Index 
Texts adopted
Tuesday, 13 September 2022 - Strasbourg
Uniform procedures for checks on the transport of dangerous goods by road (codification) ***I
 Conclusion of the amendments to the International Sugar Agreement, 1992 ***
 EU/Mauritius Fisheries Partnership Agreement: fishing opportunities and financial contribution 2017-2021. Extension of the Protocol ***
 Draft amending budget No 2/2022: entering the surplus of the financial year 2021
 Amendments to the Capital Requirements Regulation in the area of resolution (“daisy chain” proposal) ***I
 Responsible private funding of litigation
 Interim report on the 2021 proposal for a revision of the Multiannual Financial Framework
 New EU forest strategy for 2030 – Sustainable Forest Management in Europe
 Deforestation Regulation ***I
 Conservation and enforcement measures applicable in the Regulatory Area of the Northwest Atlantic Fisheries Organisation (NAFO) ***I
 Western and Central Pacific Fisheries Convention Area: conservation and management measures ***I
 The impact of COVID-19 closures of educational, cultural, youth and sports activities on children and young people in the EU

Uniform procedures for checks on the transport of dangerous goods by road (codification) ***I
PDF 122kWORD 45k
Resolution
Text
European Parliament legislative resolution of 13 September 2022 on the proposal for a directive of the European Parliament and of the Council on uniform procedures for checks on the transport of dangerous goods by road (codification) (COM(2021)0483 – C9-0347/2021 – 2021/0275(COD))
P9_TA(2022)0303A9-0228/2022

(Ordinary legislative procedure – codification)

The European Parliament,

–  having regard to the Commission proposal to the European Parliament and the Council (COM(2021)0483),

–  having regard to Article 294(2) and Article 91 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0347/2021),

–  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 20 October 2021(1),

–  having regard to the Interinstitutional Agreement of 20 December 1994 – Accelerated working method for official codification of legislative texts(2),

–  having regard to Rules 109 and 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Legal Affairs (A9-0228/2022),

A.  whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance;

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

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

Position of the European Parliament adopted at first reading on 13 September 2022 with a view to the adoption of Directive (EU) 2022/… of the European Parliament and of the Council on uniform procedures for checks on the transport of dangerous goods by road (codification)

P9_TC1-COD(2021)0275


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive (EU) 2022/1999.)

(1) OJ C 105, 4.3.2022, p. 148.
(2) OJ C 102, 4.4.1996, p. 2.


Conclusion of the amendments to the International Sugar Agreement, 1992 ***
PDF 109kWORD 42k
European Parliament legislative resolution of 13 September 2022 on the draft Council decision concerning the conclusion of the amendments to the International Sugar Agreement, 1992 (07978/2022 – C9-0181/2022 – 2022/0082(NLE))
P9_TA(2022)0304A9-0229/2022

(Consent)

The European Parliament,

–  having regard to the draft Council decision (07978/2022),

–  having regard to the draft amendments to the International Sugar Agreement, 1992 (07978/2022),

–  having regard to the request for consent submitted by the Council in accordance with Article 207(4), first subparagraph, and Article 218(6), second subparagraph, point (a) (v), of the Treaty on the Functioning of the European Union (C9‑0181/2022),

–  having regard to Rule 105(1) and (4), and Rule 114(7) of its Rules of Procedure,

–  having regard to the recommendation of the Committee on International Trade (A9-0229/2022),

1.  Gives its consent to the conclusion of the amendments to the agreement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States.


EU/Mauritius Fisheries Partnership Agreement: fishing opportunities and financial contribution 2017-2021. Extension of the Protocol ***
PDF 115kWORD 42k
European Parliament legislative resolution of 13 September 2022 on the draft Council decision on the conclusion, on behalf of the Union, of the Agreement in the form of an Exchange of Letters between the European Union and the Republic of Mauritius on an extension of the Protocol setting out the fishing opportunities and the financial contribution provided for by the Fisheries Partnership Agreement between the European Union and the Republic of Mauritius (05657/2022 – C9-0166/2022 – 2022/0014(NLE))
P9_TA(2022)0305A9-0211/2022

(Consent)

The European Parliament,

–  having regard to the draft Council decision (05657/2022),

–  having regard to the draft agreement in the form of an Exchange of Letters between the European Union and the Republic of Mauritius concerning an extension of the Protocol on the implementation of the Fisheries Partnership Agreement between the European Union and the Republic of Mauritius (05658/2022),

–  having regard to the request for consent submitted by the Council in accordance with Article 43 and Article 218(6), second subparagraph, point (a) (v), of the Treaty on the Functioning of the European Union (C9-0166/2022),

–  having regard to Rule 105(1) and (4) and Rule 114(7) of its Rules of Procedure,

–  having regard to the opinion of the Committee on Budgets,

–  having regard to the recommendation of the Committee on Fisheries (A9-0211/2022),

1.  Gives its consent to the conclusion of the agreement;

2.  Instructs its President to forward its position to the Council, the Commission and the governments and parliaments of the Member States and of the Republic of Mauritius.


Draft amending budget No 2/2022: entering the surplus of the financial year 2021
PDF 128kWORD 46k
European Parliament resolution of 13 September 2022 on the Council position on Draft amending budget No 2/2022 of the European Union for the financial year 2022 – Entering the surplus of the financial year 2021 (11467/2022 – C9-0297/2022 – 2022/0119(BUD))
P9_TA(2022)0306A9-0226/2022

The European Parliament,

–  having regard to Article 314 of the Treaty on the Functioning of the European Union,

–  having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

–  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(1), and in particular Article 44 thereof,

–  having regard to the general budget of the European Union for the financial year 2022, as definitively adopted on 24 November 2021(2),

–  having regard to Council Regulation (EU, Euratom) 2020/2093 of 17 December 2020 laying down the multiannual financial framework for the years 2021-2027(3) (‘MFF Regulation’),

–  having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources(4),

–  having regard to Council Decision (EU, Euratom) 2020/2053 of 14 December 2020 on the system of own resources of the European Union and repealing Decision 2014/335/EU, Euratom(5),

–  having regard to Draft amending budget No 2/2022, which the Commission adopted on 12 April 2022 (COM(2022)0250),

–  having regard to the position on Draft amending budget No 2/2022 which the Council adopted on 18 July 2022 and forwarded to Parliament on 16 August 2022 (11467/2022 – C9-0297/2022),

–  having regard to Rules 94 and 96 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets (A9-0226/2022),

A.  whereas Draft amending budget No 2/2022 aims to enter in the 2022 budget the surplus from the financial year 2021, amounting to EUR 3 227,1 million;

B.  whereas the main components of that surplus are a positive outturn on revenue of EUR 2 574,8 million and an under-spending in expenditure of EUR 652,3 million;

C.  whereas on the revenue side, the surplus is predominantly driven by a higher than expected amount of customs duties (by EUR 1 688,7 million) and a higher than forecast amount of financial revenue, default interest and fines (by EUR 1 110,8 million) made available to the Union budget in the last months of the year;

D.  whereas on the expenditure side, under-implementation in payments by the Commission reaches EUR 81 million for 2021 and EUR 250 million for 2020 carryovers (of which EUR 183 million related to the Emergency Support Instrument), and under-implementation by the other institutions reaches EUR 117 million for 2021 and EUR 77 million for carryovers;

1.  Takes note of Draft amending budget No 2/2022 as submitted by the Commission, which is devoted solely to the budgeting of the 2021 surplus, for an amount of EUR  3 227,1 million, in accordance with Article 18(3) of the Financial Regulation; notes that the 2021 surplus of EUR 3 227,1 million is particularly high; reiterates, in this context, that the Commission shall adhere to the principles of sound financial management in its implementation of the budget in accordance with Article 317 TFEU and Article 33 of the Financial Regulation;

2.  Regrets that EUR 183 million intended for the purchase of COVID-19 vaccines in 2021 were not spent as planned by the Commission or redirected to other needs;

3.  Reiterates its position that all available Union budget instruments, including the surplus, should be activated to continue providing the strongest possible economic and financial support to Ukraine and frontline countries and to further strengthen the Union’s solidarity capacities to address the social, energy, agricultural and economic consequences for the Union and its citizens of the Russian war in Ukraine; warns that those pressing needs will require additional support from the Union budget and stands ready to support relevant increases in the 2022 Union budget through future amending budgets and calls on the Commission to come forward, where relevant, with amending budgets mobilising fresh money to respond to those challenges; calls, in this context, on the Member States to devote the significant expected reductions in their GNI-based contributions stemming from the 2021 surplus to the budgeting of actions related to tackling the dire consequences of this illegal, unprovoked and unjustified war of aggression against Ukraine;

4.  Notes that, according to the Commission, competition fines in 2021 accounted for EUR 957 million; considers again that, in addition to any surplus resulting from under-implementation, the Union budget should be enabled to reuse any revenue resulting from fines or linked to late payments without a corresponding decrease in GNI contributions;

5.  Approves the Council position on Draft amending budget No 2/2022;

6.  Instructs its President to declare that Amending budget No 3/2022 has been definitively adopted and arrange for its publication in the Official Journal of the European Union;

7.  Instructs its President to forward this resolution to the Council, the Commission, the other institutions and bodies concerned and the national parliaments.

(1) OJ L 193, 30.7.2018, p. 1.
(2) OJ L 45, 24.2.2022, p. 1.
(3) OJ L 433 I, 22.12.2020, p. 11.
(4) OJ L 433 I, 22.12.2020, p. 28.
(5) OJ L 424, 15.12.2020, p. 1.


Amendments to the Capital Requirements Regulation in the area of resolution (“daisy chain” proposal) ***I
PDF 123kWORD 45k
Resolution
Text
European Parliament legislative resolution of 13 September 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institution groups with a multiple point of entry resolution strategy and a methodology for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities (COM(2021)0665 – C9-0398/2021 – 2021/0343(COD))
P9_TA(2022)0307A9-0020/2022

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2021)0665),

–  having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0398/2021),

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

–  having regard to the opinion of the European Central Bank of 13 January 2022,(1)

–  having regard to the opinion of the European Economic and Social Committee of 9 December 2021,(2)

–  having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 15 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Economic and Monetary Affairs (A9-0020/2022),

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.

Position of the European Parliament adopted at first reading on 13 September 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institutions with a multiple-point-of-entry resolution strategy and methods for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities

P9_TC1-COD(2021)0343


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/2036.)

(1) OJ C 122, 17.3.2022, p. 33.
(2) OJ C 152, 6.4.2022, p. 111.


Responsible private funding of litigation
PDF 216kWORD 81k
Resolution
Annex
European Parliament resolution of 13 September 2022 with recommendations to the Commission on Responsible private funding of litigation (2020/2130(INL))
P9_TA(2022)0308A9-0218/2022

The European Parliament,

–  having regard to Article 225 of the Treaty on the Functioning of the European Union,

–  having regard to Article 47 of the Charter of Fundamental Rights of the European Union,

–  having regard to Article 5 of the Decision of the European Parliament of 28 September 2005 adopting the Statute for Members of the European Parliament(1),

–  having regard to Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC(2),

–  having regard to Commission Recommendation of 11 June 2013 on common principles for injunctive and compensatory collective redress mechanisms in the Member States concerning violations of rights granted under Union Law,

–  having regard to the Study conducted by the European Parliament Research Service ‘Responsible Private Funding of Litigation’ of March 2021,

–  having regard to Rules 47 and 54 of its Rules of Procedure,

–  having regard to the report of the Committee on Legal Affairs (A9-0218/2022),

A.  whereas Member States have a primary responsibility to make adequate legal aid available to those who lack sufficient resources with a view to ensuring access to justice for all, in line with Article 47 of the Charter of Fundamental Rights of the European Union; whereas public legal aid and public prosecution are and must remain the central mechanisms to guarantee the fundamental right to an effective remedy and to a fair trial;

B.  whereas commercial third party litigation funding (TPLF) is a growing practice whereby private investors (‘litigation funders’) who are not a party to a dispute invest for profit in legal proceedings and pay legal and other expenses, in exchange for a share of any eventual award; whereas collective redress is only one type of litigation in which TPLF is currently used, with other examples being arbitration, insolvency proceedings, investment recovery, anti-trust claims and others;

C.  whereas TPLF could, if properly regulated, be used more often as a tool to support access to justice, especially in countries where legal costs are very high or for women and marginalised groups with additional funding barriers; whereas TPLF could also increasingly help to ensure that public interest cases are brought to court and to reduce significant economic imbalances that exist between corporations and those citizens seeking redress, and thereby ensure appropriate corporate accountability;

D.  whereas the British Institute of International and Comparative Law (BIICL) report on the ‘State of Collective Redress in the EU in the context of the Commission Recommendation’ highlights that in some Member States, third party funding has become an essential factor in the realisation of collective redress(3); whereas the Commission Report COM(2018)0040 on the implementation of the 2013 non-binding recommendations on collective redress highlights the fact that TPLF is a key aspect of collective redress(4), which has an important cross-border dimension;

E.  whereas litigation funders involved in legal proceedings may act in their own economic interest, rather than in the interest of claimants; whereas they may seek to control the litigation and demand an outcome that pays them the greatest return and in the shortest amount of time(5); whereas it is essential to ensure that adequate damages are paid to victims;

F.  whereas, while TPLF is virtually non-existent in Europe, it is a booming phenomenon in investment arbitration that multiplies the number and the volume of claims of private investors against States;

G.  whereas, according to the available data, litigation funders may, in certain Member States, demand a disproportionate share of the proceeds that exceed the typical returns of other types of investments; whereas the amounts claimed by litigation funders normally range across the Union from 20% to 50% of the award(6), but outside the Union such claims can in some cases represent returns on investment of up to 300%; whereas rules should be introduced to ensure that the fees paid to litigation funders are proportionate and the award is granted first to the claimants, before the fee is paid to the litigation funder;

H.  whereas TPLF is not the only way to facilitate access to justice, and other instruments, such as legal aid or legal cost insurance, are available to facilitate such access, and extrajudicial remedies also exist to seek redress, such as mediation, ADR/ODR, the Ombudsman or through grievance systems managed by companies; whereas those solutions could result in faster and more adequate compensation for claimants although such remedies are not always necessarily effective enough in providing adequate redress; whereas claimants should always be given the possibility of directly seeking a judicial remedy;

