce deforestation, forest degradation and forest conversion as well as supporting forest restoration, including through the use of digital technologies and geospatial information.

Amendment  33

Proposal for a regulation

Recital 21 a (new)

Text proposed by the Commission	Amendment
	(21a) This Regulation recognises the economic importance of commodity exports for third countries as well as the specific challenges that smallholders, especially women, may face. Given that the share of smallholders in the production of the commodities concerned can be very high, special attention needs to be paid to the challenges that smallholders will face with the implementation of this Regulation. It is crucial that the operators buying from smallholders provide timely financial and technical support to help smallholders meet the new Union market access requirements. To support sustainable practices, such as agro-ecology and community forest management, the Union should tackle direct and indirect drivers of deforestation, including poverty, by promoting a living income for smallholders producing goods exported to the Union and securing sufficient resources to specifically support smallholders in third countries to comply with the requirements of this Regulation and facilitate their access to the Union market. At the same time, the setting up of a credible traceability system can empower smallholder farmers as it can avoid the non-payment of promised sustainability premiums, allow for electronic payments to producers by using the national traceability system, thus combating fraud and enabling local authorities to collect knowledge on the number of producer plots and control the number of farmers.

Amendment  34

 

Proposal for a regulation

Recital 22

Text proposed by the Commission	Amendment
(22) Another important action announced in the Communication is the establishment of the EU Observatory on deforestation, forest degradation, changes in the world’s forest cover and associated drivers (“EU Observatory”) launched by the Commission in order to better monitor changes in the world’s forest cover and related drivers. Moreover, building on already existing monitoring tools, including Copernicus products, the EU Observatory will facilitate access to information on supply chains for public entities, consumers and business, providing easy-to-understand data and information linking deforestation, forest degradation, and changes in the world’s forest cover to EU demand/trade for commodities and products. The EU Observatory will thus directly support the implementation of this Regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. The EU Observatory will cooperate closely with relevant international organisations, research institutes, and third countries.	(22) Another important action announced in the Communication is the establishment of the EU Observatory on deforestation, forest degradation, changes in the world’s forest cover and associated drivers (“EU Observatory”) launched by the Commission in order to better monitor changes in the world’s forest cover and related drivers. Moreover, building on already existing monitoring tools, including Copernicus products and other publicly or privately available sources, the EU Observatory will facilitate access to information on supply chains for public entities, consumers and business, providing easy-to-understand data and information linking deforestation, forest degradation, and changes in the world’s forest cover to EU demand/trade for commodities and products. The EU Observatory will thus directly support the implementation of this Regulation by providing scientific evidence in regard to global deforestation and forest degradation and related trade. The EU Observatory should have stable and sufficient resources and should participate in the establishment of a rapid alert system for operators, traders, civil society and competent authorities where the forest cover analysis reveals deforestation or forest degradation activity. In order to facilitate the implementation of this Regulation, the Commission should also examine how the EU Observatory can contribute to the analysis of relevant legislation in producer countries, including tenure rights and the procedural right to give free, prior and informed consent. The EU Observatory will cooperate closely with relevant international organisations, research institutes, non-governmental organisations, operators and third countries. It will also cooperate with the competent authorities of the Member States with a view to centralising the data and the results of the controls which they carry out on the spot.

Amendment  35

Proposal for a regulation

Recital 23

Text proposed by the Commission	Amendment
(23) The existing EU legislative framework focuses on tackling illegal logging and associated trade and does not address deforestation directly. It consists of Regulation (EU) No 995/2010 of the European Parliament and of the Council, laying down the obligations of operators who place timber and timber products on the market40 , and Council Regulation (EC) No 2173/2005, on the establishment of a Forest Law Enforcement, Governance and Trade licensing scheme for imports of timber into the European Community41 . Both Regulations were evaluated in a Fitness Check which determined that, while the legislation has had a positive impact on forest governance, the objectives of the two Regulations – namely to curb illegal logging and related trade, and to reduce the consumption of illegally harvested timber in the EU – have not been met42 and it was concluded that focusing solely on legality of timber was not sufficient to meet the set objectives.	(23) The existing EU forest framework is the EU Action Plan for Forest Law Enforcement, Governance and Trade that focuses on tackling illegal logging and associated trade and does not address deforestation directly. It consists of Regulation (EU) No 995/2010 of the European Parliament and of the Council, laying down the obligations of operators who place timber and timber products on the market40, and Council Regulation (EC) No 2173/2005, on the establishment of a Forest Law Enforcement, Governance and Trade licensing scheme for imports of timber into the European Community41 which operationalises the Voluntary Partnership Agreements (VPAs). The performance and implementation of the two Regulations underwent a fitness check which found that, while both achieved some success, a number of implementation challenges have held back progress towards achieving fully their objectives. The application and functioning of the due diligence scheme under Regulation (EU) No 995/210 on the one hand, and the limited number of countries involved in the VPA process, with only one having thus far an operating licensing system in place (Indonesia), on the other, curtailed effectiveness in meeting the objective of consumption of illegally harvested timber in the EU.
_________________
40 OJ L 295, 12.11.2010, p. 23.	40 OJ L 295, 12.11.2010, p. 23.
41 OJ L 347, 30.12.2005, p. 1.	41 OJ L 347, 30.12.2005, p. 1.
42 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/11630-Illegal-logging-evaluation-of-EU-rules-fitness-check-_en

Amendment  36

 

Proposal for a regulation

Recital 24

Text proposed by the Commission	Amendment
(24) Available reports confirm that a sizable part of ongoing deforestation is legal according to the laws of the country of production. A recent report43 estimates that between 2013 and 2019, around 30% of deforestation destined to commercial agriculture in tropical countries was legal. Available data tend to focus on countries with weak governance — the global share of deforestation that is illegal might be lower, but already provide clear data signalling that leaving out deforestation that is legal in the country of production undermines the effectiveness of policy measures.	(24) Available reports confirm that a sizable part of ongoing deforestation is legal according to the laws of the country of production. A recent report43 estimates that between 2013 and 2019, around 30% of deforestation destined to commercial agriculture in tropical countries was legal. Available data tend to focus on countries with weak governance — the global share of deforestation that is illegal might be lower, but already provide clear data signalling that leaving out deforestation that is legal in the country of production undermines the effectiveness of measures in this area.
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43 https://www.forest-trends.org/wp-content/uploads/2021/05/Illicit-Harvest-Complicit-Goods_rev.pdf.	43 https://www.forest-trends.org/wp-content/uploads/2021/05/Illicit-Harvest-Complicit-Goods_rev.pdf.

Amendment  37

Proposal for a regulation

Recital 25

Text proposed by the Commission	Amendment
(25) The impact assessment of possible policy measures to address Union-driven deforestation and forest degradation, Council conclusions and the 2020 resolution of the European Parliament clearly identify the need to establish deforestation and forest degradation as the guiding criteria for future Union measures. Therefore, the new Union legal framework should address both legality and whether the production of relevant commodities and products is deforestation-free.	(25) The impact assessment of possible policy measures to address Union-driven deforestation and forest degradation, Council conclusions and the 2020 resolution of the European Parliament clearly identify the need to establish deforestation and forest degradation as the guiding criteria for future Union measures. Focusing only on legality could potentially encourage a race to the bottom in countries that are highly dependent on agricultural exports. Those countries could be tempted to lower their environmental protection with a view to facilitating access of their products to the Union market. Therefore, the new Union legal framework should address both legality, whether the production of relevant commodities and products is deforestation-free and whether the protection of tenure rights of indigenous and local populations has been maintained.

Amendment  38

 

Proposal for a regulation

Recital 26

Text proposed by the Commission	Amendment
(26) The definition of “deforestation-free” should be sufficiently broad to cover both deforestation and forest degradation, it should provide legal clarity, and it should be measurable based on quantitative, objective and internationally recognised data.	(26) The definition of “deforestation-free” should be sufficiently broad to cover deforestation, forest degradation and forest conversion it should provide legal clarity, and it should be measurable based on quantitative, objective and internationally recognised data.

Amendment  39

 

Proposal for a regulation

Recital 27

Text proposed by the Commission	Amendment
(27) The Regulation should cover those commodities whose Union consumption is the most relevant in terms of driving global deforestation and forest degradation and for which a Union policy intervention could bring highest benefits per unit value of trade. An extensive review of scientific literature, namely of primary sources estimating the impact of EU consumption on global deforestation and linking that footprint to specific commodities, was carried out as a part of the study supporting the Impact Assessment and cross-checked via extensive consultation with stakeholders. That process delivered a first list of eight commodities. Wood was directly included in the scope as it was already covered by the EUTR. The list of the commodities was then further reduced via an efficiency analysis in the Impact Assessment. This efficiency analysis compared the hectares of deforestation linked to EU consumption, as estimated in a recent research paper44 , for each of those commodities with their average value of EU imports. According to the research paper used for the efficiency analysis, six commodities represent the largest share of EU-driven deforestation among the total of eight commodities analysed in that research paper: palm oil (33,95%), soy (32,83%), wood (8,62%), cocoa (7,54%), coffee (7,01%) and beef (5,01%).	(27) The Regulation should cover those commodities whose Union consumption is the most relevant in terms of driving global deforestation, forest degradation and forest conversion and for which a Union policy intervention could bring highest benefits per unit value of trade. An extensive review of scientific literature, namely of primary sources estimating the impact of EU consumption on global deforestation and linking that environmental footprint to specific commodities, was carried out as a part of the study supporting the Impact Assessment and cross-checked via extensive consultation with stakeholders. That process delivered a first list of commodities. Wood was directly included in the scope as it was already covered by the EUTR. According to a recent research44 paper used for the efficiency analysis, six commodities represent the largest share of EU-driven deforestation among the total of commodities analysed in that research paper: palm oil (33,95%), soy (32,83%), wood (8,62%), cocoa (7,54%), coffee (7,01%) and beef (5,01%). Meat imported into the Union should be subject to the same rules as meat produced within the Union. Therefore, meat from swine, poultry, and sheep and goats should be covered by this Regulation to ensure that animals raised outside the Union and then imported have been fed with deforestation-free commodities or products. Rubber and maize should also be covered by this Regulation due to their impact on global deforestation. The Commission should be entitled to adopt delegated acts to extend the scope of Annex I.
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44 Pendrill F., Persson U. M., Kastner, T. 2020.	44 Pendrill F., Persson U. M., Kastner, T. 2020.

Amendment  40

Proposal for a regulation

Recital 27 a (new)

Text proposed by the Commission	Amendment
	(27a) Financial institutions should be covered by this Regulation as their services could lead to support activities linked directly or indirectly to deforestation, forest degradation and forest conversion. All banking, investment and insurance activities of financial institutions should therefore be included in the scope of this Regulation in order to prevent them supporting projects directly or indirectly linked to deforestation, forest degradation or forest conversion.

Amendment  41

 

Proposal for a regulation

Recital 29

Text proposed by the Commission	Amendment
(29) Obligations concerning relevant commodities and products should be laid down by this Regulation in order to effectively combat deforestation, forest degradation, and to promote deforestation-free supply chains.	(29) Obligations concerning relevant commodities and products should be laid down by this Regulation in order to effectively combat deforestation, forest degradation and forest conversion, and to promote deforestation-free supply chains, as well as to promote the protection of human rights, and the rights of indigenous peoples and local communities, both in the Union and in third countries.

Amendment  42

 

Proposal for a regulation

Recital 29 a (new)

Text proposed by the Commission	Amendment
	(29a) When assessing the risk of non-compliance of relevant commodities and products intended to be placed on or exported from the Union market with the requirements of this Regulation, violations of human rights that are associated to deforestation, forest degradation and forest conversion, including rights of indigenous peoples, local communities and customary tenure rights holders, should be taken into account.

Amendment  43

 

Proposal for a regulation

Recital 30

Text proposed by the Commission	Amendment
(30) Many international organisations and bodies (e.g. Food and Agriculture Organization of the United Nations, the Intergovernmental Panel on Climate Change, United Nations Environment Programme, the Paris Agreement, International Union for the Conservation of Nature, Convention on Biological Diversity) have developed work in the field of deforestation and forest degradation and the definitions in this Regulation build on this work.	(30) Many international organisations and bodies (e.g. Food and Agriculture Organization of the United Nations, the Intergovernmental Panel on Climate Change, United Nations Environment Programme, the Paris Agreement, International Union for the Conservation of Nature, Convention on Biological Diversity) have developed work in the field of deforestation and forest degradation as well as the conversion and degradation of other ecosystems and the definitions in this Regulation build on this work.