I.  whereas TPLF is prevalent in Australia, the USA, Canada, the United Kingdom and the Netherlands, and it is regarded by some as a key factor in ensuring that access to justice is available(7), nevertheless, there are also concerns about abusive practices in some jurisdictions; whereas, empirical data(8) show that litigation funders most often select cases that represent the best potential returns, and would not invest in cases they regard as too risky or not profitable enough;

J.  whereas the number of litigation funders is hard to determine, with at least 45 such funders known to operate in the Union; whereas, although in most Member States, the practice of TPLF has so far been limited in its extent, it is expected to play a growing role in the coming years, but it remains largely unregulated in the Union, despite the fact that it could present not only benefits, but also material risks to the administration of justice that need to be addressed;

K.  whereas in the current regulatory vacuum there is a risk that litigation funders operate in a non-transparent manner, with the result that courts could, on occasion, make awards to claimants without realising that a share of the award, which might sometimes be disproportionate, will subsequently be redirected to litigation funders at the expense of claimants; whereas such lack of transparency could also mean that even the potential beneficiaries have little or no knowledge about the distribution of awards or the funding agreements, in particular where an opt-out mechanism within collective redress systems applies; whereas, in the absence of common minimum standards at Union level, there is a risk of fragmentation and regulatory imbalances in the area of litigation funding;

L.  whereas Directive (EU) 2020/1828 identifies opportunities and lays down safeguards relating to litigation funding, which are, however, limited to representative actions on behalf of consumers within the remit of that Directive, and therefore does not regulate other types of action, such as those related to business or human rights, or categories of claimants, such as human rights organisations or workers; whereas effective measures and safeguards should apply to all types of claims;

Introduction

1.  Observes that, although recourse to third party litigation funding is still limited, it is an expanding practice in the Union, which plays an increasing role in the justice systems of some Member States, as well as in the way European citizens can access justice, particularly as regards cross-border cases. Notes that litigation funding is so far largely unregulated at Union level;

2.  Notes that regulating TPLF should go hand in hand with policies enhancing access to justice for claimants, such as by lowering legal costs, by providing adequate public funding to civil society organisations, including consumer protection organisations, or by promoting other practices such as legal aid or crowdfunding; calls on Member States to exchange best practice on this matter and to draw on the measures referred to in Article 20 of Directive (EU) 2020/1828 when it comes to ensuring effective access to justice;

3.  Is convinced that in order to ensure access to justice for all and that justice systems prioritise redress for injured parties, and not the interests of private investors who might only be seeking commercial opportunities from legal disputes, it is necessary to establish common minimum standards at Union level, which address the key aspects relevant to TPLF, including transparency, fairness, and proportionality;

4.  Stresses that the aim of such a regulatory regime would be to regulate litigation funding activities by litigation funders. Points out that such a regime should regulate funding activities in relation to all types of claims, regardless of the claims’ nature, and that it should be without prejudice to existing international, Union and national law allowing claims to be brought, in particular law on the protection of the collective interests of consumers, on environmental protection, and law governing insolvency proceedings or liability;

5.  Believes that establishing Union common minimum standards for TPLF will allow legislators to exercise effective oversight and adequately ensure that the interests of claimants are protected. Points out that voluntary regulatory mechanisms and codes of conduct can play a positive role, but so far have not been subscribed to by the large majority of funders, leaving claimants significantly exposed;

Regulation and supervision of litigation funders

6.  Recommends the establishment of a system of authorisation for litigation funders, thereby ensuring that effective opportunities are provided to claimants to make use of TPLF and that adequate safeguards are put in place, including through the introduction of corporate governance requirements and supervisory powers to protect claimants and to ensure that funding is only provided by entities that are committed to complying with minimum standards in terms of transparency, independence, governance and capital adequacy, and to observing a fiduciary relationship vis-à-vis claimants and intended beneficiaries; stresses the need to ensure that this system does not create an excessive administrative burden for Member States or for litigation funders;

Ethical issues

7.  Recommends that litigation funders be obliged to respect a fiduciary duty of care requiring them to act in the best interests of a claimant. Believes that litigation funders cannot have undue control over the legal proceedings they fund; such control over the legal proceedings must be the responsibility of the claimant and their legal representatives; such control over funded legal proceedings can consist of both formal control, such as through contractual arrangements, and informal control, such as through threats to withdraw the funding;

8.  Underlines that conflicts of interest may arise where there are inappropriate relationships between litigation funders, representative entities, law firms, aggregators, including claims-collection and award-distribution platforms, and other entities who may be involved in claims and have an interest in the outcome of a court case; notes that there is an increasing trend of litigation funders agreeing to finance law firms across a series of future cases (portfolio funding)(9); recommends that safeguards be adopted to prevent potential conflicts of interest, to lay down claimants’ rights and require disclosure of details of relationships between litigation funders and the other parties involved;

9.  Believes that, except in exceptional and strictly regulated circumstances, litigation funders should not be permitted to abandon funded parties in litigation at any stage in the litigation process, leaving claimants solely responsible for all costs of the litigation, which may have only been pursued due to the involvement of the funder; stresses, therefore, that contractual arrangements on the basis of conditional funding should be considered void;

10.  Believes that, just like claimants, litigation funders should be responsible for defendants’ costs arising from unsuccessful litigation, such as due to an adverse cost award. Stresses that regulation should prevent litigation funders from limiting their liability to costs in the event of an unsuccessful outcome;

Incentives and limits on recovery

11.  Considers that legislation should impose limits on the proportion of the award that litigation funders are entitled to receive in the event of successful litigation or a settlement and on the basis of a contractual arrangement. Believes that only under exceptional circumstances should arrangements between litigation funders and claimants depart from the general rule that a minimum of 60% of the gross settlement or damages is paid to the claimants;

Disclosure and transparency

12.  Considers that there should be transparency regarding the involvement of litigation funding in legal proceedings, including obligations for claimants and their lawyers to disclose funding agreements to courts upon the court’s initiative or following a request made to the court by the defendant, and to inform the court of the existence of commercial funding and the identity of the funder for the case at hand. Considers that the court should inform the defendant about the existence of TPLF and the identity of the funder. Notes that, currently, courts or administrative authorities and defendants are often not aware that a claim is funded by a commercial actor.

Powers of supervisory authorities and review by courts and administrative authorities

13.  Is of the opinion that supervisory authorities, courts and administrative authorities where appropriate in accordance with national procedural law, should have the powers to facilitate the enforcement of legislation adopted to achieve the goals set out above; recommends the establishment of a complaints system that does not give rise to excessive costs or an excessive administrative burden for Member States. Considers that supervisory authorities, courts and administrative authorities, where appropriate in accordance with national procedural law, should have the powers to address abusive practices by authorised litigation funders, while not hindering access to justice for claimants and intended beneficiaries;

Final aspects

14.  Requests the Commission to closely monitor and analyse the development of third party litigation funding in the Member States, both in terms of the legal framework and practice, with particular attention to be given to the implementation of Directive (EU) 2020/1828; further requests the Commission, after the expiry of the deadline for the application of Directive (EU) 2020/1828, namely 25 June 2023, and taking into account the effects of that Directive, to submit, on the basis of Article 114 of the Treaty on the Functioning of the European Union, a proposal for a Directive to establish common minimum standards at Union level on commercial third party litigation funding, following the recommendations set out in the Annex hereto;

15.  Considers that the requested proposal will not have financial implications;

o
o   o

16.  Instructs its President to forward this resolution and the accompanying recommendations to the Commission and the Council.

ANNEX TO THE RESOLUTION:

RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

Proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the regulation of third-party litigation funding

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the European Parliament’s request to the European Commission(10),

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee,(11)

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  Commercial third-party litigation funding is a practice which is developing into a litigation services market without a specific legislative framework being in place at Union level. Despite the fact that litigation funders are regularly established and operating in various Member States, domestically or across borders, they have so far been subject to different national rules and practices in the internal market, where generally fragmented rules and even a legislative vacuum, depending on the Member State concerned, in this area exist. Diverging rules and practices in Member States are likely to constitute an obstacle to the functioning of the internal market. A lack of clarity on the terms on which commercial third party litigation funders (‘litigation funders’) may operate is not compatible with the proper functioning of the internal market, in particular taking into account that it may be possible to fund cross-border cases only through a third party, and those cases are particularly attractive to litigation funders. Divergences in the legal framework applicable in each Member State entail a risk of discrimination in access to justice between claimants in different Member States, in particular in cases with a cross-border element, as well as a risk of forum shopping by litigation funders, which could be influenced by the favourability of certain national rules concerning their establishment, the law applicable to funding agreements and national procedural rules.

(2)  Union law seeks to ensure a balance between granting access to justice and providing appropriate safeguards to those engaged in proceedings, to prevent their right to access justice from being unjustly exploited. When litigation funders provide financing for legal proceedings in exchange for a share of any compensation awarded, a risk of injustice can arise. That risk includes litigation funders being able to take advantage of claimants, or those whom they represent, including, where relevant, consumers whose interests are represented by qualified entities, to serve their own purposes and to maximise their own return, thus leaving claimants or intended beneficiaries with a reduced share of the potential award. The risks can be particularly acute where those expecting to benefit from litigation are consumers or victims of fundamental rights violations, who might welcome the involvement of a litigation funder ready to pay for proceedings, without appreciating that their interests could be subverted in favour of the litigation funder’s own interests.

(3)  Establishing a common Union framework of minimum standards for responsible commercial third-party litigation funding would help to promote access to justice and ensure appropriate corporate accountability. Indeed, a significant economic imbalance often exists between companies and citizens seeking redress, and third-party litigation funding can help reduce that imbalance if the associated risks are mitigated, and such funding operates in complementarity with other measures removing barriers to access to justice. To that end, it is crucial to ensure a necessary balance between improving claimants’ access to justice and appropriate safeguards to avoid abusive litigation. Responsible third-party litigation funding can lower costs, make them more predictable, simplify unnecessary procedures and deliver efficient services at costs that are proportionate to the amounts in dispute.

(4)  As the internal market facilitates increasing cross-border trade, as disputes are increasingly cross-border, and as the activities of litigation funders are global in nature, there is a potential risk of material divergences in Member State approaches to the safeguards and the protections necessary with regard to commercial third-party litigation funding. Voluntary approaches have been successful to some extent but not always subscribed to by the majority of industry actors, and, in any event, non-legislative measures would not be appropriate in light of such material risks, for instance for vulnerable categories of citizens, including from third countries.

(5)  This Directive aims to regulate commercial third-party litigation funding, a practice whereby third-party entities not directly involved in a dispute invest for profit in legal proceedings, typically in exchange for a percentage of any settlement or award (hereinafter ‘third-party litigation funding’). Third-party litigation funding covers situations in which a commercial actor invests for profit and acts to further its business interests; therefore it does not include provision of funds to sponsor litigation on a charitable basis or on the basis of donations, where the funder simply aims to recover the costs incurred, or similar activities carried out on a pro bono publico basis. This Directive also aims to lay down safeguards, on the one hand, to ensure efficient access to justice and the protection of the interests of the parties to the dispute and, on the other hand, to prevent conflicts of interest, abusive litigation as well as the disproportionate allocation of monetary awards to litigation funders.

(6)  The term ‘litigation funder’ should be understood to refer to any undertaking that is not a party to proceedings, but enters into a third-party litigation funding agreement (hereinafter ‘third-party funding agreement’) in relation to those proceedings. In line with the case-law of the Court of Justice of the European Union, the concept of ‘undertaking’ includes any entity engaged in an economic activity, regardless of its legal status and the way in which it is financed, and therefore includes any legal person, including its parents, subsidiaries or affiliates and could include professional litigation-funding providers, financial services providers, claims management firms or other service providers. The concept of litigation funder is not intended to include lawyers representing a party in legal proceedings, or regulated providers of insurance services to such a party.

(7)  In accordance with the legal traditions and autonomy of the Member States, it is for each Member State to determine whether, and to what extent, the provision of litigation funding should be permitted within its own legal system. Where Member States choose to permit such third-party litigation funding, this Directive provides for minimum standards for the protection of funded claimants, so that those who might have recourse to litigation funding in the Union are covered by a minimum level of protection, which is consistent across the Union.

(8)  In those Member States where legal costs may represent a significant barrier to access to justice, however, Member States may wish to consider introducing legislation to allow third-party litigation funding and in that case should establish clear conditions and safeguards that are in accordance with this Directive. While this Directive does not apply solely to representative actions, Member States should take measures aiming to ensure that the costs of the proceedings related to representative actions do not prevent qualified entities from effectively exercising their right to seek redress, in accordance with Directive (EU) 2020/1828 and in particular Article 20 thereof.

(9)  Where third-party litigation funding activity is permitted, a system for the authorisation and supervision of litigation funders by independent administrative bodies in the Member States is necessary to ensure that such litigation funders meet the minimum criteria and standards laid down in this Directive. Litigation funders should be subject to oversight in a manner similar to that of the existing prudential supervision system applicable to financial services providers.

(10)  Litigation funders active in the Union should be required to conduct their business from within the Union, be authorised within the Union, and to conclude their third-party funding agreements subject to the laws of the Member State of the proceedings or, if different, the Member State of the claimant or intended beneficiaries, in order to ensure that supervision under Union and national law is adequate.

(11)  Supervisory authorities within the Union that grant authorisations to conduct third-party litigation funding activities should be empowered to require that litigation funders comply with minimum criteria laid down by this Directive. Such criteria should include provisions relating to confidentiality, independence, governance, transparency, capital adequacy, and observance of a fiduciary duty to claimants and intended beneficiaries. Supervisory authorities should be empowered to make any necessary orders, including the power to receive from litigation funders applications for authorisation and to decide upon them, to gather any necessary information, grant, deny, suspend or withdraw any authorisation or to impose any condition, restriction or penalty upon any litigation funder, as well as to investigate without undue delay complaints against any litigation funder conducting activities within their jurisdiction submitted by any natural or legal person, with the exception of the defendant. Concerns raised by a defendant regarding the litigation funder during ongoing legal proceedings should be dealt with by the relevant court or administrative authority.

(12)  Among other authorisation criteria, Member States should require litigation funders to demonstrate that they have sufficient capital to satisfy their financial obligations. The absence of capital adequacy requirements creates a risk that an undercapitalised litigation funder enters into a third-party funding agreement and is not willing or able subsequently to cover the costs of the litigation it had agreed to support, including the costs or fees necessary to allow the proceedings to reach their conclusion, or any adverse cost award. This can expose claimants who rely on litigation funders to a risk of unforeseen material economic loss, and to the risk of the abandonment of otherwise viable proceedings due to the business circumstances or decisions of the litigation funder.

(13)  Litigation funders should be bound by a duty to act fairly, transparently, efficiently and in the best interests of claimants and intended beneficiaries of claims. A lack of a requirement to place the interests of claimants and intended beneficiaries ahead of a litigation funder’s own interests may create the risk of proceedings being directed in a manner that ultimately serves the interests of the litigation funder, rather than those of the claimant.

(14)  To prevent circumvention of the requirements of this Directive, agreements entered into with litigation funders who do not have the necessary authorisation should have no legal effect. The burden to acquire the necessary authorisations should be on litigation funders themselves, and therefore claimants and intended beneficiaries should be indemnified in respect of any harm caused by a litigation funder not having the necessary authorisation.

(15)  This Directive should regulate the activities of litigation funders, but should be without prejudice to any other regulatory obligations or regimes, such as existing rules governing the provision of financial services that may apply, respecting also the legal traditions of the Member States, their autonomy and their decisions regarding the appropriateness of permitting litigation funding in their national legal systems.

(16)  To facilitate the consistent application of this Directive, Member States should ensure that their supervisory authorities apply this Directive in close cooperation with the supervisory authorities of other Member States. Coordination between supervisory authorities should be organised at Union level to avoid the divergence of supervisory standards, which could jeopardise the proper functioning of the internal market.

(17)  The Commission should coordinate the activities of supervisory authorities and facilitate the creation of a suitable cooperation network for this purpose. Supervisory authorities should be enabled to consult the Commission as necessary, and the Commission should be allowed to issue guidelines, recommendations, best practice notices or advisory opinions to supervisory authorities on the application of this Directive, and in relation to any apparent inconsistency with regard to the implementation of this Directive. Supervisory authorities should share details of their activities with the Commission to facilitate coordination, including sharing details of all decisions taken and litigation funders they authorise.

(18)  To facilitate the provision of cross border litigation funding services in those Member States where it is permitted under national law, Member States should be able to cooperate, share information and best practice, and should be required to take full account of each other’s authorisation decisions. Member States should ensure that comprehensive and clear information and guidance on the existence of funding options for claims, as well as on the conditions and requirements that apply to the funding of claims, is fully and freely accessible to all citizens who might seek redress, including to the most vulnerable groups. In line with Article 56 of the Treaty on the Functioning of the European Union, Member States should mutually recognise prior authorisations and therefore automatically grant authorisation to litigation funders operating on their territory which have been authorised to operate in another Member State, provided that the initial authorisation continues to be valid. Where a supervisory authority in a receiving Member State is aware of irregularities in the conduct of a litigation funder, it should directly inform the responsible supervisory authority.

(19)  Member States should ensure that decisions regarding the relevant legal proceedings, including decisions on settlement, are not unduly influenced or controlled by the litigation funder in a manner that would be detrimental to the interests of the claimants concerned by that action.

(20)  To redress any knowledge or resource imbalance between a litigation funder and a claimant, in assessing the suitability of a third-party funding agreement, courts or administrative authorities should take into account the level of clarity and transparency of such agreements, and the degree to which any risks and benefits were transparently presented to and knowingly undertaken by claimants or those represented by claimants.

(21)  Third party funding agreements should be presented to claimants in a language they understand, and should set out clearly and in appropriate terms the range of possible outcomes, as well as any risks and relevant limitations.

(22)  Adequate supervision of litigation funders and third-party funding agreements cannot be ensured in the absence of obligations on litigation funders to be transparent regarding their activities. This includes transparency vis-à-vis courts or administrative authorities, defendants and claimants. Obligations should therefore be laid down to inform the relevant court or administrative authority of the existence of commercial funding and the identity of the funder, as well as to disclose third-party funding agreements in full to courts or administrative authorities, upon their request or at the request of the defendant to the court and subject to appropriate limitations to protect any necessary confidentiality. Courts or administrative authorities should be empowered to access relevant information on all third-party litigation funding activity relevant to the legal proceedings under their responsibility. In addition, defendants should be made aware by the court or administrative authority of the existence of third-party litigation funding and the identity of the funder.

(23)  Courts or administrative authorities should be empowered, where a third-party funding agreement is relevant to the case before them, to assess whether the third-party funding agreement complies with this Directive and, in accordance with Article 16, to review it if necessary, either at the request of a party to the proceedings, or on the initiative of the court or administrative authority, or following an action brought before them against the administrative decision of a supervisory authority which has become final;

(24)  Litigation funders should establish internal good governance processes to avoid conflicts of interests between the litigation funder and claimants. Compliance with transparency requirements should ensure that claimants are fully aware of any relationship a litigation funder might have with defendants, lawyers, other litigation funders, or any other third party involved in the case, which could create an actual or perceived conflict.

(25)  Litigation funders should in no case claim unfair, disproportionate or unreasonable reward at the expense of claimants. Courts or administrative authorities should be empowered to assess third-party litigation funding agreements relevant to the case before them, taking into account the circumstances and background within which the agreement was concluded, in order to determine effectively whether it is fair and complies with this Directive and all relevant Union and national legislation.

(26)  Where third-party funding agreements permit litigation funders to receive a share of any reward or certain fees as a priority in relation to any award allocated to claimants, the available award could be so reduced as to leave little or nothing for claimants. Therefore, third-party funding agreements should always ensure that any award is paid to the claimant first, that is to say that the entitlement of the claimant takes priority over that of the funder. Litigation funders should not be permitted to require the prioritisation of their own reward.

(27)  Given that in some Member States the share of any reward received by litigation funders can reduce any relief obtained by claimants, courts or administrative authorities should exercise oversight over the value and proportion of this share to prevent any disproportionate allocation of monetary awards to litigation funders. Save in exceptional circumstances, when the share of any reward claimed by a litigation funder would dilute the award, including all damages amounts, costs, fees and other expenses, available to claimants and intended beneficiaries to 60% or less, it should be presumed unfair and deemed invalid.

(28)  Additional conditions should be put in place to ensure that litigation funders do not unduly influence the decisions of claimants in the course of proceedings, that is to say in a manner that would benefit the litigation funder itself at the expense of the claimant. In particular, litigation funders should not unduly influence decisions on how cases are pursued, which interests are prioritised, or whether or not claimants should accept any particular outcome, award or settlement.

(29)  Litigation funders should not be allowed to withdraw the funding they have agreed to provide, except in limited circumstances as set out in this Directive or in national law adopted pursuant to this Directive, so that funding is not withdrawn at any stage of the litigation process, to the disadvantage of the claimants or intended beneficiaries, due to the litigation funder’s business interests or incentives changing.

(30)  Where litigation funders have supported or funded proceedings which are not successful, they should be jointly liable with claimants for any adverse costs they caused defendants to incur and that may be awarded by courts or administrative authorities. Courts or administrative authorities should be granted adequate powers to ensure the effectiveness of such an obligation, and third-party funding agreements should not exclude responsibility for such adverse costs.

(31)  Member State courts or administrative authorities should be entitled to determine any adverse costs awards in accordance with national law, including by reliance on any scientific, statistical or technical evidence as may be relevant, or through reliance on any experts, assessors or tax accountants, as may be suitable in the circumstances of the proceedings.

(32)  This Directive respects fundamental rights and observes principles recognised, in particular, by the Charter of Fundamental Rights of the European Union. Accordingly, this Directive should be interpreted and applied in accordance with those rights and principles, including those related to the right to an effective remedy and to a fair trial, as well as the right of defence.

(33)  Since the objectives of this Directive, namely to ensure the harmonisation of Member States’ rules applicable to litigation funders and their activities, and thus to enable access to justice, while introducing common minimum standards for the protection of the rights of funded claimants and intended beneficiaries in proceedings financed wholly or in part by third-party funding agreements, which apply in all Member States in which litigation funding is permitted, cannot be sufficiently achieved by the Member States as litigation funders can operate in multiple Member States and are subject to different national rules and practices, but can rather be better achieved at Union level, by reason of the scale of the emerging market of third-party litigation funding, the need to avoid diverging rules and practices that are likely to constitute an obstacle to the proper functioning of the internal market and ‘forum shopping’ by litigation funders seeking to optimise national rules, 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 Directive does not go beyond what is necessary in order to achieve those objectives.

(34)  In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents, Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.

HAVE ADOPTED THIS DIRECTIVE:

Chapter I

General Provisions

Article 1

Subject Matter and purpose

This Directive sets out minimum rules applicable to commercial third-party litigation funders and their authorised activities, and provides a framework to support and protect funded claimants and intended beneficiaries, including, where relevant, those whose interests are represented by qualified entities, in proceedings financed entirely or in part by third-party litigation funding. It lays down safeguards to prevent conflicts of interest, abusive litigation as well as the disproportionate allocation of monetary awards to litigation funders, while ensuring that third-party litigation funding appropriately allows claimants and intended beneficiaries to access justice, and ensuring corporate accountability.

Article 2

Scope

This Directive applies to commercial third party litigation funders (hereinafter ‘litigation funders’) and to commercial third-party funding agreements (hereinafter ‘third-party funding agreements’), regardless of the related claims’ nature. It is without prejudice to existing international, Union and national law allowing claims to be brought, in particular law on the protection of the collective interests of consumers, on environmental protection, and law governing insolvency proceedings or liability.

Article 3

Definitions

For the purposes of this Directive, the following definitions apply:

(a)  ‘litigation funder’ means any commercial undertaking that enters into a third-party funding agreement in relation to proceedings, even though it is neither a party to those proceedings, nor a lawyer nor other legal professional representing a party to such proceedings, nor a provider of regulated insurance services to a party in such proceedings, and which has the primary aim of receiving a return on an investment it makes by providing funding in relation to those proceedings or of obtaining a competitive advantage in a specific market;

(b)  ‘claimant’ means any natural or legal person who brings or intends to bring proceedings against another party before a court or administrative authority;

(c)  ‘court or administrative authority’ means a competent court, administrative authority, arbitral body or other body tasked with adjudicating on proceedings, in accordance with national law;

(d)  ‘intended beneficiary’ means a person who is entitled to receive a share of an award in proceedings and whose interests in the proceedings are represented by the funded claimant or a qualified entity bringing the action as a claimant party on that person’s behalf in the course of representative actions;

(e)  ‘proceedings’ means any domestic or cross border civil or commercial litigation, or any voluntary arbitration procedure or alternative dispute resolution mechanism, through which redress before a court or administrative authority in the Union is sought concerning a dispute;

(f)  ‘qualified entity’ means an organisation representing consumers’ interests and designated as qualified entity under Directive (EU) 2020/1828;

(g)  ‘supervisory authority’ means a public authority designated by a Member State to be responsible for granting, suspending or withdrawing the authorisation for litigation funders, and for supervising the activities of litigation funders;

(h)  ‘third-party funding agreement’ means an agreement in which a litigation funder agrees to fund all or part of the costs of proceedings in exchange for receiving a share of the monetary amount awarded to the claimant or a success fee, so as to reimburse the litigation funder for the funding it provided and, where applicable, cover its remuneration for the service provided, based wholly or partially on the outcome of the proceedings. This definition covers all agreements in which such a reward is agreed, whether offered as an independent service, or achieved through a purchase or assignment of the claim.

Chapter II

Approval of litigation funders’ activities within the Union

Article 4

Authorisation system

1.  Member States may determine in accordance with national law whether third-party funding agreements can be offered in relation to proceedings within their jurisdiction, for the benefit of claimants or intended beneficiaries resident within their territory.

2.  Where third party funding activities are permitted, Member States shall create a system for the authorisation and monitoring of the activities of litigation funders within their territory. That system shall include designating an independent supervisory department or authority tasked with granting, suspending or withdrawing authorisations for litigation funders and supervising the activities of litigation funders.

3.  The system of authorisation provided for in this Article shall apply only to the activities connected to the offering of third-party funding agreements by litigation funders. Where litigation funders are also providers of other legal, financial or claims management services supervised by another authority within the Union, this Directive shall be without prejudice to any system of supervision and authorisation that exists in relation to those other services.

Article 5

Conditions for authorisation

1.  Member States shall ensure that supervisory authorities only grant or maintain authorisations, whether for domestic or cross-border litigation or other proceedings, to litigation funders who comply with this Directive, and who meet, in addition to any suitability or other criteria as may be set out in national law, at least the following criteria:

(a)  they conduct their business through a registered office in a Member State, and apply for and maintain an authorisation in that same Member State;

(b)  they commit to concluding third-party funding agreements subject to the laws of the Member State of any intended proceedings, or, if different, of the Member State of the claimant or intended beneficiaries;

(c)  they demonstrate to the satisfaction of the supervisory authority that they have procedures and governance structures in place to ensure their ongoing compliance with this Directive, with the transparency requirements and fiduciary relationships this Directive provides for, and they have established internal procedures to prevent a conflict of interest between themselves and the defendants in proceedings involving the litigation funder;

(d)  they meet the capital adequacy requirements set out in Article 6; and

(e)  they satisfy the supervisory authority that they have the governance and procedures in place to ensure that the fiduciary duty provided for in Article 7 is discharged and respected.

2.  Member States shall mutually recognise authorisation given to a litigation funder in another Member State and therefore automatically allow them to operate in their Member State, provided the initial authorisation continues to be valid.

3.  The system of authorisation established under Article 4 shall be without prejudice to the application of Union law governing the provision of financial services, investment activity, or consumer protection.