Amendment  44

 

Proposal for a regulation

Recital 31

Text proposed by the Commission	Amendment
(31) A cut-off date should be set to provide a basis for the evaluation of whether concerned land has been subject to deforestation or forest degradation, meaning that no commodities and products in the scope of this Regulation would be allowed to enter the Union market or be exported if they were produced on land subject to deforestation or forest degradation after that date. It should allow for the appropriate verification and monitoring, correspond to existing international commitments, such as the SDGs and the New York Declaration on Forests, thus minimising sudden disruption to supply chains while removing any incentive to accelerate activities leading to deforestation and forest degradation in view of the entry into force of this Regulation.	(31) A cut-off date should be set to provide a basis for the evaluation of whether concerned land has been subject to deforestation, forest degradation or forest conversion, meaning that no commodities and products in the scope of this Regulation would be allowed to enter the Union market or be exported if they were produced on land subject to deforestation or forest degradation or forest conversion after that date. It should allow for the appropriate verification and monitoring, taking into account existing international commitments, such as the SDGs and the New York Declaration on Forests, thus minimising sudden disruption to supply chains while removing any incentive to accelerate activities leading to deforestation, forest degradation and forest conversion in view of the entry into force of this Regulation.

Amendment  45

 

Proposal for a regulation

Recital 32

Text proposed by the Commission	Amendment
(32) To strengthen the Union’s contribution to halting deforestation and forest degradation, and to ensure that commodities and products from supply chains related to deforestation and forest degradation are not placed on the Union market, relevant commodities and products should not be placed or made available on the Union market, nor exported from the Union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production. To confirm that this is the case, they should always be accompanied by a due diligence statement.	(32) To strengthen the Union’s contribution to halting deforestation, forest degradation and forest conversion, and to ensure that commodities and products from supply chains related to deforestation, forest degradation and forest conversion are not placed on or exported from the Union market, relevant commodities and products should not be placed or made available on the Union market, nor exported from the Union market unless they are deforestation-free and have been produced in accordance with the relevant domestic and international law and standards. To confirm that this is the case, they should always be accompanied by a due diligence statement.

Amendment  46

 

Proposal for a regulation

Recital 33

Text proposed by the Commission	Amendment
(33) On the basis of a systemic approach, operators should take the appropriate steps in order to ascertain that the relevant commodities and products that they intend to place on the Union market comply with the deforestation-free and legality requirements of this Regulation. To that end, operators should establish and implement due diligence procedures. The due diligence procedure required by this Regulation should include three elements: information requirements, risk assessment and risk mitigation measures. The due diligence procedures should be designed to provide access to information about the sources and suppliers of the commodities and products being placed on the Union market, including information demonstrating that the absence of deforestation and forest degradation and legality requirements are fulfilled, inter alia by identifying the country and area of production, including geo-location coordinates of relevant plots of land. These geo-location coordinates that rely on timing, positioning and/or Earth observation could make use of space data and services delivered under the Union’s Space programme (EGNOS/Galileo and Copernicus). On the basis of this information, operators should carry out a risk assessment. Where a risk is identified, operators should mitigate such risk to achieve no or negligible risk. Only after completing the required steps of the due diligence procedure and concluding that no or negligible risk exists that the relevant commodity or product is not compliant with this Regulation, should the operator be allowed to place the relevant commodity or product on the Union market or to export it.	(33) On the basis of a systemic approach, operators should take the appropriate steps in order to ascertain that the relevant commodities and products that they intend to place on the Union market comply with the deforestation-free and legality requirements of this Regulation. To that end, operators should establish and implement due diligence procedures. The due diligence procedure required by this Regulation should include four elements: information requirements, risk assessment and risk mitigation measures and reporting obligations. The due diligence procedures should be designed to provide access to information about the sources and suppliers of the commodities and products being placed on the Union market, including information demonstrating that the absence of deforestation, forest degradation and forest conversion and legality requirements are fulfilled, and that the country of production has complied with the legality requirement and with international human rights law, including the right to prior, free and informed consent inter alia by identifying the country of production or parts thereof, including geo-location coordinates. These geo-location coordinates that rely on timing, positioning and/or Earth observation could make use of space data and services delivered under the Union’s Space programme (EGNOS/Galileo and Copernicus). The application of the geolocation requirement in sectors where smallholders represent a significant share of producers could be particularly challenging, and guidance as well as technical and financial support should be provided where relevant. On the basis of this information, operators should carry out a risk assessment. Where a risk is identified, operators should mitigate such risk to achieve no or negligible risk. Only after completing the required steps of the due diligence procedure and concluding that no or negligible risk exists that the relevant commodity or product is not compliant with this Regulation, should the operator be allowed to place the relevant commodity or product on the Union market or to export it. In order to foster transparency and facilitate enforcement, operators should, on an annual basis, publicly report on their due diligence system, including on the steps taken to implement their obligations.

Amendment  47

Proposal for a regulation

Recital 33 a (new)

Text proposed by the Commission	Amendment
	(33a) Operators should undertake reasonable efforts to ensure a fair price is paid to the producers they source from, in particular smallholders, so as to enable a living income and effectively address poverty as a root cause of deforestation.

Amendment  48

Proposal for a regulation

Recital 33 b (new)

Text proposed by the Commission	Amendment
	(33b) Operators and traders and the competent authorities of Member States should be able to benefit from the tools made available by the Union when collecting and retranscribing the information required for the due diligence procedure. The agencies in charge of EGNOS/Galileo and Copernicus should strengthen their synergies in order to allow for a holistic approach. Operators and traders, in cooperation with the Commission, should support farmers, particularly smallholders, indigenous peoples and local communities, so that they can procure and make appropriate use of the necessary tools to collect information, including geo-location, and to take ownership of them in a sustainable manner.

Amendment  49

 

Proposal for a regulation

Recital 34

Text proposed by the Commission	Amendment
(34) Operators should formally assume responsibility for the compliance of the relevant commodities or products that they intend to place on the Union market or to export by making available due diligence statements. A template for such statements should be provided by this Regulation. This is expected to facilitate enforcement of this Regulation through competent authorities and courts as well as increase compliance by operators.	(34) Operators placing a commodity or product concerned on the Union market or exporting a product or a commodity to a third country should formally assume responsibility for the compliance of the relevant commodities or products that they intend to place on the Union market or to export by making available due diligence statements. A template for such statements should be provided by this Regulation. This is expected to facilitate enforcement of this Regulation through competent authorities and courts as well as increase compliance by operators.

Amendment  50

 

Proposal for a regulation

Recital 36

Text proposed by the Commission	Amendment
(36) Traders should be responsible for collecting and keeping information ensuring the transparency of the supply chain of relevant commodities and products which they make available on the market. Large traders that are not small and medium-sized enterprises (SMEs) have a significant influence on supply chains and play an important role in ensuring that they are deforestation-free and should therefore have the same obligations as operators.	(36) Traders should be responsible for collecting and keeping information ensuring the transparency of the supply chain of relevant commodities and products which they make available on the market. Large traders that are not small and medium-sized enterprises (SMEs) have a significant influence on supply chains and play an important role in ensuring that supply chains are deforestation-free and should therefore have the same obligations as operators.

Amendment  51

 

Proposal for a regulation

Recital 37

Text proposed by the Commission	Amendment
(37) In order to foster transparency and facilitate enforcement, operators which are not SMEs should, on an annual basis, publicly report on their due diligence system, including on the steps taken to implement their obligations.	(37) In order to foster transparency and facilitate enforcement, operators should, on an annual basis, publicly report on their due diligence system, including on the steps taken to implement their obligations.

Amendment  52

 

Proposal for a regulation

Recital 38

Text proposed by the Commission	Amendment
(38) Other EU legislative instruments that set out due diligence requirements in the value chain with regard to adverse human rights or environmental impacts should apply in so far as there are no specific provisions with the same objective, nature and effect in this Regulation which may be adapted in the light of future legislative amendments. The existence of this Regulation should not exclude the application of other EU legislative instruments that lay down requirements regarding value chain due diligence. Where such other EU legislative instruments provide for more specific provisions or add requirements to the provisions laid down in this Regulation, such provisions should be applied in conjunction with those of this Regulation. Furthermore, where this Regulation contains more specific provisions, they should not be interpreted in a way that undermines the effective application of other EU legislative instruments on due diligence or the achievement of their general aim.	(38) Other EU legislative instruments that set out due diligence requirements in the value chain with regard to adverse human rights or environmental impacts, such as Regulation (EU) 2020/852 of the European Parliament and of the Council1aand [the forthcoming Directive on Corporate Sustainability Due Diligence]1b, should apply in so far as there are no specific provisions with the same objective, nature and effect in this Regulation which may be adapted in the light of future legislative amendments. This Regulation aims to ensure the conformity of commodities and products with sustainability and legality requirements. It applies ex-ante, before commodities or products are placed on or exported from the Union market. The existence of this commodity-specific Regulation should not exclude the application of other EU legislative instruments that lay down requirements regarding value chain due diligence. Where such other EU legislative instruments provide for more specific provisions or add requirements to the provisions laid down in this Regulation, such provisions should be applied in conjunction with those of this Regulation. Furthermore, where this Regulation contains more specific provisions, they should not be interpreted in a way that undermines the effective application of other EU legislative instruments on due diligence or the achievement of their general aim. The Commission should issue clear and easy to understand guidelines to help operators and traders, in particular SMEs, to comply with the requirements of this Regulation with the aim to minimise the administrative and financial burden. The guidelines should also support operators to fulfil their due diligence requirements in an effective manner when they fall under the scope of other overlapping legislative instruments setting out other due diligence requirements.
	__________________
	1a Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
	1b COM(2022)0071 final.

Amendment  53

 

Proposal for a regulation

Recital 38 a (new)

Text proposed by the Commission	Amendment
	(38a) There is a direct link between deforestation and the conversion of ecosystems and violations of human rights, in particular those of indigenous peoples and local communities. Special attention should be paid to their needs and their full inclusion in the implementation of this Regulation. Full respect for international texts and standards, including the United Nations Declaration on the Rights of Indigenous Peoples, customary tenure rights, the right to free, prior and informed consent (FPIC) should be ensured. Labour rights as enshrined in International Labour Organisation fundamental conventions, women`s rights, the rights to environmental protection and the right to defend human rights and the environment should also be promoted.

Amendment  54

 

Proposal for a regulation

Recital 40

Text proposed by the Commission	Amendment
(40) Responsibility for enforcing this Regulation should lie with the Member States, and their competent authorities should be required to ensure that this Regulation is fully complied with. A uniform enforcement of this Regulation as regards relevant commodities and products entering or leaving the Union market can only be achieved through systematic exchange of information and cooperation amongst competent authorities, customs authorities and the Commission.	(40) Responsibility for enforcing this Regulation should lie with the Member States, and their competent authorities should be required to ensure that this Regulation is fully complied with. A uniform enforcement of this Regulation as regards relevant commodities and products entering or leaving the Union market can only be achieved through systematic exchange of information and cooperation amongst competent authorities, customs authorities and the Commission. The Commission should, in particular, carry out an analysis of the penalties applied by Member States and conduct an exchange with them in order to promote harmonised implementation of this Regulation.

Amendment  55

 

Proposal for a regulation

Recital 40 a (new)

Text proposed by the Commission	Amendment
	(40a) For the purposes of effective enforcement of this Regulation and compliance with it by competent authorities, operators and traders, members of the public concerned should be able to take action to ensure compliance with environmental law and thus protect the environment.

Amendment  56

 

Proposal for a regulation

Recital 40 b (new)

Text proposed by the Commission	Amendment
	(40b) The right to an effective remedy is an internationally recognised human right, enshrined in Article 8 of the Universal Declaration of Human Rights, Article 9(3) of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters and Article 2(3) of the International Covenant on Civil and Political Rights, and is also a fundamental right of the Union within the meaning of Article 47 of the Charter of Fundamental Rights of the European Union and Member States should therefore ensure that members of the public concerned or affected by a violation of this Regulation have proper access to an effective remedy.