Article 6

Capital adequacy

1.  Member States shall ensure that supervisory authorities are empowered to verify whether litigation funders would be able to have at their disposal at all times adequate financial resources to fulfil their liabilities under their third-party funding agreements. In particular, supervisory authorities shall ensure that litigation funders have the capacity to:

(a)  pay all debts arising from their third-party funding agreements when they become due and payable; and

(b)  fund all stages of any proceedings they have committed to, including the trial and any subsequent appeal.

2.  Member States shall ensure that litigation funders are allowed to demonstrate that they meet the criteria set out in paragraph 1 by providing certification or an attestation that an insurance scheme would fully cover all the costs referred to in paragraph 1, where necessary.

3.  Member States shall ensure that supervisory authorities are empowered to verify whether litigation funders would be able to maintain access at all times to the minimum liquidity required to pay in full all foreseeable adverse costs in all proceedings they have funded. Members States shall ensure that their courts or administrative authorities can request litigation funders to provide security for costs in the forms admitted by national law, should a claimant so request based on reasoned specific concerns.

4.  Member States may set up a specific insurance fund to cover all the outstanding costs of claimants that engaged in litigation in good faith, in case a litigation funder becomes insolvent in the course of the litigation procedure. Where such a fund is set up by a Member State, that Member State shall ensure that it is publicly managed and financed through annual fees payable by authorised litigation funders.

Article 7

Fiduciary duty

1.  Member States shall ensure that supervisory authorities are empowered to verify that litigation funders have the governance and internal procedures in place to ensure that the third-party funding agreements they enter into are based on a fiduciary relationship and that they commit under those agreements to acting fairly, transparently and to observing a fiduciary duty of care requiring them to act in the best interests of a claimant.

2.  Where a claimant intends to take a claim on behalf of others in proceedings, such as where the claimant is a qualified entity representing consumers, the litigation funder shall be required to owe a fiduciary duty to such intended beneficiaries. Litigation funders shall be obliged to act in a manner that is consistent with their fiduciary duty throughout the course of proceedings. In the event of a conflict between the interests of the litigation funder and those of the claimants or intended beneficiaries, the litigation funder shall commit to placing the interests of the claimants or intended beneficiaries above its own interests.

Chapter III

Powers of supervisory authorities and coordination between them

Article 8

Powers of supervisory authorities

1.  Where third-party funding agreements are permitted in accordance with Article 4, Member States shall provide that an independent public supervisory authority is responsible for overseeing the authorisation of litigation funders established within its jurisdiction, offering third-party funding agreements to claimants and intended beneficiaries within its jurisdiction, or in relation to proceedings within its jurisdiction.

2.  Member States shall ensure that a complaint procedure is in place for any natural or legal person who wishes to raise concerns before a supervisory authority regarding the compliance of a litigation funder with its obligations under this Directive and the applicable national law.

3.  Notwithstanding the complaint procedure referred to in paragraph 2, in the event of ongoing legal proceedings involving the litigation funder, concerns raised by the defendant in such proceedings regarding the compliance of a litigation funder with its obligations under this Directive and the applicable national law shall be dealt with by the competent court or administrative authority in accordance with Article 16(2).

4.  Each supervisory authority shall in particular be empowered and required to:

(a)  receive from litigation funders applications for authorisation and any information that is necessary for the purposes of considering those applications, and decide upon any such applications in a timely fashion;

(b)  take the decisions necessary to grant or deny authorisation to any applicant litigation funder, to withdraw any authorisation, or to impose conditions, restrictions or penalties upon any authorised litigation funder;

(c)  decide on the suitability and fitness of a litigation funder, including by reference to their experience, reputation, internal processes for the avoidance and resolution of conflicts of interest, knowledge;

(d)  publish on its website any decision taken pursuant to point (b), having due regard to commercial confidentiality;

(e)  assess at least every year whether an authorised litigation funder continues to comply with the criteria for authorisation referred to in Article 5(1) and ensure that such authorisation is suspended or withdrawn if the litigation funder no longer complies with one or more of those criteria. Such a suspension or withdrawal shall not affect the rights of the claimants and beneficiaries of the proceedings in which the funder may be involved; and

(f)  under the system referred to in Article 9, receive and investigate complaints in relation to the conduct of a litigation funder and the compliance of such litigation funder with the provisions laid down in Chapter IV of this Directive and any other applicable requirements under national law.

5.  Member States shall ensure that litigation funders are required to notify a supervisory authority without undue delay of any changes affecting their compliance with the capital adequacy requirements laid down in Article 6, paragraphs 1 and 2. In addition, Member States shall ensure that litigation funders certify annually that they remain in compliance with those paragraphs.

6.  Member States shall ensure that supervisory authorities oversee fiduciary relationships between litigation funders and claimants and intended beneficiaries in general, and are able to make directions and orders to ensure that claimants’ interests and those of intended beneficiaries are protected.

Article 9

Investigations and complaints

1.  Member States shall ensure that a complaints system is in place which allows for the reception and investigation of complaints as referred to in Article 8, paragraph 2.

2.  Under the complaints system referred to in paragraph 1, Member States shall ensure that supervisory authorities are empowered to assess without undue delay whether a litigation funder is in compliance with any obligations or conditions associated with its authorisation, with the provisions of this Directive and with any other applicable requirements under national law.

3.  Member States shall ensure that, in exercising their oversight with regard to litigation funders’ compliance with obligations or conditions associated with their authorisation, supervisory authorities shall be empowered to

(i)  investigate complaints received from any natural or legal person in accordance with Article 8(2) and subject to Article 8(3);

(ii)  investigate complaints from any other supervisory authority or the Commission;

(iii)  initiate investigations on an ex officio basis,

(iv)  initiate investigations following a recommendation from a court or administrative authority that has concerns arising from any proceedings before such a court or administrative authority regarding a litigation funder’s compliance with obligations or conditions associated with its authorisation.

Article 10

Coordination between supervisory authorities

1.  Member States shall ensure that their supervisory authorities apply this Directive in close cooperation with the supervisory authorities of other Member States.

2.  The Commission shall oversee and coordinate the activities of the supervisory authorities in performing the functions set out in this Directive, and shall convene and chair a network of supervisory authorities. The Commission shall adopt delegated acts in accordance with Article 11 in order to supplement this Directive by laying down the modalities for cooperation within the network of supervisory authorities, and shall revise them periodically, in close cooperation with the supervisory authorities.

3.  The supervisory authorities may consult the Commission on any matter involving the implementation of this Directive. The Commission may issue guidelines, recommendations, best practice notices and advisory opinions to supervisory authorities on the implementation of this Directive, and in relation to any apparent inconsistency in this regard, or in relation to the supervision of any litigation funders. The Commission may also set up a centre of competence to provide qualified expertise to court or administrative authorities seeking advice on how to assess litigation funders’ activities within the Union.

4.  Each supervisory authority shall set up a list of authorised litigation funders, communicate it to the Commission and make that list publicly available. Supervisory authorities shall update that list whenever there are changes to it and inform the Commission accordingly.

5.  Each supervisory authority shall communicate, upon request, to the Commission and other supervisory authorities details of decisions taken with regard to the supervision of litigation funders, including details of decisions taken pursuant to Article 8(4), point (b).

6.  Where a litigation funder has sought authorisation from a supervisory authority, and subsequently seeks authorisation from another, such supervisory authorities shall coordinate and share information to the extent appropriate, with a view to taking consistent decisions, while having due regard to diverging national rules.

7.  Where a litigation funder is authorised by a supervisory authority in a Member State, but wishes to offer a third-party funding agreement for the benefit of a claimant or other intended beneficiary in another Member State, or for proceedings in another Member State it shall present proof of authorisation from its home Member State supervisory authority. Where a supervisory authority in that other Member State is aware of irregularities in the conduct of the litigation funder, it shall directly inform the responsible supervisory authority.

Article 11

Exercise of the delegation

1.  The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.  The power to adopt delegated acts referred to in Article 10(2) shall be conferred on the Commission for a period of 5 years from... [date of entry into force of the basic legislative act or any other date set by the co-legislators].

The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the 5-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

3.  The delegation of power referred to in Article 10(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

5.  As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

6.  A delegated act adopted pursuant to Article 10(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of [two months] of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by [two months] at the initiative of the European Parliament or of the Council.

Chapter IV

Third party funding agreements and activities of litigation funders

Article 12

Content of third-party funding agreements

Member States shall ensure that third-party funding agreements are required to be provided in writing in one of the official languages of the Member State in which the claimant and intended beneficiaries are resident, and presented in a clear and easily comprehensible manner and include as a minimum:

a.  the different costs and expenses that the litigation funder will cover;

b.  the share of any award or fees that will be paid to the litigation funder or any other third party, or any other financial costs to be borne, directly or indirectly, by the claimants, the intended beneficiaries, or both;

c.  a reference to the responsibility of the litigation funder as regards adverse costs, in accordance with Article 18 of this Directive;

d.  a clause specifying that any awards from which the fees of the funder are deductible will be paid in full first to the claimants who may then subsequently pay any agreed sums to litigation funders as fees or commission, retaining at least the minimum amounts provided for in this Directive;

e.  the risks that the claimants, intended beneficiaries or both are assuming, including:

i.  the scope for escalating costs in the litigation, and how that impacts the financial interests of the claimants, beneficiaries or both;

ii.  the strictly defined circumstances in which the third-party funding agreement can be terminated and the risks to claimants, beneficiaries or both in that scenario, and

iii.  any potential risk of having to pay adverse costs, including circumstances in which adverse costs insurance or indemnities may not cover such exposure.

f.  a disclaimer with regard to non-conditionality of funding in relation to procedural steps;

g.  a declaration of absence of conflict of interest by the litigation funder.

Article 13

Transparency requirements and avoidance of conflicts of interest

1.  Member States shall require litigation funders to establish a policy and to implement internal processes for the avoidance and resolution of conflicts of interest. That policy and those internal processes shall be appropriate to the nature, scale and complexity of the litigation funder’s business, and shall be set out in writing and made publicly available on the litigation funder’s website. They shall also be clearly stated in an annex to any third-party funding agreement.

2.  Member States shall require litigation funders to disclose to a claimant and intended beneficiaries in the third-party funding agreement all information that may reasonably be perceived as having the potential to give rise to a conflict of interest. Litigation funders’ disclosures shall include at least the following:

(a)  details of any arrangements that exist, financial or otherwise, between the litigation funder and any other undertaking that relate to the proceedings, including any arrangements with any relevant qualified entity, claims aggregator, lawyers, or other interested party;

(b)  details of any relevant connection between the litigation funder and a defendant in the proceedings, in particular in relation to any situation of competition.

Article 14

Invalid agreements and clauses

1.  Member States shall ensure that third-party funding agreements concluded with natural or legal persons who are not authorised to act as a litigation funder have no legal effect.

2.  Member States shall ensure that third-party funders are not permitted to influence the decisions of a claimant in the course of proceedings in a manner that would benefit the litigation funder itself at the expense of the claimant. To that end, any clause in third-party funding agreements granting a litigation funder the power to take or influence decisions in relation to proceedings shall have no legal effect. Any such clause or arrangement consisting of, inter alia, the following shall have no legal effect:

(a)  the grant of an explicit power to a litigation funder to take or influence decisions in the course of proceedings, such as with respect to specific claims pursued, settlement of the case, or management of expenses associated with the proceedings;

(b)  the provision of capital or any other resource with a monetary value for the purposes of proceedings, contingent on the approval by third-party funders of its specific use.

3.  Member States shall provide that agreements in which a litigation funder is guaranteed to receive a minimum return on its investment before a claimant or intended beneficiary can receive their share have no legal effect.

4.  Absent exceptional circumstances, where a litigation funding agreement would entitle a litigation funder to a share of any award that would dilute the share available to the claimant and the intended beneficiaries to 60% or less of the total award, including all damages amounts, costs, fees and others expenses, such an agreement shall have no legal effect.

5.  Member States shall ensure that third-party funding agreements do not contain provisions that limit the liability of a litigation funder in the event of an order for adverse costs following unsuccessful proceedings. Provisions that purport to limit a litigation funder’s liability for costs shall have no legal effect.

6.  Member States shall ensure that the conditions governing third-party funding agreements do not permit the withdrawal of that funding, save in prescribed circumstances defined by national law in accordance with Article 15(1).

7.  Claimants and intended beneficiaries shall be indemnified in respect of any losses caused by a litigation funder that entered into a third-party funding agreement which is found to be invalid. The rights of the claimants and of the intended beneficiaries of the proceedings shall not be affected.

Article 15

Termination of third-party funding agreements

1.  Member States shall prohibit the unilateral termination of a third-party funding agreement by a litigation funder without the claimant’s informed consent, except where a court or administrative authority has granted the litigation funder permission to terminate the agreement, having considered whether the interests of the claimant and intended beneficiaries would be adequately protected despite the termination.

2.  Sufficient notice as provided for in national law shall be required to be given in order to terminate the third-party funding agreement.

Chapter V

Review by courts or administrative authorities

Article 16

Disclosure of the third-party funding agreement

1.  Member States shall ensure that claimants or their representatives are required to inform the relevant court or administrative authority of the existence of a third-party funding agreement and of the identity of the litigation funder and to provide, at the request of the court or the administrative authority or of the defendant, to the relevant court or administrative authority, a complete and unredacted copy of such third-party funding agreements relating to the proceedings concerned to the relevant court or administrative authority at the earliest stage of those proceedings. Member States shall also ensure that defendants are made aware by the court or the administrative authority of the existence of a third-party funding agreement, and of the identity of the litigation funder.

2.  Member States shall ensure that courts or administrative authorities are empowered to review the third-party funding agreement in accordance with Article 17, at the request of a party to the proceedings, where that party has justified doubts in respect of the compliance of such third-party funding agreement with this Directive and any other applicable national law, or on their own initiative.

Article 17

Review of third-party funding agreements by courts or administrative authorities

Member States shall designate the competent court or administrative authority to perform the different judicial and administrative tasks provided for under this Directive. Such designation shall in particular specify that the court or administrative authority before which a privately funded case is brought is to conduct controls, without undue delay and at the request of a party to the proceedings or on their own initiative, on the impact of funding agreements on the cases before them, by exercising powers:

(a)  to make orders or give directions that are binding on a litigation funder, such as requiring the litigation funder to provide the funding as agreed in the relevant third-party funding agreement or requiring the litigation funder to make changes in respect of the relevant funding;

(b)  to assess the compliance of each third-party funding agreement with the provisions laid down in this Directive, particularly with the fiduciary duty owed to claimants and intended beneficiaries under Article 7, and, where that agreement is found not to be compliant, order the litigation funder to make the necessary changes, or declare a clause to be null and void in accordance with Article 14;

(c)  to evaluate the conformity of each third-party funding agreement with respect to the transparency requirements under Article 13;

(d)  to assess whether a third-party funding agreement entitles a litigation funder to an unfair, disproportionate or unreasonable share of any award as described in Article 14(4), and to annul or adjust such an agreement accordingly. Member States shall specify that in making such an assessment, competent courts or administrative authorities may take into consideration the characteristics and circumstances of the intended or ongoing proceedings including, as appropriate:

(i)  the parties that are involved in the case, as well as the intended beneficiaries of the proceedings, and what they understood to be agreed as regards the amount the litigation funder would receive under the funding agreement, upon a successful outcome;

(ii)  the likely value of any award;

(iii)  the value of a litigation funder’s financial contribution and the proportion of the claimant’s overall costs that is funded by the litigation funder, and

(iv)  the proportion of any award that the claimant and intended beneficiaries stand to receive;

(e)  to impose any penalty the court or administrative authority deems appropriate to ensure compliance with this Directive;

(f)  to consult or seek expertise from persons with appropriate knowledge and independence to assist in the performance of the court’s or administrative authority’s assessment powers, including from any suitably qualified expert or from supervisory authorities.

Article 18

Responsibility for adverse costs

1.  Where the claimant party has insufficient resources to meet adverse costs, Member States shall ensure that courts or administrative authorities are empowered to make cost orders against litigation funders, whether jointly or severally with claimants, following an unsuccessful outcome in proceedings. In such a case, courts or administrative authorities may require litigation funders to pay any appropriate adverse costs, having regard to:

(a)  the value and proportion of any award that the litigation funder would have received had the claim been successful;

(b)  the extent to which any costs that are not paid by a litigation funder would instead fall on a defendant, the claimant, or any other intended beneficiaries;

(c)  the conduct of the litigation funder throughout the proceedings and, in particular, its compliance with this Directive and whether its conduct has contributed to the overall cost of the proceedings; and

(d)  the value of the litigation funder’s initial investment.

Chapter VI

Final provisions

Article 19

Sanctions

1.  Member States shall lay down the rules on sanctions applicable to infringements of national provisions adopted pursuant to this Directive and shall take all measures necessary to ensure that they are implemented. The sanctions provided for shall be effective, proportionate and dissuasive. Member States shall, [by …/without delay], notify the Commission of those rules and of those measures and shall notify it [, without delay,] of any subsequent amendment affecting them.

2.  Supervisory authorities may in particular impose proportionate fines calculated on the basis of an undertaking’s turnover, temporarily or indefinitely withdraw the authorisation to operate, and may impose other appropriate administrative sanctions.

Article 20

Review

1.  No later than ...[(...) years after the date of application of this Directive], the Commission shall carry out an evaluation of this Directive and present a report on the main findings to the European Parliament, the Council and the European Economic and Social Committee. The evaluation shall be conducted in accordance with the Commission’s better regulation guidelines. In the report, the Commission shall, in particular, assess the effectiveness of the Directive, with particular regard to the level of fees or interest deducted from claimants’ awards, including from intended beneficiaries, for the benefit of litigation funders, the impact litigation funders have on the level of dispute resolution activity and the extent to which third-party litigation funding has allowed better access to justice.

2.  Member States shall provide the Commission, for the first time by ...[(...) years after the date of application of this Directive] and annually thereafter, with the following information necessary for the preparation of the report referred to in paragraph 1:

(a)  the identity, number and type of entities that are recognised as authorised litigation funders;

(b)  any changes to that list and the reasons therefor;

(c)  the number and type of proceedings that are funded in whole or in part by a litigation funder;

(d)  the outcomes of those proceedings in terms of the amounts earned by litigation funders in comparison to the awards made to claimants and intended beneficiaries.

Article 21

Transposition

1.  Member States shall adopt and publish, by ... [day/month/year], the laws, regulations and administrative provisions necessary to comply with this Directive. They shall immediately inform the Commission thereof.

They shall apply those measures from ... [day/month/year].

When Member States adopt those measures, they shall contain a reference to this Directive or shall be accompanied by such a reference on the occasion of their official publication. The methods of making such a reference shall be laid down by Member States.

2.  Member States shall communicate to the Commission the text of the measures of national law which they adopt in the field covered by this Directive.

Article 22

Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Article 23

Addressees

This Directive is addressed to the Member States.

(1) OJ L 262, 7.10.2005, p. 1.
(2) OJ L 409, 4.12.2020, p. 1.
(3) https://www.biicl.org/documents/1881_StudyontheStateofCollectiveRedress.pdf, page 19.
(4) https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0040&from=EN, page 10.
(5) The Australian Parliament concluded “the level of power and influence litigation funders have in class actions gives rise to situations where their financial interests trump those of the representative plaintiff and class members”, see Australian Law Reform Commission (2019): An Inquiry into Class Action Proceedings and Third-Party Litigation funders, p. 19.
(6) EPRS Study (2021): Responsible private funding of litigation. Annex - State of play of the EU private litigation funding landscape and the current EU rules applicable to private litigation funding.
(7) See https://www.biicl.org/documents/1881_StudyontheStateofCollectiveRedress.pdf, p. 269: 'The general view of the UKs approach to third party funding was favourable and respondents rated the availability of such funding a key factor in their decision to participate in collective proceedings. The experience of third party funding of collective claims in practice was, overall, a positive one. None of the respondents had any experience of an organisation attempting to fund a claim against a competitor. None of the respondents had had an experience where a funder had overtly attempted to control the litigation although one lawyer described a situation where a funder had withdrawn funding part way through the claim leading to a premature settlement of the case'.
(8) See Australian Law Reform Commission (2019): An Inquiry into Class Action Proceedings and Third-Party Litigation funders, p 34.
(9) EPRS Study (2021): Responsible litigation funding. State of play on the EU private litigation funding landscape and on the current EU rules applicable to private litigation funding, p. 28 -29.
(10) OJ […]
(11) OJ […]


Interim report on the 2021 proposal for a revision of the Multiannual Financial Framework
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European Parliament resolution of 13 September 2022 on the 2021 proposal for a revision of the Multiannual Financial Framework (COM(2021)05692021/0429R(APP))
P9_TA(2022)0309A9-0227/2022

The European Parliament,

–  having regard to Articles 310, 311, 312 and 323 of the Treaty on the Functioning of the European Union (TFEU),

–  having regard to the Commission proposal of 22 December 2021 for a Council regulation amending Regulation (EU, Euratom) 2020/2093 laying down the multiannual financial framework for the years 2021 to 2027 (COM(2021)0569),

–  having regard to the Commission proposal of 14 July 2021 for a regulation of the European Parliament and of the Council establishing a Social Climate Fund (COM(2021)0568),

–  having regard to the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources(1) (‘the IIA’),

–  having regard to Rule 105(5) of its Rules of Procedure,

–  having regard to the interim report of the Committee on Budgets (A9-0227/2022),

A.  whereas the Commission’s 22 December 2021 proposals to establish the next generation of own resources for the Union budget and to revise the multiannual financial framework (‘the MFF’) for the period 2021-2027 are inextricably linked to the Fit for 55 package put forward on 14 July 2021;

B.  whereas, pursuant to Article 311 TFEU, the Union must provide itself with the means to attain its objectives and carry through its policies;

C.  whereas, in line with Parliament’s long-standing position, new policy commitments and objectives need to be matched with fresh money, and are not to be financed at the expense of other Union programmes and priorities;

D.  whereas incorporating the Social Climate Fund fully into the Union budget is a Treaty requirement by way of Article 310(1) TFEU and a prerequisite to, inter alia, respect the Community method, guarantee parliamentary accountability, oversight and control, ensure predictability of funding and multiannual programming, and safeguard the transparency of the budgetary decisions taken at Union level;

E.  whereas, in the event of an increase in the carbon price compared to the initial assumption, an additional allocation should be made available for the Social Climate Fund on an annual basis commensurately with the rate of increase of the carbon price, in order to further support vulnerable households and transport users in the transition towards climate neutrality; whereas such annual reinforcements should be accommodated within the MFF by means of an automatic carbon price fluctuation adjustment of the ceiling of heading 3 ‘Natural Resources and Environment’ and the payment ceiling;

F.  whereas, pursuant to Article 312(5) TFEU, and as further defined in the IIA, the European Parliament, the Council and the Commission are required to take any measure necessary to facilitate the adoption of a new or revised MFF;

1.  Expresses its position solely on the Commission’s proposal of 22 December 2021 for a revision of the 2021-2027 MFF, thereby opting for a targeted approach limited to, and in full alignment, with its position on the Fit for 55 package;

2.  States, however, that a broader revision of the current MFF is needed as it was already pushed to its limits in its first year; points to the multiple crises and challenges that the Union has been addressing, in particular the war in Ukraine and its repercussions, and the substantial financing needs it has generated; calls, therefore, on the Commission to conduct an in-depth review of the functioning of the current MFF and proceed with a legislative proposal for a comprehensive MFF revision as soon as possible and no later than the first quarter of 2023; intends to further detail its requests for that revision in a dedicated report;

3.  Fully supports the incorporation of the Social Climate Fund in the Union budget and the MFF as part of its long-standing position that all Union programmes and funds are to be included in the budget; welcomes, therefore, the Commission proposal as a starting point as regards the increase of the ceiling for commitment appropriations of heading 3 ‘Natural Resources and Environment’ and the ceiling for payment appropriations, which is a necessary pre-condition so that the financing of the Social Climate Fund is not detrimental to other Union programmes and priorities;

4.  Underlines, however, that some modifications are necessary to reflect Parliament’s position on the Fit for 55 package, including on the revised financial envelope of the Social Climate Fund, which reflects the relevant provisions in Directive 2003/87/EC of the European Parliament and of the Council(2) as amended;

5.  Supports the proposal for a specific annual adjustment based on new own resources; considers it to be in line with the principle, as set out in the IIA, that expenditure from the Union budget related to the repayment of the European Union Recovery Instrument should not lead to an undue reduction in programme expenditure or investment instruments under the MFF, while adhering to the budgetary principle of universality of revenue; reaffirms, therefore, that such an annual adjustment depends on the introduction of new own resources in line with the roadmap set out in the IIA;