Amendment  57

 

Proposal for a regulation

Recital 41

Text proposed by the Commission	Amendment
(41) The effective and efficient implementation and enforcement of this Regulation are essential to achieving its goals. To this end, the Commission should set up and manage an information system to support the operators and the competent authorities in presenting and accessing the necessary information on relevant commodities and products placed on the market. The operators should submit the due diligence statements to the information system. The information system should be accessible to competent authorities and customs authorities to facilitate fulfilling their obligations under this Regulation. The information system should also be accessible for a wider public, with the anonymised data provided in an open and machine-readable format in line with the Union’s Open Data Policy.	(41) The effective and efficient implementation and enforcement of this Regulation are essential to achieving its goals. To this end, the Commission should set up and manage an information system to support the operators and the competent authorities in presenting and accessing the necessary information on relevant commodities and products placed on the market. The operators should submit the due diligence statements to the information system. The information system should be accessible to competent authorities and customs authorities to facilitate fulfilling their obligations under this Regulation and should facilitate transfers of information among Member States, competent authorities and customs authorities. The non-commercially sensitive data should also be accessible for a wider public, with the data being anonymised – apart from information concerning the list of non-compliant operators and traders – and provided in an open and machine-readable format in line with the Union’s Open Data Policy.

Amendment  58

 

Proposal for a regulation

Recital 42

Text proposed by the Commission	Amendment
(42) For the relevant commodities entering or leaving the Union market, competent authorities are tasked with the verification of the compliance of relevant commodities and products with the obligations under this Regulation, whereas the role of customs is to ensure that the reference of a due diligence statement is made available in the customs declaration where applicable and, in addition as from the moment the electronic interface will be in place to exchange information between customs authorities and competent authorities, to check the status of the due diligence statement after an initial risk analysis carried out by competent authorities in the Information System and act accordingly (i.e. suspend or refuse a commodity or product if requested to do so through the status in the Information System). This specific organisation of controls discards the application of Chapter VII of Regulation (EU) 2019/1020 in so far as the application and enforcement of this Regulation is concerned.	(42) For the relevant commodities and products entering or leaving the Union market, competent authorities are tasked with the verification of the compliance of relevant commodities and products with the obligations under this Regulation based on, inter alia, the due diligence statements submitted by the operators, whereas the role of customs is to ensure that the reference of a due diligence statement is made available in the customs declaration where applicable and, in addition as from the moment the electronic interface will be in place to exchange information between customs authorities and competent authorities, to check the status of the due diligence statement after an initial risk analysis carried out by competent authorities in the Information System and act accordingly (i.e. suspend or refuse a commodity or product if requested to do so through the status in the Information System). This specific organisation of controls discards the application of Chapter VII of Regulation (EU) 2019/1020 in so far as the application and enforcement of this Regulation is concerned.

Amendment  59

 

Proposal for a regulation

Recital 42 a (new)

Text proposed by the Commission	Amendment
	(42a) The checks carried out by the competent authorities should be carried out in a manner which is the least disruptive to trade and to the operations of operators and traders.

Amendment  60

Proposal for a regulation

Recital 43 a (new)

Text proposed by the Commission	Amendment
	(43a) The Commission should ensure adequate and sufficient financial resources, including specifically for technical support, including through the Neighbourhood, Development and International Cooperation Instrument – Global Europe, to help partner countries with the compliance of the requirements established by this Regulation. Those resources should already be available ahead of this Regulation’s entry into force and full implementation to enhance the adaptation capacities of affected communities, with particular attention to smallholders.

Amendment  61

 

Proposal for a regulation

Recital 45

Text proposed by the Commission	Amendment
(45) In order to optimise and unburden the control process of relevant commodities and products entering or leaving the Union market, it is necessary to set up electronic interfaces that allow the automatic data transfer between customs systems and the Information System of competent authorities. The EU Single Window environment for customs is the natural candidate to support such data transfers. The interfaces should be highly automated and easy-to-use, and additional burden for customs authorities should be limited. Moreover, in view of the limited differences between the data to be declared respectively in the customs declaration and the due diligence statement, it is appropriate to propose also a ‘business-to-government’ approach whereby traders and economic operators make available the due diligence statement of a relevant commodity or product via national single window environment for customs and this statement is transmitted automatically to the Information System used by competent authorities. Customs authorities and competent authorities should contribute to determine the data to be transmitted and any other technical requirement.	(45) In order to optimise and unburden the control process of relevant commodities and products entering or leaving the Union market, it is necessary to set up interoperable electronic interfaces that allow the automatic data transfer between customs systems and the Information System of competent authorities. The EU Single Window environment for customs is the natural candidate to support such data transfers. The interfaces should be highly automated and easy-to-use, and facilitate processes for customs authorities as well as limit costs and burden for operators. Moreover, in view of the limited differences between the data to be declared respectively in the customs declaration and the due diligence statement, it is appropriate to propose also a ‘business-to-government’ approach whereby economic operators make available the due diligence statement of a relevant commodity or product via national single window environment for customs and this statement is transmitted automatically to the Information System used by competent authorities. Customs authorities and competent authorities should contribute to determine the data to be transmitted and any other technical requirement.

Amendment  62

 

Proposal for a regulation

Recital 46

Text proposed by the Commission	Amendment
(46) The risk of non-compliant commodities and products being placed on the Union market varies depending on the commodity and product as well as on its country of origin and production. Operators sourcing commodities and products from countries or parts thereof that present a low risk of growing, harvesting or producing relevant commodities in violation of this Regulation should be subject to fewer obligations, thereby reducing compliance costs and administrative burden. Commodities and products from high-risk countries or parts thereof should be subject to enhanced scrutiny by the competent authorities.	(46) The risk of non-compliant commodities and products being placed on the Union market varies depending on the commodity and product as well as on its country of origin and production or parts thereof. Operators sourcing commodities and products from countries or parts thereof that present a low risk of growing, harvesting or producing relevant commodities in violation of this Regulation should be subject to fewer obligations, thereby reducing compliance costs and administrative burden, unless the operator knows or has reason to believe that there are risks of non-compliance with this Regulation. Where a competent authority becomes aware of a risk that the requirements of this Regulation are being circumvented, for example where a relevant commodity or product produced in a high-risk country is subsequently processed in, or exported to, the Union from a low-risk country, and the customs declaration or due diligence statement indicate that the commodity or product was produced in a low-risk country, it should verify via further checks whether there is any non-compliance and, if necessary, take appropriate action, such as seizure and suspension of placing on the market of the relevant commodity or product, as well as carry out further checks. Commodities and products from high-risk countries or parts thereof should be subject to enhanced scrutiny by the competent authorities.

Amendment  63

 

Proposal for a regulation

Recital 47

Text proposed by the Commission	Amendment
(47) For this reason, the Commission should assess the deforestation and forest degradation risk at a level of a country or parts thereof based on a range of criteria that reflect both quantitative, objective and internationally recognised data, and indications that the countries are actively engaged in fighting deforestation and forest degradation. This benchmarking information should make it easier for operators in the Union to exercise due diligence and for competent authorities to monitor and enforce compliance, while also providing an incentive for producer countries to increase the sustainability of their agricultural production systems and reduce their deforestation impact. This should help making supply chains more transparent and sustainable. This benchmarking system should be based on a three-tier classification of countries to be regarded as low, standard or high risk. In order to ensure appropriate transparency and clarity, the Commission should in particular make publicly available the data being used for benchmarking, the reasons for the proposed change of classification and the reply of the country concerned. For relevant commodities and products from low risk countries or parts of countries identified as low-risk, operators should be allowed to apply a simplified due diligence, whilst competent authorities should be required to apply enhanced scrutiny on relevant commodities and products from high risk countries or parts of countries identified as high-risk. The Commission should be empowered to adopt implementing measures to establish the countries or parts thereof that present a low or high risk of producing relevant commodities and products that are not compliant with this Regulation.	(47) For this reason, the Commission should assess the deforestation and forest degradation or forest conversion risk at a level of a country or parts thereof based on a range of criteria that reflect both quantitative, objective and internationally recognised data, and indications that the countries are actively engaged in fighting deforestation, forest degradation and forest conversion, and for the promotion of rights of indigenous peoples and local communities. This benchmarking information should make it easier for operators in the Union to exercise due diligence and for competent authorities to monitor and enforce compliance, while also providing an incentive for producer countries to increase the sustainability of their agricultural production systems and reduce their deforestation impact. This should help making supply chains more transparent and sustainable. This benchmarking system should be based on a three-tier classification of countries to be regarded as low, standard or high risk. In order to ensure appropriate transparency and clarity, the Commission should in particular make publicly available the data being used for benchmarking, the reasons for the proposed change of classification and the reply of the country concerned. For relevant commodities and products from low risk countries or parts of countries identified as low-risk, operators should be allowed to apply a simplified due diligence, whilst competent authorities should be required to apply enhanced scrutiny on relevant commodities and products from high risk countries or parts of countries identified as high-risk. The Commission should be empowered to adopt implementing measures to establish the countries or parts thereof that present a low or high risk of producing relevant commodities and products that are not compliant with this Regulation.

Amendment  64

 

Proposal for a regulation

Recital 47 a (new)

Text proposed by the Commission	Amendment
	(47a) To ensure that this Regulation does not create an unnecessary restriction to trade, the Commission should cooperate with countries which are identified to present a standard or high risk, and with relevant stakeholders in these countries, in order to work towards reducing the level of risk.

Amendment  65

 

Proposal for a regulation

Recital 48

Text proposed by the Commission	Amendment
(48) Competent authorities should carry out checks at regular intervals on operators and traders to verify that they effectively fulfil the obligations laid down in this Regulation. Moreover, competent authorities should carry out checks when in possession of and based on relevant information, including substantiated concerns submitted by third parties. For a comprehensive coverage of the relevant commodities and products, the respective operators and traders and the volumes of their share of commodities and products, a twofold approach should apply. Competent authorities should thus be required to check on a certain percentage of operators and traders, whilst also covering a specific percentage of relevant commodities and products. Such percentages should be higher for relevant commodities and products from high-risk countries or parts thereof.	(48) Competent authorities should carry out checks at regular intervals on operators and traders to verify that they effectively fulfil the obligations laid down in this Regulation. Moreover, competent authorities should carry out checks when in possession of and based on relevant information, including substantiated concerns submitted by third parties. For a comprehensive coverage of the relevant commodities and products, the respective operators and traders and the volumes of their share of commodities and products, a twofold approach should apply. Competent authorities should thus be required to check on a certain percentage of operators and traders, whilst also covering a specific percentage of relevant commodities and products. Such percentages should be higher for relevant commodities and products from high-risk countries or parts thereof whereas they can be lower for low-risk countries or parts thereof.

Amendment  66

 

Proposal for a regulation

Recital 49

Text proposed by the Commission	Amendment
(49) The checks of operators and traders by competent authorities should cover the due diligence systems and the compliance of the relevant commodities and products with the provisions of this Regulation. The checks should be based on a risk-based plan of checks. The plan should contain risk criteria that enable competent authorities to carry out a risk analysis of the due diligence statements submitted by operators and traders. The risk criteria should take into account the risk of deforestation associated to relevant commodities and products in the country of production, the history of compliance of operators and traders with the obligations of this Regulation and any other relevant information available to competent authorities. The risk analysis of due diligence statements should allow competent authorities the identification of operators, traders and relevant commodities and products to be checked, and should be carried out using electronic data processing techniques in the information system which collects the due diligence statements.	(49) The checks of operators and traders by competent authorities should cover the due diligence systems and the compliance of the relevant commodities and products with the provisions of this Regulation. The checks should be based on a risk-based plan of checks. The plan should contain risk criteria that enable competent authorities to carry out a risk analysis of the due diligence statements submitted by operators and traders. The risk criteria should take into account the risk of deforestation associated to relevant commodities and products in the country of production, the history of compliance of operators and traders with the obligations of this Regulation and any other relevant information available to competent authorities. The risk analysis of due diligence statements should allow competent authorities the identification of operators, traders and relevant commodities and products to be checked, and should be carried out using electronic data processing techniques in the information system which collects the due diligence statements. Where necessary and technically possible, competent authorities, in close cooperation with authorities in third countries, should also conduct controls in situ.