6.  Asks the Council and the Commission to take into account the following recommendations and modifications:

   (i) the impact of the revised financial envelope of the Social Climate Fund should be reflected throughout this regulation, including in its annex;
   (ii) an automatic technical adjustment of the ceilings for commitment appropriations of heading 3 ‘Natural Resources and Environment’ and the ceiling for payment appropriations should be introduced to ensure that additional allocations are made available for the Social Climate Fund in the event of an increase of carbon price to a level higher than the initial assumption;
   (iii) the specific annual adjustment based on new own resources should be amended to ensure it can be prolonged in case of a delayed adoption of the following MFF, in line with article 312(4) TFEU;
   (iv) the proposal for a Council regulation should be modified as follows:
Text proposed by the Commission   Modification
Modification 1
Proposal for a regulation
Recital 3
(3)  The introduction of EU emissions trading for the buildings and road transport sectors, as set out in Directive 2003/87/EC of the European Parliament and of the Council14, may give rise to short term social impacts. To address this challenge, Regulation (EU) [XXX] final of the European Parliament and of the Council established15 a Social Climate Fund, to be financed by the general budget of the Union under the multiannual financial framework. The ceiling for commitment appropriations of heading 3, ‘Natural Resources and Environment’, and the ceiling for payment appropriations should therefore be adapted for the years 2025, 2026 and 2027.
(3)  The introduction of EU emissions trading for the buildings and road transport sectors, as set out in Directive 2003/87/EC of the European Parliament and of the Council14, may give rise to short term social impacts. To address this challenge, Regulation (EU) [XXX] final of the European Parliament and of the Council established15 a Social Climate Fund, to be financed by the general budget of the Union under the multiannual financial framework. The ceiling for commitment appropriations of heading 3, ‘Natural Resources and Environment’, and the ceiling for payment appropriations should therefore be adapted for the years 2024, 2025, 2026 and 2027. In the event of a higher carbon price compared to the initial assumption, an additional allocation should be made available for the Social Climate Fund on an annual basis commensurately with the rate of increase of the carbon price, in order to further support vulnerable households and users of transport in the transition towards climate neutrality. Such annual reinforcements should be accommodated within the multiannual financial framework by means of an automatic carbon price fluctuation adjustment of the ceiling for commitment appropriations of heading 3 ‘Natural Resources and Environment’, and the ceiling for payment appropriations.
___________________
_______________________
14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
14 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
5 OJ […], […], p. […].
5 OJ […], […], p. […].
Modification 2
Proposal for a regulation
Recital 3 a (new)
(3a)  The Commission should present a proposal for a new multiannual financial framework before 1 July 2025, to enable the institutions to adopt it sufficiently in advance of the start of the subsequent multiannual financial framework. In accordance with Article 312(4) TFEU, the ceilings and other provisions, including the adjustments to the multiannual financial framework set out in Chapter 2, corresponding to the last year of the multiannual financial framework set out in this Regulation are to continue to apply in the event that a new multiannual financial framework is not adopted before the end of the term of the multiannual financial framework laid down in this Regulation.
Modification 3
Proposal for a regulation
Article 1 – paragraph 1
(1)  in Article 4, paragraph 4 is replaced by the following:
(1)  Article 4 is amended as follows:
(a)  in paragraph 1, the following point is added:
‘(f) a calculation of the additional allocations based on the carbon price fluctuation and the result of the annual adjustment referred to in Article 4b’;
(b)  paragraph 4 is replaced by the following:
‘4. Without prejudice to Articles 4a, 6 and 7, no further technical adjustments shall be made in respect of the year concerned, either during the year or as ex post corrections during subsequent years.’;
4. Without prejudice to Articles 4a, 4b, 6 and 7, no further technical adjustments shall be made in respect of the year concerned, either during the year or as ex post corrections during subsequent years.;
Modification 4
Proposal for a regulation
Article 1 – paragraph 2
(2)  the following Article 4a is inserted:
(2)  the following Articles are inserted:
‘Article 4a
‘Article 4a
Specific annual adjustment based on new own resources
Specific annual adjustment based on new own resources
1.  Starting in 2024, after the submission of the provisional accounts of the year n-1 in accordance with Article 245(3) of the Financial Regulation, an upward adjustment to the expenditure ceiling for commitment appropriations of sub-heading 2b and to the ceiling for payment appropriations for the current year shall be made.
1.  Starting in 2024, after the submission of the provisional accounts of the year n-1 in accordance with Article 245(3) of the Financial Regulation, an upward adjustment to the expenditure ceiling for commitment appropriations of sub-heading 2b and to the ceiling for payment appropriations for the current year shall be made.
2.  This annual adjustment shall be of the following amounts:
2.  This annual adjustment shall be of the following amounts:
(a)  for the years 2024, 2025 and 2026, an amount equivalent to the revenue which has been entered in the provisional accounts referred to in paragraph 1 stemming from the resources set out in Article 2(1), points (e), (f) and (g), of the Own Resources Decision.
(a)  for the years 2024, 2025 and 2026, an amount equivalent to the revenue which has been entered in the provisional accounts referred to in paragraph 1 stemming from the resources set out in Article 2(1), points (e), (f) and (g), of the Own Resources Decision.
(b)  for the year 2027, an amount equivalent to the revenue which has been entered in the provisional accounts referred to in paragraph 1 stemming from the resources set out in Article 2(1), points(e), (f) and (g), of the Own Resources Decision, reduced by a fixed amount of EUR 8 000 million (in 2018 prices).
(b)  for the year 2027, an amount equivalent to the revenue which has been entered in the provisional accounts referred to in paragraph 1 stemming from the resources set out in Article 2(1), points(e), (f) and (g), of the Own Resources Decision, reduced by a fixed amount of EUR 2 800 million (in 2018 prices).
The annual adjustments referred to in the first subparagraph shall not exceed EUR 15 000 million (in 2018 prices) per year for the years 2024 to 2027.
The annual adjustments referred to in the first subparagraph shall not exceed EUR 15 000 million (in 2018 prices) per year for the years 2024 to 2027.
3.  The Commission shall communicate the results of the annual adjustments referred to in paragraph 2 to the European Parliament and to the Council within 15 days of submission of the provisional accounts for year n-1 in accordance with Article 245(3) of the Financial Regulation.’;
3.  The Commission shall communicate the results of the annual adjustments referred to in paragraph 2 to the European Parliament and to the Council within 15 days of submission of the provisional accounts for year n-1 in accordance with Article 245(3) of the Financial Regulation.’;
Article 4b
Specific annual adjustment based on carbon price fluctuation
1.  Starting in 2025, an annual upward adjustment to the expenditure ceiling for the commitment appropriations of heading 3 ‘Natural Resources and Environment’ and to the ceiling for payment appropriations for the current year shall be made in the event that the average carbon price calculated in year n-1 is higher than the initial assumption.
2.  The annual upward adjustment referred to in paragraph 1 of this Article shall be equivalent to the amount calculated by multiplying the annual allocation deriving from the financial envelope set out in Article 9 of Regulation (EU) [XXX] of the European Parliament and of the Council establishing a Social Climate Fund by the percentage by which the average carbon price calculated in year n-1 exceeded the initial assumption.’;
Modification 5
Proposal for a regulation
Article 1 – paragraph 3
(3)  in Article 11(3), the second subparagraph is replaced by the following:
(3)  in Article 11(3), the second subparagraph is replaced by the following:
‘Amounts corresponding to the upward adjustments referred to in Article 4a(1) and in the second subparagraph of Article 5(2) shall be in addition to the maximum amounts referred to in the first subparagraph of this paragraph.’;
‘Amounts corresponding to the upward adjustments referred to in Article 4a(1), Article 4b and in the second subparagraph of Article 5(2) shall be in addition to the maximum amounts referred to in the first subparagraph of this paragraph.’;
Modification 6
Proposal for a regulation
Article 1 – paragraph 4
(4)  Annex I is replaced by the text in the Annex to this Regulation.
(4)  Annex I is replaced by the following:

‘ANNEX I

MULTIANNUAL FINANCIAL FRAMEWORK (EU-27)

(EUR million 2018 prices)

COMMITMENT APPROPRIATIONS

2021

2022

2023

2024

2025

2026

2027

Total 2021-2027

1.  Single Market, Innovation and Digital

19 712

 

19 133

18 633

18 518

18 646

18 473

133 326

2.  Cohesion, Resilience and Values

49 741

51 920

52 194

53 954

55 182

56 787

58 809

378 587

2a.  Economic, social and territorial cohesion

45 411

45 951

46 493

47 130

47 770

48 414

49 066

330 235

2b.  Resilience and Values

4 330

5 969

5 701

6 824

7 412

8 373

9 743

48 352

3.  Natural Resources and Environment

55 242

52 214

51 489

[50 617]

[51 895]

[58 064]

[56 947]

[376 468]

Of which: Market related expenditure and direct payments

38 040

37 544

37 604

36 983

36 373

35 772

35 183

257 499

4.  Migration and Border Management

2 324

2 947

3 164

3 282

3 672

3 682

3 736

22 807

5.  Security and Defence

1 700

1 725

1 737

1 754

1 928

2 078

2 263

13 185

6.  Neighbourhood and the World

15 309

15 522

14 789

14 056

13 323

12 592

12 828

98 419

7.  European Public Administration

10 021

10 215

10 342

10 454

10 554

10 673

10 843

73 102

Of which: Administrative expenditure of the institutions

7 742

7 878

7 945

7 997

8 025

8 077

8 188

55 852

TOTAL COMMITMENT APPROPRIATIONS

154 049

154 754

152 848

[152 750]

[155 072]

[162 522]

[163 899]

[1 095 894]

TOTAL PAYMENT APPROPRIATIONS

156 557

156 322

149 936

[149 936]

[152 112]

[159 068]

[158 722]

[1 082 652]

‘.

7.  Stands ready to enter into negotiations to improve the Commission proposal;

8.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ L 433 I, 22.12.2020, p. 28.
(2) Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).


New EU forest strategy for 2030 – Sustainable Forest Management in Europe
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European Parliament resolution of 13 September 2022 on a new EU Forest Strategy for 2030 – Sustainable Forest Management in Europe (2022/2016(INI))
P9_TA(2022)0310A9-0225/2022

The European Parliament,

–  having regard to the Commission communication of 16 July 2021 entitled ‘New EU Forest Strategy for 2030’ (COM(2021)0572),

–  having regard to its resolution of 8 October 2020 on the European Forest Strategy – The Way Forward(1),

–  having regard to its resolution of 28 April 2015 on ‘A new EU Forest Strategy: for forests and the forest-based sector’(2),

–  having regard to the Treaty on the Functioning of the European Union (TFEU), in particular Article 4 thereof,

–  having regard to the UN 2030 Agenda for Sustainable Development and the Sustainable Development Goals,

–  having regard to the Agreement adopted at the 21st Conference of the Parties to the UN Framework Convention on Climate Change (COP21) in Paris on 12 December 2015 (the Paris Agreement),

–  having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640), and the ensuing political guidelines from Commission President Ursula von der Leyen and the Commission,

–  having regard to Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (European Climate Law)(3),

–  having regard to Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU(4),

–  having regard to Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources(5) (Renewable Energy Directive),

–  having regard to Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora (the Habitats Directive)(6),

–  having regard to Commission Delegated Regulation (EU) 2021/268 of 28 October 2020 amending Annex IV to Regulation (EU) 2018/841 of the European Parliament and of the Council as regards the forest reference levels to be applied by the Member States for the period 2021-2025(7),

–  having regard to the Commission communication of 20 May 2020 entitled ‘EU Biodiversity Strategy for 2030 – Bringing nature back into our lives’ (COM(2020)0380),

–  having regard to the Commission communication of 10 March 2020 entitled ‘A New Industrial Strategy for Europe’ (COM(2020)0102),

–  having regard to the Commission communication of 30 June 2021 entitled ‘A long-term Vision for the EU’s Rural Areas – Towards stronger, connected, resilient and prosperous rural areas by 2040’ (COM(2021)0345),

–  having regard to the Commission communication of 14 October 2020 entitled ‘A Renovation Wave for Europe – greening our buildings, creating jobs, improving lives’ (COM(2020)0662),

–  having regard to the Commission communication of 11 October 2018 entitled ‘A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment’ (COM(2018)0673),

–  having regard to the Commission Communication of 23 March 2022 on safeguarding food security and reinforcing the resilience of food systems (COM(2022)0133),

–  having regard to the New European Bauhaus Initiative,

–  having regard to the draft Commission regulation declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union and repealing Commission Regulation (EU) No 702/2014(8),

–  having regard to the Council conclusions of 5 November 2021 on the new EU Forest Strategy for 2030,

–  having regard to the opinion of the European Economic and Social Committee of 8 December 2021 on the Commission communication entitled ‘New EU Forest Strategy for 2030’(9),

–  having regard to the opinion of the European Committee of the Regions of 28 April 2022 on the Commission communication entitled ‘New EU Forest Strategy for 2030’,

–  having regard to the responsibilities of the Member States under the UN Convention to Combat Desertification,

–  having regard to the European Court of Auditors report of 2021 entitled ‘Special Report 21/2021 – EU funding for biodiversity and climate change in EU forests: positive but limited results’,

–  having regard to the Commission publication of 2018 entitled ‘Guidance on cascading use of biomass with selected good practice examples on woody biomass’,

–  having regard to the 2020 report of the Commission’s Joint Research Centre entitled ‘Mapping and Assessment of Ecosystems and their Services: An EU ecosystem assessment’,

–  having regard to the European Environmental Agency report of 2020 entitled ‘State of nature in the EU – Results from reporting under the nature directives 2013-2018’,

–  having regard to the Forest Europe report of 2020 entitled ‘State of Europe’s Forests 2020’,

–  having regard to the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) global assessment report on biodiversity and ecosystem services,

–  having regard to the Kunming Declaration –‘Ecological Civilization: Building a Shared Future for All Life on Earth’,

–  having regard to the report of Working Group II of the Intergovernmental Panel on Climate Change (IPCC) entitled ‘Climate Change 2022: Impacts, Adaptation and Vulnerability’,

–  having regard to the IPCC special report on climate change, desertification, land degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems,

–  having regard to the judgment of the Court of Justice of the European Union of 17 April 2018 in Case C-441/17 European Commission v Republic of Poland(10),

–  having regard to the projects and practices for coordinating forest information in Europe (the European National Forest Inventory Network (ENFIN), the FutMon project, the Diabolo project, the European Atlas of Forest Tree Species, and the Mapping and Assessment of Ecosystems and their Services (MAES) programme),

–  having regard to the IPBES-IPCC co-sponsored workshop report on biodiversity and climate change of 10 June 2021,

–  having regard to Rule 54 of its Rules of Procedure,

–  having regard to the opinions of the Committee on the Environment, Public Health and Food Safety and the Committee on Development,

–  having regard to the report of the Committee on Agriculture and Rural Development (A9-0225/2022),

A.  whereas the EU has set the binding targets of reducing greenhouse gas emissions by at least 55 % by 2030 and of reaching climate neutrality by 2050(11) at the latest; whereas the EU is committed to the UN Sustainable Development Goals (SDGs), including SDG 15 which is to protect, restore and promote the sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation and halt biodiversity loss, and to the Paris Agreement and the pledges made at the 2021 UN Climate Change Conference (COP26); whereas forests and forest-based industries and services, as well as owners and workers, will play a major and irreplaceable role in achieving the SDGs and the Paris Agreement targets, while forest ecosystems and their carbon pools are essential for climate mitigation and adaptation, since they absorb and store around 10 % of Europe’s greenhouse gas emissions(12) and are major hosts of biodiversity;

B.  whereas Article 4 TFEU provides for shared competences and responsibility with regard to forests, particularly within the framework of EU environmental policy, while making no reference to a common EU forest policy and thus maintaining forest policy as a Member State competence; whereas due to the high diversity of the EU’s forests with regard to biogeography, structure, size, biodiversity, ownership patterns and existing policies, where environmental, climate and other relevant policies touch upon forests, it is necessary to duly apply the principles of subsidiarity and proportionality in the development and implementation of the new EU Forest Strategy (the strategy) and relevant EU legislation; whereas details related to forest management need to be adjusted at national and regional level, taking a bottom-up approach; whereas further EU-level coordination is necessary to better achieve the objectives of the European Green Deal and to be able to calculate potential emission reductions and forest use limits more precisely in view of the important role of forests in achieving European climate objectives;

C.  whereas the principle of the European Green Deal as a cross-cutting approach to tackle the climate and environmental challenges, ensuring that nature and biodiversity can be appropriately protected, in a way that creates sustainable growth and jobs in a resource-efficient, carbon-neutral and fully circular and competitive economy within planetary boundaries, should guide the implementation of the strategy in managing trade-offs, creating synergies and finding the right balance between the multiple functions of forests, including the socioeconomic, environmental and climate functions; whereas an ‘ecosystem’ is a physical environment made up of living and non-living components that interact with one another; whereas from these interactions, ecosystems create a flow of benefits to people and the economy called ‘ecosystem services’; whereas climate change and the loss of biodiversity and the associated ecosystem services pose a systemic threat to society; whereas forests provide a wide array of ecosystem services, such as the provision of wood, non-wood products and food, carbon sequestration, shelter for biodiversity, clean air and water, benefits for the local climate, and protection against natural hazards such as avalanches, flooding, drought and rockfall, as well as providing recreational, cultural and historic value; whereas the aim of sustainable forest management is to ensure the balanced provision of the various ecosystem services and to support climate change adaptation and mitigation efforts;