Amendment  67

 

Proposal for a regulation

Recital 50

Text proposed by the Commission	Amendment
(50) In case the risk analysis of the due diligence statements reveals a high risk of non-compliance of specific relevant commodities and products, the competent authorities should be able to take immediate interim measures to prevent their placing or making available on the Union market. In case such relevant commodities and products were entering or leaving the Union market, the competent authorities should request from customs authorities the suspension of the release for free circulation or the export to enable competent authorities to carry out the necessary checks. Such request should be communicated by means of the interface system between customs and competent authorities. Suspension of the placing or making available on the Union market, of the release for free circulation or of export should be limited to three working days except where the competent authorities require additional time to assess the compliance of the relevant commodities and products with this Regulation. In that case, the competent authorities should take additional interim measures to extend the suspension period or request such extension to customs authorities in case of relevant commodities and products entering or leaving the Union market.	(50) In case the risk analysis of the due diligence statements reveals a high risk of non-compliance of specific relevant commodities and products, the competent authorities should be able to take immediate interim measures to prevent their placing or making available on the Union market or their export from the Union. In case such relevant commodities and products were entering or leaving the Union market, the competent authorities should request from customs authorities the suspension of the release for free circulation or the export to enable competent authorities to carry out the necessary checks. Such request should be communicated by means of the interface system between customs and competent authorities. Suspension of the placing or making available on the Union market, of the release for free circulation or of export should be limited to five working days, or 72 hours for fresh commodities and products at risk of spoilage, except where the competent authorities require additional time to assess the compliance of the relevant commodities and products with this Regulation. In that case, the competent authorities should take additional interim measures to extend the suspension period or request such extension to customs authorities in case of relevant commodities and products entering or leaving the Union market.

Amendment  68

Proposal for a regulation

Recital 50 a (new)

Text proposed by the Commission	Amendment
	(50a) Operators should support compliance by their suppliers that are smallholders with this Regulation, including through investments and capacity-building, as well as pricing mechanisms that enable a living income for the producers from which they source.

Amendment  69

Proposal for a regulation

Recital 51

Text proposed by the Commission	Amendment
(51) The plan for checks should be regularly updated on the basis of the results of its implementation. Those operators showing a consistent track record of compliance should be subject to a reduced frequency of checks.	(51) The plan for checks should be regularly updated on the basis of the results of its implementation. Those operators showing a consistent track record of compliance might be subject to a reduced frequency of checks.

Amendment  70

Proposal for a regulation

Recital 51 a (new)

Text proposed by the Commission	Amendment
	(51a) The Commission should be mandated, if it has reason to believe that a Member State does not conduct sufficient controls to ensure the enforcement of this Regulation, to introduce changes, in dialogue with that Member State, to the plan of checks in that Member State to rectify the situation.

Amendment  71

 

Proposal for a regulation

Recital 52

Text proposed by the Commission	Amendment
(52) In order to ensure implementation and effective enforcement of this Regulation, Member States should have the power to withdraw and recall non-compliant relevant commodities and products and take appropriate corrective actions. They should also ensure that infringements of this Regulation by operators and traders are sanctioned by effective, proportionate and dissuasive penalties.	(52) In order to ensure implementation and effective enforcement of this Regulation, Member States should have the power to withdraw and recall non-compliant relevant commodities and products and take appropriate corrective actions. They should also ensure that infringements of this Regulation by operators and traders are sanctioned by effective, proportionate and dissuasive penalties and that operators failing to comply with the obligations under this Regulation are liable and obliged to compensate for the harm that the exercise of due diligence would have avoided.

Amendment  72

 

Proposal for a regulation

Recital 52 a (new)

Text proposed by the Commission	Amendment
	(52a) The Commission should publish the names of operators and traders not in compliance with this Regulation. This could help other operators and traders in their risk assessments and increase the pressure from consumers and civil society on non-compliant operators and traders to source from supply chains that are free from deforestation.

Amendment  73

 

Proposal for a regulation

Recital 53

Text proposed by the Commission	Amendment
(53) Taking into account the international character of deforestation and forest degradation and related trade, competent authorities should cooperate with each other, with customs authorities of the Member States, with the Commission, as well as with the administrative authorities of third countries. Competent authorities should also cooperate with the competent authorities for the supervision and enforcement of other EU legislative instruments that set out due diligence requirements in the value chain with regard to adverse human rights or environmental impacts.	(53) Taking into account the international character of deforestation, forest degradation, forest conversion and related trade, competent authorities should cooperate with each other, with customs authorities of the Member States, with the Commission, as well as with the administrative authorities of third countries. Competent authorities should also cooperate with the competent authorities for the supervision and enforcement of other EU legislative instruments that set out due diligence requirements in the value chain with regard to adverse human rights or environmental impacts.

Amendment  74

Proposal for a regulation

Recital 53 a (new)

Text proposed by the Commission	Amendment
	(53a) In order to facilitate the access to factual, reliable and updated information on deforestation to operators, Member State authorities, and interested third country authorities, and to facilitate the compliance of economic operators with the requirements of this Regulation, the Commission should establish a platform covering the forest areas worldwide, featuring a range of tools to enable all parties to quickly move towards No-Deforestation across supply chains. The platform should include thematic maps, a land cover map with time series following the cut-off date established by this Regulation, and a range of classes allowing to examine landscape composition. The platform should also provide an alert system, relying upon a monthly monitoring of forest cover change, and a range of analyses and user-friendly and secured outputs, depicting how supply chains are linked to deforestation. In order to foster the use of the most accurate and timely information, to develop risk assessment and risk analyses, to improve checks on declarations and countries benchmarking, whilst developing a cooperative approach, the platform should be made available to all operators, Member State authorities, and interested third country authorities. The platform should use satellite imagery, including Copernicus Sentinel, which have the capability to provide the factual, reliable and updated information required.

Amendment  75

 

Proposal for a regulation

Recital 54

Text proposed by the Commission	Amendment
(54) While this Regulation addresses deforestation and forest degradation, as envisaged in the 2019 Communication ’Stepping up EU Action to Protect and Restore the World’s Forests, protecting forests should not lead to the conversion or degradation of other natural ecosystems. Ecosystems such as wetlands, savannahs and peatlands are highly significant to global efforts to combat climate change, as well as other sustainable development goals and their conversion or degradation require particular urgent attention. To address this, the Commission should assess the need and feasibility of extending the scope to other ecosystems and to further commodities two years after the entry into force. At the same time, the Commission should also undertake a review of the relevant products as listed in Annex I of this Regulation by way of a delegated act.	deleted

Amendment  76

Proposal for a regulation

Recital 55

Text proposed by the Commission	Amendment
(55) In order to ensure that information requirements with which operators have to comply and which are set out in this Regulation remain relevant and in line with scientific and technological developments, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of supplementing the information requirements necessary for the due diligence procedure, the information and criteria of risk assessment and risk mitigation with which operators have to comply which are set out in this Regulation and the list of goods set out in Annex I of this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.	(55) In order to ensure that information requirements with which operators have to comply and which are set out in this Regulation remain relevant and in line with scientific and technological developments, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of supplementing the information requirements necessary for the due diligence procedure, the information and criteria of risk assessment and risk mitigation with which operators have to comply which are set out in this Regulation and the list of goods set out in Annex I of this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level and with stakeholders, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment  77

Proposal for a regulation

Recital 57

Text proposed by the Commission	Amendment
(57) Regulation (EC) No 2173/2005 lays down Union procedures for the implementation of a FLEGT licensing scheme through bilateral Voluntary Partnership Agreements (VPAs) with timber-producing countries. To respect bilateral commitments that the European Union has entered into and to preserve the progress achieved with partner countries that have an operating system in place (FLEGT licensing stage), this Regulation should include a provision declaring wood and wood-based products covered by a valid FLEGT license as fulfilling the legality requirement under this Regulation.	(57) Regulation (EC) No 2173/2005 lays down Union procedures for the implementation of a FLEGT licensing scheme through bilateral Voluntary Partnership Agreements (VPAs) with timber-producing countries. VPAs are intended to foster systemic changes in the forestry sector aimed at sustainable management of forests, eradicating illegal logging and supporting worldwide efforts to stop deforestation. VPAs provide an important legal framework for both the Union and its partner countries, made possible with the good cooperation and engagement by the countries concerned. New VPAs with additional partners should be promoted. This Regulation should build upon the work done under Regulation (EC) No 2173/2005 that continues to serve as an important mechanism to protect the world’s forests. To respect bilateral commitments that the European Union has entered into and to preserve the progress achieved with partner countries that have an operating system in place (FLEGT licensing stage) and incentivise other partners to work towards reaching this stage, this Regulation should include a provision declaring wood and wood-based products covered by a valid FLEGT license as fulfilling the legality requirement under this Regulation, thus ensuring that this part of the due diligence requirement will be easily verified. The VPA partnerships should be supported with adequate resources and specific administrative and capacity building support. Regulation (EC) No 2173/2005 will also remain an important system to provide frameworks for multi-stakeholder consultations.

Amendment  78

Proposal for a regulation

Recital 57 a (new)

Text proposed by the Commission	Amendment
	(57a) The Commission should assist LDCs and SMEs in their understanding and implementation of, and compliance with, the standards set out in this Regulation, keeping cooperation open towards capacity-building with national, regional and local governments, civil society organisations and producers, especially small producers.

Amendment  79

 

Proposal for a regulation

Recital 58

Text proposed by the Commission	Amendment
(58) While this Regulation addresses deforestation and forest degradation, as envisaged in the 2019 Communication ’Stepping up EU Action to Protect and Restore the World’s Forests, protecting forests should not lead to the conversion or degradation of other natural ecosystems. Ecosystems such as wetlands, savannahs and peatlands are highly significant to global efforts to combat climate change, as well as other sustainable development goals and their conversion or degradation require particular urgent attention. An evaluation of the need and the feasibility of extending the scope of this Regulation to other ecosystems than forests should therefore be undertaken within 2 years of the entry into force of this Regulation.	(58) While this Regulation addresses deforestation, forest degradation and forest conversion, as envisaged in the 2019 Communication ’Stepping up EU Action to Protect and Restore the World’s Forests, protecting forests should not lead to the conversion or degradation of other natural ecosystems. Ecosystems such as wetlands, savannahs and peatlands are highly significant to global efforts to combat climate change and the biodiversity crisis, as well as other sustainable development goals and their conversion or degradation require particular urgent action and need to be prevented. There is no doubt that Union consumption is a considerable driver also of the conversion and degradation of biodiverse and carbon-rich non-forest ecosystems around the globe. In order to reduce the Union’s footprint on all natural ecosystems, an evaluation of, and a legislative proposal to, extending the scope of this Regulation to other ecosystems than forests and other wooded land should be undertaken at the latest one year of the entry into force of this Regulation, for which the preparations should start at the latest at the day of entry into force of this Regulation. Further delaying to include other ecosystems in this Regulation risks shifting agricultural production from forests to non-forest ecosystems. The latter are also increasingly under pressure of conversion and degradation due to commodity production for the Union market. The Commission should also assess the need and feasibility of extending the scope to further commodities at the latest two years after the date of entry into force of this Regulation. At the same time, the Commission should also undertake a review of the relevant products listed in Annex I to this Regulation by way of delegated act.

Amendment  80

 

Proposal for a regulation

Recital 58 a (new)

Text proposed by the Commission	Amendment
	(58a) Taking into account the request made by the European Parliament in its resolution ‘An EU legal framework to halt and reverse EU-driven global deforestation’ of 22 October 2020 and of the vast majority of the almost 1,2 million participants to the Commission’s public consultation on demand-driven deforestation and forest degradation and forest conversion to include non-forest ecosystems in this Regulation, the Commission should base its evaluation and legislative proposal for an extension of the scope of this Regulation to other ecosystems on the basis of the definitions of ‘natural ecosystems’, ‘natural ecosystem conversion’ and ‘forest and natural ecosystem degradation” and the cut-off date of 31 December 2019, as laid down in this Regulation.

Amendment  81

 

Proposal for a regulation

Recital 60

Text proposed by the Commission	Amendment
(60) Since the objective of this Regulation, fighting against deforestation and forest degradation by reducing the contribution of consumption in the Union, cannot be achieved by the Member States individually and can therefore, by reason of its scale, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.	(60) Since the objective of this Regulation, fighting against deforestation, forest degradation and forest conversion by reducing the contribution of consumption in the Union and by incentivising deforestation reduction in producer countries, cannot be achieved by the Member States individually and can therefore, by reason of its scale, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

Amendment  82

 

Proposal for a regulation

Recital 61

Text proposed by the Commission	Amendment
(61) Operators, traders and competent authorities should be given a reasonable period in order to prepare themselves to meet the requirements of this Regulation,	(61) In order to avoid supply chain disruptions and reduce negative impacts on third countries, trade partners, and in particular smallholders, operators, traders and competent authorities should be given a reasonable period in order to prepare themselves to meet the requirements of this Regulation,

Amendment  83

 

Proposal for a regulation

Article 1 – paragraph 1 – introductory part

Text proposed by the Commission	Amendment
This Regulation lays down rules regarding the placing and making available on the Union market, as well as the export from the Union market, of cattle, cocoa, coffee, oil palm, soya and wood (“relevant commodities”) and products, as listed in Annex I, that contain, have been fed with or have been made using relevant commodities (“relevant products”), with a view to	This Regulation lays down rules regarding the placing and making available on the Union market, as well as the export from the Union market, of cattle, swine, sheep and goats, poultry, cocoa, coffee, oil palm and palm-oil based derivates, soya, maize, rubber, and wood (“relevant commodities”), and products, including charcoal and printed paper products, as listed in Annex I, that contain, have been fed with or have been made using relevant commodities (“relevant products”), with a view to:

Amendment  84

 

Proposal for a regulation

Article 1 – paragraph 1 – point a

Text proposed by the Commission	Amendment
(a) minimising the Union’s contribution to deforestation and forest degradation worldwide	(a) minimising the Union’s contribution to deforestation. forest degradation and forest conversion worldwide;

Amendment  85

Proposal for a regulation

Article 1 – paragraph 1 – point b

Text proposed by the Commission	Amendment
(b) reducing the European Union’s contribution to greenhouse gas emissions and global biodiversity loss.	(b) reducing the European Union’s contribution to greenhouse gas emissions and global biodiversity loss;

Amendment  86

 

Proposal for a regulation

Article 1 – paragraph 1 – point b a (new)

Text proposed by the Commission	Amendment
	(ba) contributing to a reduction in global deforestation;

Amendment  87

Proposal for a regulation

Article 1 – paragraph 1 a (new)

Text proposed by the Commission	Amendment
	This Regulation also lays down obligations for financial institutions headquartered or operating in the Union that provide financial services to natural or legal persons whose economic activities consist, or are linked to, the production, supply, placing on or export from the Union market of the relevant commodities and products within the meaning of this Article.

Amendment  88

 

Proposal for a regulation

Article 2 – paragraph 1 – point 1

Text proposed by the Commission	Amendment
(1) ‘deforestation’ means the conversion of forest to agricultural use, whether human-induced or not;	(1) ‘deforestation’ means conversion, whether human-induced or not, of forests or other wooded land to agricultural use or to plantation forest;

Amendment  89

 

Proposal for a regulation

Article 2 – paragraph 1 – point 1 a (new)

Text proposed by the Commission	Amendment
	(1a) ‘ecosystem conversion’ means the change of a natural ecosystem to another land use or change in a natural ecosystem’s species composition, structure or function; this includes severe degradation or the introduction of management practices that result in a substantial and sustained change in the ecosystem’s species composition, structure or function;

Amendment  90

 

Proposal for a regulation

Article 2 – paragraph 1 – point 2 a (new)

Text proposed by the Commission	Amendment
	(2a) ‘agricultural use’ means the use of land for any or more of the following: cultivation of temporary or annual crops that have a growing cycle of one year or less; cultivation of permanent or perennial crops that have a growing cycle of more than one year, including tree crops; cultivation of permanent or temporary meadows or pastures as well as animal husbandry; and temporarily fallow land;

Amendment  91

 

Proposal for a regulation

Article 2 – paragraph 1 – point 2 b (new)

Text proposed by the Commission	Amendment
	(2b) 'other wooded land' means land not classified as forest, spanning more than 0,5 hectares, with trees higher than 5 metres and a canopy cover of 5 to 10 percent, or trees able to reach these thresholds in situ, or with a combined cover of shrubs, bushes and trees above 10 percent, excluding land that is predominantly under agricultural or urban use;

Amendment  92

 

Proposal for a regulation

Article 2 – paragraph 1 – point 5 a (new)

Text proposed by the Commission	Amendment
	(5a) ‘natural ecosystem’ means an ecosystem, including a human-managed ecosystem, that substantially resembles, in terms of species composition, structure, and ecological function, an ecosystem that is or would be found in a given area in the absence of major human impacts; this includes, in particular, land with high carbon stocks and land with a high biodiversity value;

Amendment  93

 

Proposal for a regulation

Article 2 – paragraph 1 – point 6

Text proposed by the Commission	Amendment
(6) ‘forest degradation’ means harvesting operations that are not sustainable and cause a reduction or loss of the biological or economic productivity and complexity of forest ecosystems, resulting in the long-term reduction of the overall supply of benefits from forest, which includes wood, biodiversity and other products or services;	(6) ‘forest and other natural ecosystem degradation’ means the reduction or loss of biological or economic productivity and complexity of forests and other wooded land and other natural ecosystems, affecting their species composition, structure or function, whether or not directly caused by humans; this includes illegal exploitation of forests, other wooded land or other natural ecosystems as well as the use of management practices that result in a substantial or sustained impact on their capacity to support biodiversity or deliver ecosystem services;

Amendment  94

 

Proposal for a regulation

Article 2 – paragraph 1 – point 7

Text proposed by the Commission	Amendment
(7) ‘sustainable harvesting operations’ means harvesting that is carried out considering maintenance of soil quality and biodiversity with the aim of minimising negative impacts, in a way that avoids harvesting of stumps and roots, degradation of primary forests or their conversion into plantation forests, and harvesting on vulnerable soils; minimises large clear-cuts and ensures locally appropriate thresholds for deadwood extraction and requirements to use logging systems that minimise impacts on soil quality, including soil compaction, and on biodiversity features and habitats;	deleted

Amendment  95

 

Proposal for a regulation

Article 2 – paragraph 1 – point 8

Text proposed by the Commission	Amendment
(8) deforestation-free’ means	(8) ‘deforestation-free’ means that the relevant commodities and products, including those used for or contained in relevant products, were produced on land that has not been subject to deforestation, and have not induced or contributed to forest degradation or forest conversion after 31 December 2019;
(a) that the relevant commodities and products, including those used for or contained in relevant products, were produced on land that has not been subject to deforestation after December 31, 2020, and
(b)  that the wood has been harvested from the forest without inducing forest degradation after December 31, 2020;

 

 

 

Amendment  96

 

Proposal for a regulation

Article 2 – paragraph 1 – point 16

Text proposed by the Commission	Amendment
(16) ‘negligible risk’ means a full assessment of both the product-specific and the general information on compliance with Articles 3(a) and 3(b) by relevant commodities or products showing no cause for concern;	(16) ‘negligible risk’ means the level of risk that applies to relevant commodities and products to be placed on, or exported from, the Union market where these commodities or products show no cause for concern on grounds of a full assessment of both the product-specific and the general information on compliance with Article 3 and the application of the appropriate mitigation measures;

Amendment  97

 

Proposal for a regulation

Article 2 – paragraph 1 – point 16 a (new)

Text proposed by the Commission	Amendment
	(16a) ‘meaningful engagement with stakeholders’ means understanding the concerns and interests of relevant stakeholders, in particular the most vulnerable groups such as smallholders and indigenous peoples, as well as local communities, including women, by consulting them directly in a manner that takes into account potential barriers to effective engagement;

Amendment  98

 

Proposal for a regulation

Article 2 – paragraph 1 – point 18

Text proposed by the Commission	Amendment
(18) ‘non-compliant products’ means relevant commodities and products that were not produced in a ‘deforestation-free’ manner, or were not produced in accordance with the relevant legislation of the country of production, or both;	(18) ‘non-compliant products’ means relevant commodities and products that were not produced in a ‘deforestation-free’ manner, or were not produced in accordance with the relevant laws and standards, including those on the rights of indigenous peoples, tenure rights of local communities, and the right to free, prior and informed consent, and which were not covered by an accurate due diligence statement;

Amendment  99

 

Proposal for a regulation

Article 2 – paragraph 1 – point 21

Text proposed by the Commission	Amendment
(21) ‘substantiated concern' means well-founded claim based on objective and verifiable information regarding non-compliance with the present Regulation and which may require the intervention of competent authorities;	(21) ‘substantiated concern' means a claim based on objective and verifiable information regarding non-compliance with the present Regulation and which may require the intervention of competent authorities;

Amendment  100

 

Proposal for a regulation

Article 2 – paragraph 1 – point 28

Text proposed by the Commission	Amendment
(28) ‘relevant legislation of the country of production’ means the rules applicable in the country of production concerning the legal status of the area of production in terms of land use rights, environmental protection, third parties’ rights and relevant trade and customs regulations under legislation framework applicable in the country of production;	(28) ‘relevant laws and standards’ means:
	(a)  the rules applicable in the country of production concerning the legal status of the area of production in terms of land use rights, environmental protection, third parties’ rights and relevant trade and customs regulations under legislation framework applicable in the country of production;
	(b)  human rights protected under international law, in particular instruments protecting customary tenure rights and the right to free, prior and informed consent (FPIC), as set out in, inter alia, the UN Declaration on the Rights of Indigenous Peoples, the UN Permanent Forum on Indigenous Issues and existing binding international agreements, the Indigenous and Tribal Peoples Convention (No 169, 1989), which cover the right to environmental protection, the right to defend the environment, free from any form of persecution and harassment, and other internationally recognised human rights related to land use, access or ownership;

Amendment  101

 

Proposal for a regulation

Article 2 – paragraph 1 – point 28 a (new)

Text proposed by the Commission	Amendment
	(28a) ‘free, prior and informed consent (FPIC)’ means a collective human right of indigenous peoples and local communities to give and withhold their consent prior to the commencement of any activity that may affect their rights, land, resources, territories, livelihoods, and food security; it is a right exercised through representatives of their own choosing and in a manner consistent with their own customs, values, and norms.

Amendment  102

Proposal for a regulation

Article 2 – paragraph 1 – point 28 b (new)

Text proposed by the Commission	Amendment
	(28b) ‘human rights defenders’ means individuals, groups and organs of society that promote and protect universally recognised human rights and fundamental freedoms; human rights defenders seek the promotion and protection of civil and political rights as well as the promotion, protection and realisation of economic, social and cultural rights; human rights defenders also promote and protect the rights of members of groups such as indigenous communities;

Amendment  103

Proposal for a regulation

Article 2 – paragraph 1 – point 28 c (new)

Text proposed by the Commission	Amendment
	(28c) ‘environmental human rights defenders’ means individuals and groups who, in their personal or professional capacity and in a peaceful manner, strive to protect and promote human rights relating to the environment, including water, air, land, flora and fauna;

Justification

As they are key agents to achieve deforestation and conversion-free supply chains, they should receive protection in the context of the new regulation, as broadly requested in the resolution of 22 October 2020, on an EU legal Framework to halt and reverse EU-driven global deforestation. A definition is therefore required in line with the 2016 UN definition.

Amendment  104

 

Proposal for a regulation

Article 3 – paragraph 1 – point b

Text proposed by the Commission	Amendment
(b) they have been produced in accordance with the relevant legislation of the country of production; and	(b) they have been produced in accordance with the relevant laws and standards, as defined in Article 2, point (28); and

Amendment  105

Proposal for a regulation

Article 3 a (new)

Text proposed by the Commission	Amendment
	Article 3a
	Financial institutions shall provide financial services to customers only when thefinancial institutions conclude that there is no more than a negligible risk that the services in question potentially provide support directly or indirectly to activities leading to deforestation, forest degradation or forest conversion.