D.  whereas wood-based products contribute to climate change mitigation by storing carbon and substituting products with a large carbon footprint, including building- and packaging materials, textiles, chemicals and fuels; whereas wood-based products are renewable and to a large extent recyclable, and as such have huge potential to support a circular bioeconomy; whereas this makes the forestry sector and the forest-based industries key actors in a green economy;

E.  whereas as part of the ‘Fit for 55’ package and the target of aligning climate policy with the Paris Agreement, the Renewable Energy Directive and the Regulation on the Inclusion of Greenhouse Gas Emissions from Land Use, Land Use Change and Forestry(13) are under revision; whereas the Commission has proposed a regulation on deforestation-free products; whereas in the light of the European concept of multifunctional forests, these initiatives must be coherent with the high-level political targets of the Green Deal, the Bioeconomy Action Plan, the Circular Economy Strategy, the Forest Strategy, the Biodiversity Strategy and the Long-Term Vision for Rural Areas;

F.  whereas forest ownership across Europe is diverse in terms of size and ownership structure, leading to a great diversity of management models; whereas about 60 % of the EU’s forests are owned by 16 million private forest owners(14), of whom a significant share are small-holders(15), while approximately 40 % of the EU’s forests are under different forms of public ownership; whereas a small number of forest owners own a significant share of the total forest area, some of whom own the main EU wood processing plants; whereas involving, supporting and encouraging, before resorting to penalising, these owners through a comprehensive policy and legislative framework that provides legal certainty, and that is based on recognition of their property rights, their experience as managers, the importance of the revenue generated through forest management and specific challenges, will be key to achieving the strategy’s targets, including the provision of climate and other ecosystem services; whereas it is important, in this regard, to ensure that this framework is clear and transparent and to avoid an excessive administrative burden on all actors;

G.  whereas the EU is home to approximately 5 % of the world’s total forest area, with forests accounting for 43 % of the EU’s land area, a slightly higher proportion than the area of land used for agriculture, and containing 80 % of its terrestrial biodiversity(16); whereas, according to the European Environment Agency report entitled ‘The European environment – state and outlook 2020: knowledge for transition to a sustainable Europe’(17), Europe has experienced a massive decline in biodiversity; whereas almost 23 % of European forests are to be found in Natura 2000 sites, with the share in some Member States exceeding 50 %; whereas almost half the natural habitats in Natura 2000 areas are forests;

H.  whereas the most recent data gathered under Article 17 of the Habitats Directive indicates that the habitat parameter condition shows that only 49 % of forest habitats are in good condition(18), while the status of 29,6 % of habitats is unknown and 21,1 % are in poor condition and need to be improved; whereas focusing solely on aggregated data might be insufficient to identify and address key information on the most urgent issues and it is therefore necessary to consult more specific indicators on trends in condition and pressures and to ensure that missing data is available in the future; whereas these indicators do not support an overall negative assessment of the state of the EU’s forests, but show both positive and negative trends(19) that require nuanced case-by-case responses; whereas forests are increasingly vulnerable to the impacts of climate change, in particular the increasing prevalence of forest fires; whereas quantifying the effects of such disturbances on forests’ resilience and productivity on a large scale is still a major challenge;

I.  whereas a greater understanding of potential climate-driven natural disturbances of European forests should further support guidance on forest management and inform adaptation policies aimed at addressing these vulnerabilities;

J.  whereas the collection and maintenance of transparent and reliable high-quality data, the exchange of knowledge and best practices, and adequately funded and well-coordinated research are of central importance in meeting the challenges and yielding opportunities and in delivering on the multiple functions of forests, including the various benefits provided by the products of forest-based industries, in an increasingly complex environment; whereas the data on forests available at EU level is incomplete and of varying quality, which hampers EU and Member State coordination of forest management and conservation; whereas, in particular, there is a need for better monitoring of forest ecosystem status, as well as of the impacts of forestry measures on biodiversity and the climate;

K.  whereas at international level, the UN Food and Agriculture Organization (FAO) is the main forum for the development of internationally agreed definitions in the field of forests and forestry; whereas the FAO collects and provides data on forests and forestry; whereas the Commission and the Member States contribute to the work of the FAO;

L.  whereas the provision of the various forest ecosystem services through the forestry sector and forest-based industries is an important pillar of income and employment, particularly in rural areas, but also in urban areas through the downstream use of such services; whereas the implementation of the strategy should pay due attention to the development of income and employment, but also to the attractiveness of employment in the sector through quality jobs, social protection, health and safety standards, the continuous development of skills partnerships involving stakeholders, and adequate training opportunities for managers and workers; whereas employment in European forestry dropped by a third between 2000 and 2015 – primarily owing to increased mechanisation in the wood and paper industry(20); whereas the improved design of forestry machinery can add to worker protection and reduce the impact on soil and water; whereas logging and the wood industry are among the most dangerous industrial sectors and have high levels of accidents at work, occupational disease and early retirement;

M.  whereas the area and biomass volume of European forests are increasing(21), in contrast to the worrying trends of deforestation globally; whereas the EU can play an important role in addressing global deforestation, which is underlined by the Commission’s proposal for a regulation for deforestation-free products; whereas beyond regulating imports, a European Forest Strategy that showcases best practices for economically viable sustainable forest management could contribute to improving forest management globally;

N.  whereas global voluntary certification schemes for sustainable forest management are currently in place; whereas certification schemes are an essential tool to meet EU Timber Regulation(22) requirements for due diligence(23);

O.  whereas the process of sustainable forest management in Europe should ensure that the right balance is achieved between the three pillars of sustainability – namely environmental protection, social development and economic development;

P.  whereas criteria and indicators to define sustainable forest management commonly used in the EU are based on pan-European cooperation within the Forest Europe process of which all Member States and the Commission are signatories; whereas as part of its ongoing work programme, Forest Europe has initiated a reassessment of the definition of sustainable forest management; whereas Forest Europe collects and provides information on the status of and trends in forests and forestry on the basis of the criteria for sustainable forest management; whereas there is a need to ensure that indicators and thresholds are evidence based and to work in close cooperation with the Member States in this respect; whereas new transparent indicators and thresholds could improve the sustainability of the sector, given its importance in terms of environmental, economic and social values; whereas the sustainable forest management framework will have to be clearly defined, in particular as regards the criteria, indicators and thresholds relating to ecosystem health, biodiversity and climate change, if it is to become a more detailed and useful screening tool for determining and comparing different management approaches, their impact and the overall status and conservation of European forests; whereas sustainable forest management should go hand in hand with promoting the multifunctional role of forests so as to ensure that it is completely in tune with the diversity of forests and the specific characteristics of each region;

Q.  whereas agroforestry, defined as land use systems in which trees are grown in combination with agriculture on the same land unit, is a suite of land management systems which can boost overall productivity, generate more biomass, maintain and restore soils, combat desertification and provide a number of valuable ecosystem services; whereas there are two main types of agroforestry in the EU: silvo-pastoral agroforestry (animals grazing or animal fodder produced under trees) and silvo-arable agroforestry (crops grown under trees, with row spacing allowing for tractor traffic); whereas the majority of existing agroforestry systems in the EU are silvo-pastoral systems and scaling up agroforestry can bring multiple benefits in the light of environmental pressures;

R.  whereas the EU’s Biodiversity Strategy for 2030 aims to ‘define, map, monitor and strictly protect all the EU’s remaining primary and old-growth forests’; whereas protecting forests, including all remaining EU primary and old-growth forests, is crucial for preserving biodiversity and mitigating climate change; whereas according to a 2021 Joint Research Centre report(24), only 4,9 million hectares of Europe’s primary and ancient forests remain, representing only 3 % of the Union’s total forest area and 1,2 % of the its land mass; whereas primary and old-growth forests play a key role in biodiversity conservation; whereas they are often highly biodiverse compared with other forests in the same ecological region, are species-rich and host specialised flora and fauna; whereas primary and old-growth forests also provide a wide array of other critical ecosystem services; whereas an operational definition of primary and old-growth forests is necessary for proper policy design, implementation and monitoring;

S.  whereas the Integrate Network is a platform of representatives of different European countries, initiated by several Member State governments and supported by the Commission’s Standing Forestry Committee, which provides scientific advice and has served to date as an important driver of identifying means to integrate nature conservation into sustainable forest management; whereas the platform’s work has played an important role in the exchange of experiences and best practices;

T.  whereas the Horizon 2020-funded Alterfor project considered the potential to optimise forest management methods currently in use and presented alternative forest management models, with opportunities and challenges listed for each alternative;

U.  whereas the Horizon 2020-funded SINCERE project developed novel policies and new business models by connecting knowledge and expertise from practice, science and policy, across Europe and beyond, aiming to explore new means to enhance forest ecosystem services in ways that benefit forest owners, as well as serving broad societal needs;

V.  whereas the war in Ukraine will have a major impact on imports of timber, particularly birchwood, of which Russia accounts for 80 % of global production, and on Europe’s wood-processing industry and exports of processed products; whereas the legitimate sanctions imposed on Russia raise the question of the EU’s dependency on timber imports from Russia; whereas the EU sources about 80 % of its demand for timber domestically, and imports from Russia only account for about 2 % of total consumption; whereas Finland and Sweden are the EU’s major importers of unprocessed roundwood from Russia and will be affected by trade bans(25);

W.  whereas illegal logging, including logging in protected areas such as Natura 2000 areas, is an ongoing and unresolved problem in a number of Member States;

X.  whereas forests are essential for people’s physical and mental health and wellbeing, drive the transition towards a fossil-free economy and play an important role in the lives of local communities, especially in rural areas where they contribute in an important way to local livelihoods;

1.  Welcomes the new EU Forest Strategy and its ambition to increase the balanced contribution of multifunctional forests to the targets of the Green Deal and its EU 2030 Biodiversity Strategy, particularly the goals of creating sustainable green growth and green jobs, and of achieving a carbon-neutral, environmentally sustainable and fully circular economy within planetary boundaries and climate neutrality by 2050 at the latest; highlights the importance of a solid science-based strategy, considering the environmental, social and economic dimensions of sustainability in an integrated and balanced way, given that, in addition to contributing to climate and biodiversity goals, including through the protection of soils and water, forests provide economic and social benefits and a wide range of services, from a means of livelihood to recreation;

2.  Regrets that the new EU Forest Strategy was not properly developed together with the European Parliament, Member States and stakeholders and that the positions of the co-legislators were not adequately taken into account; stresses the importance of strengthening cooperation as regards implementing the new EU Forest Strategy for 2030;

3.  Recognises that, in line with sustainable forest management and to increase the quality and diversity of forest ecosystems, the maintenance, protection, strengthening, restoration and sustainable use of healthy and resilient forests are fundamental goals of the EU Forest Strategy and of all actors in forestry and the forest-based value chain, using timber as a versatile, renewable raw material to maximise self-sufficiency in the EU; notes, moreover, that these goals are in line with societal expectations and demands and with the key priorities of people in the EU; highlights that close-to-nature forestry and sustainable forest management have the potential to bring similar or better economic benefits, while preserving and promoting the integrity and resilience of ecosystems, and increasing forests’ potential as carbon sinks and biodiversity refuges and for biodiversity recovery;

4.  Recognises the vital role played by forests, their biodiversity and their unique ecosystems in contributing to the health of the environment, climate mitigation measures, the provision of clean air, water and soil stability, and fertility, while providing diverse habitats and micro-habitats to many species, thereby supporting rich biodiversity; highlights the essential role of forests in human health and wellbeing, including urban and peri-urban woodlands which are accessible to those most lacking contact with nature, as well as in providing educational and tourist services; emphasises the need to promote the ‘One Health’ approach, which recognises the intrinsic connection between human health, animal health and healthy nature; stresses that the sound management of Natura 2000 sites is essential for maintaining and enhancing European biodiversity and ecosystems and the services they provide;

5.  Stresses the essential role of forest ecosystems in mitigating and adapting to climate change and contributing to the EU objective of achieving climate neutrality by 2050 at the latest; recognises that climate change is altering the growth capacity of forests in some areas, increasing the frequency and seriousness of drought, floods and fires, and fostering the spread of new pests and diseases which affect forests; notes that intact ecosystems have a greater capacity to overcome environmental stressors, including changes to the climate, than degraded ones as they have inherent properties that enable them to maximise their adaptive capacities; stresses that climate change will have an even greater negative impact on European forests in the coming years, and that this will particularly affect areas with monospecific and contemporaneous forest stands; underlines, in this context, the need to strengthen the resilience of European forests, notably by increasing their structural, functional and compositional diversity; insists that structurally rich, mixed forests displaying a broad ecological amplitude have a higher resilience and increased capacity to adapt in this context; points out that in certain conditions stable mixed forest may naturally contain a limited number of species; underlines that forestland, with its respective carbon pools of living trees and dead wood, is a crucial factor in limiting global warming, contributing to the EU’s climate neutrality targets and enhancing biodiversity; considers that the promotion of biologically diverse forests is the most effective insurance against climate change and biodiversity loss;

6.  Highlights the continuously growing cover and volume(26) of forests in the EU, despite a slowdown in recent years, which is in contrast to the global deforestation trend(27); acknowledges the efforts of all the actors across the forest-based value chain who have contributed to this development; is concerned by the increasing pressure on the EU’s forests and their habitats, which has been exacerbated by the impact of climate change, and stresses the urgent need to protect and increase forest and ecosystem resilience, including through measures to increase the capacity to adapt to climate change, and to reduce pressures where feasible, while taking into account the characteristics of the forest; notes with concern that the vulnerability of forests in the EU to invasive pests and pathogens seems to have increased and that outbreaks are a threat to sequestered carbon(28), biodiversity and wood quality;

7.  Calls on the Member States to ensure that their legislation provides forests with the best possible protection against pollution and damage; points, in particular, to protection against contamination, such as by lead munitions or pesticides, extreme soil compression due to inappropriate use of machinery, and protection against damaging browsing by game or damage caused by too large a cloven-hoofed game population;