Amendment  106

 

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the Commission	Amendment
1. Operators shall exercise due diligence prior to placing relevant commodities and products on or prior to their export from the Union market in order to ensure their compliance with Article 3(a) and (b). To that end, they shall use a framework of procedures and measures, hereinafter referred to as a ‘due diligence’, as set out in Article 8.	1. Operators shall exercise due diligence prior to placing relevant commodities and products on or prior to their export from the Union market in order to ensure their compliance with Article 3. To that end, they shall use a framework of procedures and measures, hereinafter referred to as a ‘due diligence’, as set out in Article 8.

Amendment  107

 

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission	Amendment
2. Operators that by exercising due diligence as referred to in Article 8 have come to the conclusion that the relevant commodities and products comply with the requirements of this Regulation shall make available to the competent authorities via the information system referred to in Article 31 a due diligence statement before placing on the Union market or exporting the relevant commodities and products. That statement shall confirm that due diligence was carried out and no or only negligible risk was found and shall contain the information set out in Annex II for the relevant commodities and products.	2. Operators that by exercising due diligence as referred to in Article 8 have come to the conclusion that the relevant commodities and products comply with the requirements of this Regulation shall make available to the competent authorities via the information system referred to in Article 31 a due diligence statement before placing on the Union market or exporting the relevant commodities and products. That electronically available, transmittable and certified statement shall confirm that due diligence was carried out, disclose the steps that were taken in this regard to verify the compliance of the relevant commodities and products with this Regulation, and explain the assessment as to why no or only negligible risk was found. It shall also contain the information set out in Annex II for the relevant commodities and products. Operators shall, without undue delay, publish and make available the statements and certification for administrative, civic and scientific scrutiny, taking into account data protection rules,.

Amendment  108

 

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission	Amendment
3. By making available the due diligence statement, the operator assumes responsibility for the compliance of the relevant commodity or product with the requirements of this Regulation. Operators shall keep record of the due diligence statements for 5 years from the date of making available via the information system referred to in Article 31.	3. The operator assumes responsibility for the compliance of the relevant commodity or product with the requirements of this Regulation. Operators shall therefore undertake reasonable, documented efforts to support the compliance of smallholders with the provisions and requirements set out in this Regulation. They shall keep record of the due diligence statements for 5 years from the date of making available via the information system referred to in Article 31 and share the due diligence statements with subsequent operators and traders in the supply chain.

Amendment  109

 

Proposal for a regulation

Article 4 – paragraph 5 – point a

Text proposed by the Commission	Amendment
(a) the relevant commodities and products are not compliant with Article 3(a) or (b);	(a) the relevant commodities and products are not compliant with Article 3;

Amendment  110

 

Proposal for a regulation

Article 4 – paragraph 5 – point b

Text proposed by the Commission	Amendment
(b) the exercise of due diligence has revealed a non-negligible risk that the relevant commodities and products are not compliant with Article 3(a) or (b);	(b) the exercise of due diligence has revealed a non-negligible risk that the relevant commodities and products are not compliant with Article 3;

 

Amendment  111

 

Proposal for a regulation

Article 4 – paragraph 5 a (new)

Text proposed by the Commission	Amendment
	5a. Operators shall have a system in place for receiving substantiated concerns from interested parties and shall thoroughly investigate all substantiated concerns introduced in accordance with that system.

Amendment  112

 

Proposal for a regulation

Article 4 – paragraph 6

Text proposed by the Commission	Amendment
6. Operators that have received new information, including substantiated concerns, that the relevant commodity or product that they have already placed on the market is not in conformity with the requirements of this Regulation shall immediately inform the competent authorities of the Member States in which they placed the relevant commodity or product on the market. In the case of exports from the Union market, the operators shall inform the competent authority of Member State which is the country of production.	6. Operators that have received or detected relevant new information, including substantiated concerns, or information provided via the rapid alert mechanisms, that indicate a non-negligible risk that the relevant commodity or product that they have already placed on the market is at risk of not being in conformity with the requirements of this Regulation shall immediately inform the competent authorities of the Member States in which they placed the relevant commodity or product on the market, as well as traders to whom they have supplied the relevant commodity or product with a view to preventing further circulation on, or export from, the Union market. In the case of exports from the Union market, the operators shall inform the competent authority of Member State which is the country of production.

Amendment  113

 

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission	Amendment
7. Operators shall offer all assistance necessary to competent authorities to facilitate the performance of the checks under Article 15, including as regards access to premises and the presentation of documentation or records.	7. The competent authorities shall verify the due diligence system of operators on an annual basis. Operators shall also offer all assistance necessary to competent authorities to facilitate the performance of the checks under Article 15, including as regards access to premises and the presentation of documentation or records.

Amendment  114

 

Proposal for a regulation

Article 4 – paragraph 7 a (new)

Text proposed by the Commission	Amendment
	7a. Operators shall take the necessary measures:
	(a) to engage meaningfully with vulnerable stakeholders, such as smallholders, indigenous peoples and local communities, in their supply chain;
	(b) to ensure that those vulnerable stakeholders receive adequate assistance and fair remuneration so that their commodities and products can comply with the rules, in particular with regard to the geolocation requirement, and to ensure that the costs resulting from the implementation of this Regulation are fairly shared among the different actors in the value chain; and
	(c) to follow through on implementation of agreed commitments, ensuring that adverse impacts on identified vulnerable stakeholders are addressed.

Amendment  115

 

Proposal for a regulation

Article 4 a (new)

Text proposed by the Commission	Amendment
	Article 4a
	Obligations of traders and exemptions for SME traders
	1. Traders which are SMEs may only make available relevant commodities and products on the market if they are in possession of the information required under paragraph 3.
	2. Traders which are not SMEs shall be considered to be operators and shall be subject to the obligations and provisions set out in Articles 3, 4, 5, 8 to 12, Article 14(9), and Articles 15 and 20 of this Regulation with regard to the relevant commodities and products they make available in the Union market.
	3. Traders which are SMEs shall collect and keep the following information relating to the relevant commodities and products they intend to make available on the market:
	(a) the name, registered trade name or registered trade mark, postal address, email and, if available, a web address of the operators or the traders who have supplied the relevant commodities and products to them;
	(b) the name, registered trade name or registered trade mark, postal address, email and, if available, a web address of the traders to whom they have supplied the relevant commodities and products.
	4. Traders which are SMEs shall keep the information referred to in this Article for at least 5 years and shall provide that information to the competent authorities upon request.
	5. Traders which are SMEs that have received or detected relevant new information, including substantiated concerns, which indicates a non-negligible risk that the relevant commodity or product that they have already made available on the market is not in conformity with the requirements of this Regulation, shall immediately inform the competent authorities of the Member States in which they made available on the market the relevant commodity or product.
	6. Traders, whether or not they are SMEs, shall offer all assistance necessary to competent authorities to facilitate the performance of the checks under Article 16, including as regards access to premises and the presentation of documentation or records.
	7. The Commission may provide SMEs which do not have the means to meet the requirements under this Article with technical assistance.

Amendment  116

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission	Amendment
2. The authorised representative shall, upon request, provide a copy of the mandate in an official language of the European Union to the competent authorities.	2. The authorised representative shall, upon request, provide a copy of the mandate in an official language of the European Union to the competent authorities and a copy in the language of the Member State in which the due diligence statement is handled or, failing that, in English.

 

 

Amendment  117

 

Proposal for a regulation

Article 6

Text proposed by the Commission	Amendment
Article 6	Deleted
Obligations of traders
1. Traders which are SMEs may only make available on the market relevant commodities and products if they are in possession of the information required under paragraph 2.
2. Traders which are SMEs shall collect and keep the following information relating to the relevant commodities and products they intend to make available on the market:
(a) the name, registered trade name or registered trade mark, the postal address, the email and, if available, a web address of the operators or the traders who have supplied the relevant commodities and products to them;
(b) the name, registered trade name or registered trade mark, the postal address, the email and, if available, a web address of the traders to whom they have supplied the relevant commodities and products.
3. Traders which are SMEs shall keep the information referred to in this Article for at least 5 years and shall provide that information to the competent authorities upon request.
4. Traders which are SMEs that have received new information, including substantiated concerns, that the relevant commodity or product that they have already made available on the market is not in conformity with the requirements of this Regulation shall immediately inform the competent authorities of the Member States in which they made available the relevant commodity or product on the market.
5. Traders which are not SMEs shall be considered operators and be subject to obligations and provisions in Articles 3, 4, 5, 8 to 12, 14(9), 15 and 20 of this Regulation with regard to the relevant commodities and products that they make available in the Union market.
6. Traders shall offer all assistance necessary to competent authorities to facilitate the performance of the checks under Article 16, including as regards access to premises and the presentation of documentation or records.

Amendment  118

 

Proposal for a regulation

Article 7 – paragraph 1

Text proposed by the Commission	Amendment
Article 7	Article 7
Placing on the market by operators established in third countries	Placing on the market by operators established in third countries
In case a natural or legal person established outside the Union places on the Union market relevant commodities and products, the first natural or legal person established in the Union who buys or takes possession of such relevant commodities and products shall be considered operator within the meaning of this Regulation.	In case a natural or legal person, regardless of size, established outside the Union places on the Union market relevant commodities and products, the first natural or legal person established in the Union who buys or takes possession of such relevant commodities and products shall be considered operator within the meaning of this Regulation.
	If no manufacturer or importer is established in the Union, online marketplaces shall comply with the obligations set out in Articles 8 to 11 for products and commodities for which they facilitate the sale.

Amendment  119

 

Proposal for a regulation

Article 8 – paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Product components that have already undergone due diligence compliance in accordance with Article 4(1) shall not require an additional due diligence procedure. For components that have not been covered by a due diligence procedure, the due diligence requirements shall still apply.

Amendment  120

 

Proposal for a regulation

Article 9 – paragraph 1 – introductory part

Text proposed by the Commission	Amendment
Operators shall collect information, documents and data demonstrating that the relevant commodities and products are compliant with Article 3. For this purpose, the operator shall collect, organise and keep for 5 years the following information relating to the relevant commodities or products, supported by evidence:	Operators shall collect information, documents and data demonstrating that the relevant commodities and products are compliant with Article 3. For this purpose, the operator shall collect, organise and keep for 5 years the following information relating to each relevant commodity or product placed on the Union market or exported from the Union, supported by evidence:

Amendment  121

 

Proposal for a regulation

Article 9 – paragraph 1 – point a

Text proposed by the Commission	Amendment
(a) description, including the trade name and type of relevant commodities and products as well as, where applicable, the common name of the species and its full scientific name;	(a) description, including the trade name and type of relevant commodities and products as well as, where applicable, the common name of the species and its full scientific name; the product description shall include the list of commodities contained therein or used to make those products; for animal products the description shall include the list of commodities used to feed the animals;

Amendment  122

 

Proposal for a regulation

Article 9 – paragraph 1 – point c

Text proposed by the Commission	Amendment
(c) identification of the country of production;	(c) identification of the country of production or parts thereof;

Amendment  123

 

Proposal for a regulation

Article 9 – paragraph 1 – point d

Text proposed by the Commission	Amendment
(d) geo-localisation coordinates, latitude and longitude of all plots of land where the relevant commodities and products were produced, as well as date or time range of production;	(d) geolocation coordinates, latitude and longitude for all plots of land where the relevant commodities and products were produced, or the geolocation coordinates, latitude and longitude of all points of a polygon for the plots of land where the relevant commodities and products were produced; any deforestation or degradation in the given plots of land, either identified by a single point of latitude and longitude or by polygon, shall automatically disqualify all products and commodities from those plots of land from being placed and made available on the market or exported therefrom; operators shall provide the date or time range or harvesting season of production of the commodity or product; the Commission is empowered to adopt delegated acts in order to supplement this Regulation with regard to the size of the plots of land above which companies are required to provide polygons as the only means of geolocation for the relevant commodities and products;

Amendment  124

 

Proposal for a regulation

Article 9 – paragraph 1 – point h

Text proposed by the Commission	Amendment
(h) adequate and verifiable information that the production has been conducted in accordance with relevant legislation of the country of production, including any arrangement conferring the right to use the respective area for the purposes of the production of the relevant commodity;	(h) adequate and verifiable information that the production has been conducted in accordance with relevant legislation of the country of production as well as the relevant laws and standards, as defined in Article 2, point (28);

Amendment  125

 

Proposal for a regulation

Article 9 – paragraph 1 – point h a (new)

Text proposed by the Commission	Amendment
	(ha) adequate and verifiable information, obtained via independent audits and appropriate consultation processes, that the area used for the purpose of producing the relevant commodities and products is not subject to any claims on the basis of indigenous, customary or other legitimate tenure rights or subject to any dispute regarding their use, ownership or occupation;

Amendment  126

 

Proposal for a regulation

Article 9 – paragraph 1 – point h b (new)

Text proposed by the Commission	Amendment
	(hb) adequate and verifiable information disclosing the views of any indigenous peoples, local communities and other groups that claim tenure rights in respect of the area used for the purpose of producing the relevant commodities and products regarding the production of those relevant commodities and products;

Amendment  127

Proposal for a regulation

Article 9 – paragraph 1 a (new)

Text proposed by the Commission	Amendment
	1a. Financial institutions shall collect the information, documents and data demonstrating that the provision of financial services to customers complies with Article 11a. The information, documents and data shall include, at least:
	(a)  a description of the customer’s economic activities, of the activities of entities controlled by the customer, of the economic activities of the customers’ suppliers;
	(b)  information on the relevant commodities and products placed on, made available on or exported from the Union market and on the related exercise of due diligence under this Regulation;
	(c)  use, for the activities under point (a) of relevant commodities and products, including information on the relevant commodities and products effectively used and on the related exercise of due diligence under this Regulation;
	(d)  policies adopted, and implemented by the customer and by the entities and suppliers referred to under point (a) with a view to ensuring that their activities do not cause deforestation, forest degradation or forest conversion;
	(e)  identification of the country of production and geo-localisation coordinates, latitude and longitude of all plots of land where the relevant commodities and products are to be produced;

Amendment  128

 

Proposal for a regulation

Article 9 – paragraph 3

Text proposed by the Commission	Amendment
3. The Commission may adopt delegated acts in accordance with Article 33 to supplement paragraph 1 concerning further relevant information to be obtained that may be necessary to ensure the effectiveness of the due diligence system.	deleted

Amendment  129

Proposal for a regulation

Article 9 – paragraph 3 a (new)

Text proposed by the Commission	Amendment
	3a. The Commission may adopt delegated acts in accordance with Article 33 to supplement paragraph 1 and paragraph 1a concerning further relevant information to be obtained that may be necessary to ensure the effectiveness of the due diligence system.

Amendment  <NumAm>130<DocAmend>Proposal for a regulation</DocAmend>

Article 10 – paragraph 1

Text proposed by the Commission	Amendment
1. Operators shall verify and analyse information collected in accordance with Article 9 and any other relevant documentation, and on this basis carry out a risk assessment to establish whether there is a risk that the relevant commodities and products intended to be placed on or exported from the Union market are non-compliant with the requirements of this Regulation. If the operators cannot demonstrate that the risk of non-compliance is negligible, they shall not place the relevant commodity or product on the Union market nor export it.	1. Operators and financial institutions shall verify and analyse information collected in accordance with Article 9 and any other relevant documentation, and on this basis carry out a risk assessment to establish whether there is a risk that the relevant commodities and products intended to be placed on or exported from the Union market are non-compliant with the requirements of this Regulation. Where an operator is not able to adequately collect the information required by this Regulation, it shall have the right to request clarification or assistance on implementation from the competent authority. If the operators cannot demonstrate that the risk of non-compliance is negligible, they shall not place the relevant commodity or product on the Union market nor export it. If the financial institutions cannot conclude that the risk of non-compliance is negligible, they shall not provide financial services to the concerned customers.

</Amend>Amendment  131

 

Proposal for a regulation

Article 10 – paragraph 2 – point b a (new)

Text proposed by the Commission	Amendment
	(ba) the presence of vulnerable peoples, indigenous peoples, local communities and other customary tenure rights holders in the country and part thereof of the relevant commodity or product;

Amendment  132

 

Proposal for a regulation

Article 10 – paragraph 2 – point b b (new)

Text proposed by the Commission	Amendment
	(bb) the existence of claims to or disputes regarding the use of, ownership of, or exercise of customary tenure rights on the area used for the purpose of producing the relevant commodity or product, whether formally registered or not;

Amendment  133

 

Proposal for a regulation

Article 10 – paragraph 2 – point c

Text proposed by the Commission	Amendment
(c) prevalence of deforestation or forest degradation in the country, region and area of production of the relevant commodity or product;	(c) prevalence of deforestation, forest degradation or forest conversion in the country, region and area of production of the relevant commodity or product;

Amendment  134

 

Proposal for a regulation

Article 10 – paragraph 2 – point e

Text proposed by the Commission	Amendment
(e) concerns in relation to the country of production and origin, such as level of corruption, prevalence of document and data falsification, lack of law enforcement, armed conflict or presence of sanctions imposed by the United Nations Security Council or the Council of the European Union;	(e) concerns in relation to the country of production or parts thereof in accordance with Article 27, and origin, such as level of corruption, prevalence of document and data falsification, absence, violation or lack of law enforcement of tenure rights and rights of indigenous people and local communities, armed conflict or presence of sanctions imposed by the United Nations Security Council or the Council of the European Union;

Amendment  135

 

Proposal for a regulation

Article 10 – paragraph 2 – point f

Text proposed by the Commission	Amendment
(f) the complexity of the relevant supply chain, in particular difficulties in connecting commodities and/or products to the plot of land where they were produced;	(f) the complexity of the relevant supply chain, in particular difficulties in connecting commodities and/or products to the plot of land where they were produced or national data protection rules which prohibit the transmission of such data;

Amendment  136

 

Proposal for a regulation

Article 10 – paragraph 2 – point g

Text proposed by the Commission	Amendment
(g) the risk of mixing with products of unknown origin or produced in areas where deforestation or forest degradation has occurred or is occurring;	(g) the risk of mixing with products of unknown origin or produced in areas where deforestation, forest degradation or forest conversion as well as violations of the relevant law has occurred or is occurring;

Amendment  137

 

Proposal for a regulation

Article 10 – paragraph 2 – point h a (new)

Text proposed by the Commission	Amendment
	(ha) the outcome of multi-stakeholder dialogues where impacted parties, such as smallholders, SMEs, indigenous peoples and local communities, have been invited to actively participate;

Amendment  138

 

Proposal for a regulation

Article 10 – paragraph 2 – point i a (new)

Text proposed by the Commission	Amendment
	(ia) information provided via the rapid alert mechanism;

Amendment  139

 

Proposal for a regulation

Article 10 – paragraph 3

Text proposed by the Commission	Amendment
3. Wood products which are in scope of Council Regulation (EC) No 2173/2005 that are covered by a valid FLEGT license from an operational licensing scheme shall be deemed to be in compliance with Article 3(b) of this Regulation.	3. Wood products which are in scope of Council Regulation (EC) No 2173/2005 that are covered by a valid FLEGT license from an operational licensing scheme shall be deemed to be in compliance with the rules applicable in the country of production, as laid down in Article 3 and as defined in Article 2 point (28) (a), of this Regulation.

Amendment  140

 

Proposal for a regulation

Article 10 – paragraph 4

Text proposed by the Commission	Amendment
4. Except where the analysis undertaken in accordance with paragraph 1 allows the operator to ascertain that there is no or negligible risk that the relevant commodities or products are not compliant with the requirements of this Regulation, the operator shall adopt prior to placing the relevant commodities and products on the Union market or to their export risk mitigation procedures and measures that are adequate to reach no or negligible risk. This may include requiring additional information, data or documents, undertaking independent surveys or audits or other measures pertaining to information requirements set out in Article 9.	4. Except where the analysis undertaken in accordance with paragraph 1 allows the operator to ascertain that there is no or negligible risk that the relevant commodities or products are not compliant with the requirements of this Regulation, the operator shall adopt prior to placing the relevant commodities and products on the Union market or to their export risk mitigation procedures and measures that are adequate to reach no or negligible risk. This may include requiring additional information, data or documents, undertaking independent surveys or audits, capacity-building and financial investments for smallholders or other measures pertaining to information requirements set out in Article 9.

Amendment  141

 

Proposal for a regulation

Article 10 – paragraph 4 a (new)

Text proposed by the Commission	Amendment
	4a. Where relevant, operators shall ensure that risk assessments and mitigation measures are adopted which provide for the participation and consultation of indigenous peoples, local communities, and other customary tenure rights holders that are present in the area of production of the relevant commodities and products.

Amendment  142

 

Proposal for a regulation

Article 10 – paragraph 6 – point a

Text proposed by the Commission	Amendment
(a) model risk management practices, reporting, record-keeping, internal control and compliance management, including for operators that are not SMEs, the appointment of a compliance officer at management level;	(a) model risk management practices, reporting, record-keeping, internal control and compliance management, including for operators that are not SMEs, the appointment of a compliance officer at management level, specifying the contact details or an up-to-date contact email address;

Amendment  143

 

Proposal for a regulation

Article 10 – paragraph 7

Text proposed by the Commission	Amendment
7. The risk assessments shall be documented, reviewed at least on an annual basis and made available to the competent authorities upon request.	7. The risk assessments, as well as, where appropriate, the risk mitigation decisions taken shall be documented, reviewed at least on an annual basis and made available to the competent authorities upon request.

Amendment  144

 

Proposal for a regulation

Article 11 – paragraph 1

Text proposed by the Commission	Amendment
1. In order to exercise due diligence in accordance with Article 8, operators shall establish and keep up to date a due diligence system to ensure that they can guarantee compliance with the requirements set out in Article 3(a) and (b). The due diligence system shall be reviewed at least once a year and if necessary adapted to and accounting for new developments which may influence the exercise of due diligence. Operators shall keep record of updates in the due diligence system(s) for 5 years.	1. In order to exercise due diligence in accordance with Article 8, operators shall establish and keep up to date a due diligence system to ensure that they can guarantee compliance with the requirements set out in Article 3. The due diligence system shall be reviewed at least once a year and adapted to and accounting for new developments which may influence the exercise of due diligence when operators become aware of them. Operators shall keep record of updates in the due diligence system(s) for 5 years.

Amendment  145

 

Proposal for a regulation

Article 11 – paragraph 2

Text proposed by the Commission	Amendment
2. Unless otherwise provided by other EU legislative instruments that lay down requirements regarding sustainability value chain due diligence, operators which are not SMEs shall, on an annual basis, publicly report as widely as possible, including on the internet, on their due diligence system including on the steps taken by them to implement their obligations as set out in Article 8. Operators falling also within the scope of other EU legislative instruments that lay down requirements regarding value chain due diligence may fulfil their reporting obligations under this paragraph by including the required information when reporting in the context of other EU legislative instruments.	2. Operators shall, on an annual basis, publicly report as widely as possible, including on the internet, on their due diligence system including on the steps taken by them to implement their obligations as set out in Articles 8, 9 and 10, as well as the implementation and outcomes of their due diligence, and measures they have taken to support the compliance of smallholders, including through investments and capacity building. Operators falling also within the scope of other Union legislative instruments that lay down requirements regarding value chain due diligence may fulfil their reporting obligations under this paragraph by including the required information when reporting in the context of other Union legislative instruments.

Amendment  146

 

Proposal for a regulation

Article 11 – paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Reports shall, in respect of relevant commodities and products supplied by each supplier:
	(a) provide the information set out in Article 9;
	(b) describe the information and evidence obtained and used to assess the compliance by the relevant commodities and products with Article 3;
	(c) state the conclusions of the risk assessment conducted under Article 10(1) and describe any risk mitigation procedures or measures undertaken pursuant to Article 10(4);
	(d) specify the date and place where the relevant commodities and products were placed on, or exported from, the Union market; and
	(e) provide evidence of consultation of indigenous peoples, local communities, and other customary tenure rights holders that are present in the area of production of the relevant commodities and products.

Amendment  147

 

Proposal for a regulation

Article 11 – paragraph 3

Text proposed by the Commission	Amendment
3. Operators shall keep for at least 5 years all documentation related to due diligence, such as all relevant records, measures and procedures pursuant to Article 8. They shall make them available to the competent authorities upon request.	3. Operators shall keep for at least 5 years all due diligence documentation, such as all relevant records, measures and procedures under Article 8, allowing each product or commodity placed on the market, the risk analysis carried out, and the result obtained, to be identified beyond doubt. They shall make that documentation available to the competent authorities on request.

Amendment  148

Proposal for a regulation

Article 11 a (new)

Text proposed by the Commission	Amendment
	Article 11a
	Obligations of financial institutions
	1.  With a view to complying with Article 3, financial institutions shall exercise due diligence prior to providing financial services to customers whose economic activities consist, or are linked to, the trading or placing on the market of relevant commodities and products.
	2.  The due diligence shall include:
	(a) the collection of information and documents, as referred to in Article 9(1a), needed to fulfil the requirement set out in paragraph 1 of this Article;
	(b)  risk assessment and mitigation measures as referred to in Article 10;
	3.  Financial institutions shall not provide financial services to customers without prior submission of a due diligence statement to the competent authorities.
	4.  Where financial institutions have established an ongoing business relationship with customers before ... [date of entry into force of this Regulation], the financial institutions shall complete the relevant due diligence by ... [OP: insert date one year after the date of entry into force of this Regulation].

Amendment  149

Proposal for a regulation

Article 11 b (new)

Text proposed by the Commission	Amendment
	Article 11b
	1.  Financial institutions shall verify and analyse information collected in accordance with Article 9(1a) and any other relevant documentation, and on that basis shall carry out a risk assessment to establish if there is a risk that the provision of financial services to a customer does not comply with Article 12a(1). If the financial institution cannot demonstrate that the risk of non-compliance is negligible, it shall not provide financial services to the customer concerned.

Amendment  150

 

Proposal for a regulation

Article 12 – paragraph 1

Text proposed by the Commission	Amendment
1. When placing relevant commodities or products on the Union market or exporting them from it, operators are not required to fulfil the obligations under Article 10 where they can ascertain that all relevant commodities and products have been produced in countries or parts thereof that were identified as low risk in accordance with Article 27.	1. When placing relevant commodities or products on the Union market or exporting them from it, operators are not required to fulfil the obligations under Article 10(2), points (a), (b), (ba), (bb), (c), (d), (e), (h), (ha) or (j), or Article 10(6), where they can ascertain that all relevant commodities and products have been produced in countries or parts thereof that were identified as low risk in accordance with Article 27.

Amendment  151

 

Proposal for a regulation

Article 12 – paragraph 2

Text proposed by the Commission	Amendment
2. However, if the operator obtains or is made aware of any information that would point to a risk that the relevant commodities and products may not fulfil the requirements of this Regulation, all obligations of Article 9 and 10 have to be fulfilled.	2. However, if the operator obtains or is made aware of any relevant information that would point to a risk that the relevant commodities and products may not fulfil the requirements of this Regulation, all obligations of Article 9 and 10 have to be fulfilled. The operator shall immediately communicate any relevant information to the competent authority.

Amendment  152

 

Proposal for a regulation

Article 12 – paragraph 2 a (new)

Text proposed by the Commission	Amendment
	2a. Where a competent authority is made aware of any information that would point to a risk of possible circumvention of the requirements of this Regulation, including cases in which relevant commodities or products are produced in a standard-risk or high-risk country and are subsequently processed in, or exported to, the Union from a low-risk country, the competent authority shall proceed to checks in accordance with Article 14(6) and, where necessary, adopt interim measures in accordance with Article 21. Where non-compliance with this Regulation is established, Member State authorities shall take further measures in accordance with Articles 22 and 23.

Amendment  153

 

Proposal for a regulation

Article 12 a (new)

Text proposed by the Commission	Amendment
	Article 12a
	Guidelines
	1. By ... [date 12 months after the entry into force of this Regulation], the Commission shall issue user-friendly commodity-specific guidelines to clarify due diligence responsibilities and traceability rules of operators that are tailored to fit their respective supply chains. The Commission shall take into account other due diligence requirements arising from Union law, in particular [the forthcoming Directive on Sustainable Corporate Governance Due Diligence].
	2.  The guidelines shall particularly take into account SMEs’ needs and shall inform them of the different means to access administrative and financial assistance and shall provide guidance on how the requirements from overlapping due diligence rules under different Union acts could be implemented most efficiently.
	3. The guidelines shall be developed in consultation with relevant stakeholders, including from third countries and, where appropriate, taking into consideration best practices from international bodies having expertise in due diligence.
	4. The Commission shall regularly review and update the guidelines, taking into account the latest developments in the sectors concerned.

Amendment  154

 

Proposal for a regulation

Article 13 – paragraph 3

Text proposed by the Commission	Amendment
3. The Commission shall make the list of the competent authorities publicly available on its website. The Commission shall regularly update the list, based on relevant updates received from Member States.	3. The Commission shall make the list of the competent authorities publicly available on its website without undue delay. The Commission shall regularly update the list, based on relevant updates received from Member States.

Amendment  155

 

Proposal for a regulation

Article 13 – paragraph 4

Text proposed by the Commission	Amendment
4. Member States shall ensure that the competent authorities have adequate powers and resources to perform the obligations set out in Chapter 3 of this Regulation.	4. Member States shall ensure that the competent authorities have adequate powers, functional independence and resources to perform the obligations set out in Chapter 3 of this Regulation.

Amendment  156

 

Proposal for a regulation

Article 13 – paragraph 6

Text proposed by the Commission	Amendment
6. Member States, may facilitate the exchange and dissemination of relevant information, in particular with a view to assisting operators in assessing risk as set out in Article 9, and on best practices regarding the implementation of this Regulation.	6. Member States shall facilitate the exchange and dissemination of relevant information, in particular with a view to assisting operators in assessing risk as set out in Article 9, and on best practices regarding the implementation of this Regulation.

Amendment  157

 

Proposal for a regulation

Article 13 – paragraph 7 a (new)

Text proposed by the Commission	Amendment
	7a. In order to ensure the uniform application of the obligations listed in this Chapter, in particular the checks on operators and traders, the Commission shall issue guidance to all competent authorities no later than ... [OP: insert date six months after the entry into force of this Regulation].

Amendment  158

Proposal for a regulation

Article 13 – paragraph 7 b (new)

Text proposed by the Commission	Amendment
	7b. Competent authorities shall monitor the compliance of financial institutions with the requirements of this Regulation.

Amendment  159

 

Proposal for a regulation

Article 14 – paragraph 3

Text proposed by the Commission	Amendment
3. To carry out the checks referred to in paragraph 1, the competent authorities shall establish a plan based on a risk-based approach. The plan shall contain at least risk criteria to carry out the risk analysis under paragraph 4 and thereby inform the decisions on checks. In establishing and reviewing the risk criteria, the competent authorities shall take into account in particular the assignment of risk to countries or parts thereof in accordance with Article 27, the history of compliance of an operator or trader with this Regulation and any other relevant information. Based on the results of the checks and the experience on implementation of the plans, the competent authorities shall review those plans and risk criteria on a regular basis in order to improve their effectiveness. When reviewing the plans, the competent authorities shall establish a reduced frequency of checks for those operators and traders who have shown a consistent record of full compliance with the requirements under this Regulation.	3. To carry out the checks referred to in paragraph 1, the competent authorities shall establish a plan based on a risk-based approach. The plan, which shall be made public in accordance with Article 19, shall contain at least risk criteria to carry out the risk analysis under paragraph 4 and thereby inform the decisions on checks. In establishing and reviewing the risk criteria, the competent authorities shall take into account previous infringements of this Regulation by an operator or trader, the quantity of relevant commodities and products being placed or made available on the market, or exported from the Union market, by the operator or trader, the time elapsed following the completion of the risk assessment for the relevant commodities or products, the proximity of the plots of land or polygons on which the relevant commodities and products were produced to forests, and any other relevant information. Based on the results of the checks and the experience on implementation of the plans, the competent authorities shall review those plans and risk criteria on a regular basis in order to improve their effectiveness. When reviewing the plans, the competent authorities may establish a reduced frequency of checks for those operators and traders who have shown a consistent record of full compliance with the requirements under this Regulation.

Amendment  160

 

Proposal for a regulation

Article 14 – paragraph 7

Text proposed by the Commission	Amendment
7. The suspensions referred to in paragraph 6 shall end within 3 working days unless the competent authorities, based on the result of the checks conducted within that period, conclude that they require additional time to establish whether the relevant commodities and products comply with the requirements of this Regulation. In such case, the competent authorities shall extend the period of suspension by means of additional interim measures taken under Article 21 or, in the case of relevant commodities or products entering or leaving the Union market, by notifying the customs authorities of the need to maintain the suspension under Article 24(6).	7. The suspensions referred to in paragraph 6 shall end within five working days, or 72 hours for fresh commodities and products which are at risk of spoilage, unless the competent authorities, based on the result of the checks conducted within that period, conclude that they require additional time to establish whether the relevant commodities and products comply with the requirements of this Regulation. In such case, the competent authorities shall extend the period of suspension by means of additional interim measures taken under Article 21 or, in the case of relevant commodities or products entering or leaving the Union market, by notifying the customs authorities of the need to maintain the suspension under Article 24(6).

Amendment  161

 

Proposal for a regulation

Article 14 – paragraph 9

Text proposed by the Commission	Amendment
9. Each Member State shall ensure that the annual checks carried out by their competent authorities cover at least 5% of the operators placing, making available on or exporting from the Union market each of the relevant commodities on their market as well as 5% of the quantity of each of the relevant commodities placed or made available on or exported from their market.	9. Each Member State shall ensure that the annual checks carried out by their competent authorities cover at least 10 % of the operators placing, making available on or exporting from the Union market each of the relevant commodities and products on their market as well as 10 % of the quantity of each of the relevant commodities and products placed or made available on or exported from their market. For commodities or products from countries or parts thereof categorised as low-risk as referred to Article 27, Member States may reduce the annual checks to 5 %.

Amendment  162

 

Proposal for a regulation

Article 14 – paragraph 11

Text proposed by the Commission	Amendment
11. Without prejudice to the checks under paragraphs 5 and 6, competent authorities shall conduct checks referred to in paragraph 1 when they are in possession of evidence or other relevant information, including based on substantiated concerns provided by third parties under Article 29, concerning potential non-compliance with this Regulation.	11. Without prejudice to the checks under paragraphs 5 and 6, competent authorities shall, without undue delay, conduct checks referred to in paragraph 1 when they are in possession of evidence or other relevant information, including based on the rapid alert mechanisms or on substantiated concerns provided by third parties under Article 29, concerning potential non-compliance with this Regulation.

Amendment  163

 

Proposal for a regulation

Article 14 – paragraph 12

Text proposed by the Commission	Amendment
12. Checks shall be carried out without prior warning of the operator or trader, except where prior notification of the operator or trader is necessary in order to ensure the effectiveness of the checks.	12. Checks shall be carried out without prior warning of the operator or trader, except where prior notification of the operator or trader is necessary in order to ensure the effectiveness of the checks. Authorities shall justify such prior notifications in their control reports, including information on the number of prior warnings.

Amendment  164

 

Proposal for a regulation

Article 14 – paragraph 13

Text proposed by the Commission	Amendment
13. The competent authorities shall keep records of the checks indicating in particular their nature and results, as well as on the measures taken in case of non-compliance. Records of all checks shall be kept for at least 5 years.	13. The competent authorities shall keep records of the checks indicating in particular their nature and results, as well as on the measures taken in case of non-compliance, including the penalties related to cases of non-compliance with this Regulation. Records of all checks shall be kept for at least ten years.

Amendment  165

 

Proposal for a regulation

Article 14 – paragraph 13 a (new)

Text proposed by the Commission	Amendment