8.  Highlights the specific and diverse characteristics of forestry sectors in the Member States and emphasises that the EU’s forests are characterised by diverse natural conditions, such as biogeography, size, structure and biodiversity, as well as ownership patterns, forms of governance, challenges and opportunities, and that most of them have been shaped by centuries of human interaction, intervention and management and are thus a form of cultural heritage; recalls also that primary and old-growth forests are areas that have developed with little to no human intervention and management; stresses that in order to ensure that the strategy can be implemented in all types of forests and situations, adapted approaches in terms of forest management and the delivery of ecosystem services are needed in some cases;

9.  Acknowledges that forest management is site-specific and that varying forest conditions and forest types may require different management approaches based on different ecological needs and forestland characteristics and take into account the rights and interests of forest sector workers, owners and other concerned actors;

10.  Highlights the contribution to date of forest owners and actors across the forest-based value chain to the efforts to achieve a sustainable and climate neutral economy by 2050 and to the value of generational and historical knowledge and expertise in forestry and sustainable forest management;

11.  Recognises the complexity of assessing the state of forests, as well as the uneven availability, diversity and quality of data, and therefore stresses the need for continuous policy and scientific dialogue and increased financing at all levels, starting from consultations with Member States, and in particular with forest managers and owners, to improve data collection on the state of forests and, where appropriate, data harmonisation; stresses the need to also take into account financial means and human resources, in particular to be able to identify resource-efficient forest uses and forest usage limits at an early stage;

12.  Underlines that, although focusing on forests in the EU, the strategy and its implementation must be coherent with the work undertaken at pan-European level by Forest Europe and international organisations such as the FAO, and must take into account the views of expert groups and the work undertaken at Member State level; stresses that the strategy and its implementation should avoid duplicating work and increasing the administrative burden; further believes that, given the EU’s strong commitment to protecting biodiversity and carbon sinks, and promoting the sustainable sourcing, production and use of resources globally, as underlined by the Commission’s proposal for a regulation on deforestation-free products, the strategy should be implemented in such a way as to serve as a model of best practices, recognising the variety of starting situations, while serving to encourage similar approaches in other regions;

13.  Stresses that to deliver on its various objectives, the implementation of the strategy must be fit-for-purpose at the regional and local levels, with consideration for the socioeconomic impact it can generate, including by adapting the implementation to local conditions and experiences and traditional knowledge and uses, taking into account current scientific understanding, and by providing stakeholders with the necessary skills; notes that it must be based on the full recognition of property rights, an economically, environmentally and socially viable forestry sector, and the polluter pays principle, as key elements in the provision of the various forest services and in improving resilience;

14.  Calls on the Commission to provide a comprehensive impact assessment of the strategy to identify the implications for market conditions, rural areas and the various funding needs, including for research and innovation, skills development, infrastructure, climate change mitigation and adaptation, and biodiversity enhancement;

Fostering a balanced multifunctionality

15.  Recognises the key role of forests and the entire forest-based value chain in protecting the climate and biodiversity, and in mitigating climate change to contribute to the achievement, by 2050 at the latest, of a sustainable and climate-neutral economy; underlines that the multifunctional role of forests comprises multiple ecosystem services and socioeconomic functions, such as the conservation and enhancement of biodiversity and soils, climate change mitigation, the sequestration and storage of carbon from the atmosphere, the prevention of land degradation, the provision of renewable and nature based raw materials and medical, edible and culinary products, and non-extractive economic activities, including sustainable eco-tourism, all of which lead to jobs and economic growth in rural and urban areas, counteract rural depopulation, contribute to the provision of clean water and air, protection against natural hazards, and offer recreational, health, aesthetic and cultural benefits; stresses that the implementation of the strategy must ensure the balanced provision of all services and maintain and enhance competitiveness and innovation; underlines that the successful provision of services requires sustainable active management;

16.  Believes that the key principle of balancing multiple forest functions and of defining goals and measures towards the provision of all ecosystem services should be to seek to maximise synergies and minimise trade-offs on the basis of evidence-based information;

17.  Stresses that forests contribute to climate change mitigation via carbon sequestration, carbon storage and the sustainable substitution of wood and wood products for fossil fuels, fossil-based products, materials, energy sources and other products with high environmental and carbon footprints; emphasises that wood is the only significant natural renewable resource that has the potential to replace some very energy-intensive materials, such as cement and plastics, and will be in greater demand in the future; notes that the strategy has a particular focus on storage in the construction sector and believes that its implementation should clearly support a broader use of different options for wood-based substitutes and be based on science-based and robust life-cycle assessments, in line with EU environmental objectives and the goals of the bioeconomy and the industrial strategy, in order to unlock the full potential of forest-based products to strengthen the circular economy and in the fight against climate change and to achieve a post-fossil fuel economy; emphasises the role of research on the substitution of fossil-based materials and fossil fuels; stresses the need to reduce the EU’s consumption in general and welcomes the establishment of a methodology to quantify the climate benefits of wood construction;

18.  Emphasises that the considerable importance of healthy and fertile forest soil should not be overlooked, as it is mandatory for sustaining life, increasing forest productivity(29), storing carbon and protecting the vital underground fungal network that enables trees to share resources, such as nutrients and water, and defence signals, granting increased resistance to pests, diseases, and even drought and extreme weather events(30), (31), (32), which are likely to increase in intensity and frequency as a result of climate change;

19.  Highlights that for wood-based products to contribute optimally to climate change mitigation and a circular economy requires that they are used in the most efficient and sustainable way; believes that timber removals must be restricted by sustainability limits and that the principles in the cascading guidance(33) are a good standard for efficient use, but only if not used as a static approach, and must therefore be adjusted regularly to reflect innovative uses such as in construction, textiles, biochemicals, medical applications and battery materials; stresses that wood-based resources must be used as efficiently as possible, with economic and operational decisions taking into account national specificities, and stresses that a well-functioning, undistorted market can incentivise the efficient and sustainable use of wood-based resources in conjunction with adequate measures to ensure the protection of the environment;

20.  Underlines the importance of a reliable and sustainable supply of wood, wood-based products and forest-based biomass in achieving the EU’s sustainability goals, including the 2050 carbon neutrality objective and the green growth and jobs goal of the Green Deal; notes that demand is expected to continue to grow(34) and that the use of locally and sustainably produced wood should be encouraged in order to meet this demand; believes that a large part of the EU’s forestry sector provides highly sustainably sourced raw materials; calls on the Commission to consider the leakage effects and substitution effects of fossil fuels and non-renewable materials, as well as the effects on the competitiveness of the forestry sector and forest-based industries, and to monitor any effects on the availability of wood following the implementation of measures under the strategy;

21.  Points out that the increasing demand for wood as a raw material, especially wood for use as an energy source, poses major challenges in the context of political crises, such as the war in Ukraine, and requires continuous monitoring of domestic forest resources to assess potential shortages; calls on the Commission and the Member States to assess dependencies on imports of timber from Russia in the light of the legitimate sanctions following the Russian invasion of Ukraine and to develop sustainable strategies to mitigate disruptions where necessary, while avoiding at EU level the conversion of agricultural land suitable for food production; highlights the crucial importance of the EU’s security of supply and own raw material production, in the broader context of the Green Deal objectives; stresses that, in certain circumstances, neglecting forests may lead to the loss of employment in rural areas and increased dependency on imports of forest-based products from parts of the world where forest management is less sustainable;

22.  Recalls that 2,1 million people work in the forest-based sector, while the extended forest-based value chain supports 4 million jobs in the green economy, not accounting for retail activities and non-wood activities such as forest-related leisure activities and scientific work on forests; notes that employment in the forestry sector declined by 33 % between 2000 and 2015, mainly owing to increasing mechanisation at a time when wood extraction was also increasing; highlights the important role that forests play in the creation of green jobs in rural and mountainous areas; notes that non-wood forest products, such as various nature-based foods, medicines and solutions for basic materials, play an important role as a source of income, with an estimated value of around EUR 4 billion in 2015(35), and are deeply rooted in regional traditions; calls on the Commission and the Member States to assess the economic impacts of a closer-to-nature approach, including on direct and indirect employment;

23.  Calls on the Commission and the Member States to monitor and assess the effects of a shift in the balance of forest functions on the overall employment situation and profitability of the local timber sector, especially in rural and mountainous areas, as well as in downstream parts of the wood-processing industries, and highlights the need to maintain or improve the attractiveness of employment in the sector, as well as workplace safety, when considering changes in management practices;

24.  Recognises that there are several co-benefits associated with reforestation and afforestation, such as water filtration, increased water availability, drought mitigation, flood control, avoided sedimentation, the creation of wildlife habitats, an increase in soil fauna, enhanced soil fertility and air filtration; welcomes the reforestation and afforestation roadmap for planting at least 3 billion additional trees in the EU by 2030; emphasises that such initiatives should be carried out in compliance with clear ecological principles and be fully compatible with the biodiversity objective, prioritising the restoration of forest ecosystems; recalls that planting trees is dependent on support from local stakeholders and regional planning; calls on the Commission and the Member States to pay special attention to planting suitable trees in areas with degraded land and those affected by desertification, and reiterates the importance of protecting primary and old-growth forests; points out that increasing the area of afforested land can make an effective contribution to combating climate change and to the natural regeneration of degraded forest systems, with the medium- and long-term effect of economic and social development and the creation of new jobs; calls on the Commission to include in its additionality principles the trees planted under the new common agricultural policy (CAP) eco-schemes and the environmental, climate-related and other management commitments, as well as those under the National Recovery and Resilience Plans, since both the new CAP and the Recovery and Resilience Facility will have been implemented after the adoption of the EU Biodiversity Strategy for 2030; stresses that since land is a finite resource, planting trees in existing forests, on marginal land and in urban areas should be prioritised over converting productive agricultural land, especially in the new geopolitical circumstances, as well as over the conversion of pastures and natural grasslands, since it does not lead to significant changes in soil organic carbon(36); notes the opportunity for urban forest development in this area; recalls, however, that reforestation and afforestation may also involve trade-offs for biodiversity, e.g. on biodiverse grasslands;

Protection, restoration, reforestation and afforestation, and sustainable management

25.  Underlines the multifaceted role of forests and the importance of healthy, ecologically resilient forest ecosystems that provide a multitude of services to society, such as the conservation of biodiversity and the provision of renewable raw materials, helping to create jobs and boost economic growth in rural areas; stresses that policies that enhance the protection and restoration of biodiversity will help tackle climate change; calls for sustainable forest management in the implementation of climate goals, as it is key to reducing deforestation and forest degradation, and insists that biodiversity preservation and habitat protection and conservation should be encompassed within sustainable forest management;

26.  Emphasises the importance of the EU promoting preservation, conservation and restoration of forest ecosystems, taking into account the upcoming EU Nature Restoration Law and improving their resilience, while supporting the development of an economically viable, vibrant forest sector and local communities; calls for a long-term vision for the protection and restoration of Europe’s forests;

27.  Takes note of the Commission’s announcement on developing additional indicators and threshold values for sustainable forest management, which remain voluntary for Member States to implement at national and regional level; believes that these indicators and thresholds should improve the understanding of whether or not a forest is being managed sustainably at forest stand level, or at least at landscape level, and to determine which restoration efforts have been successful; calls on the Commission to develop evidence-based indicators and thresholds to complement the sustainable forest management framework, in particular as regards the development of clear criteria relating to ecosystem health, biodiversity and climate change, aimed at making them an efficient tool for improving the sustainability of EU forests and ensuring that forest management contributes to the EU’s climate and biodiversity objectives; considers these additional indicators and thresholds to be crucial tools for biodiversity protection and restoration and for climate mitigation and adaptation in the forest sector; highlights the fact that a definition of sustainable forest management was agreed as part of the pan-European Forest Europe process and has been incorporated into national legislation and voluntary systems, such as forest certifications, in the Member States; therefore underlines the need to ensure coherence between the Commission’s work and that of Forest Europe and the FAO and to avoid any duplication of efforts or disproportional increase in the administrative burden, as well as to engage with national and regional competent authorities, public and private forest managers and forest owners, and other relevant stakeholders to ensure that indicators and value ranges are fit for application at local and regional level under specific biogeographical conditions; points out that Forest Europe has begun work to revisit the definition of sustainable forest management and its tools; calls on the Member States to continue their efforts to properly implement national strategies and legislation related to sustainable forest management, and to adapt them to their national, regional and local circumstances; calls on the Member States to adequately transpose and implement the EU legislation and binding objectives on forests, and calls on the Commission and the Member States to ensure the implementation and enforcement of the Birds and Habitats Directives, including Natura 2000;

28.  Highlights that pressure on forests from pests, diseases and parasites, natural disasters, an altered water balance, increased average temperatures and other disturbances is being increasingly intensified by climate change, and that strengthening forests’ ecosystem adaptation and resilience through sustainable active management is a matter of urgency; notes the economic impact of these disturbances on the forestry sector as a whole; notes that a greater deployment of sustainable innovative technologies and management practices in restoration, afforestation and reforestation can help to strengthen resilience and enhance biodiversity; calls on the Commission to collect and disseminate knowledge among Member States about how to adapt forests to current and expected climate change, in line with the new EU Adaptation Strategy and Biodiversity Strategy; notes that sustainable forest management, as a dynamic concept, consists of a broad array of actions and adaptive practices, many of which can play a key role in the climate mitigation potential of forests, and offers measures to introduce better adapted European species and improved provenances, strengthen the contribution of forests to the water cycle, carry out felling to contain pests, pathogens and invasive species, prevent forest fires and maintain protective functions, among others, while underpinning the multifunctional roles of forests; highlights that growing larger, resilient and diverse forestland also requires access to genetic resources; stresses the importance of supporting national seedling genepools in order to provide local and regional reforestation and afforestation initiatives with a sufficient number of native tree species; points to the important role of natural regeneration for the future of forests, as it can foster undisturbed root development, better tree vitality and stability, and lower planting costs, while noting that natural regeneration is not always possible owing to specific forest conditions; underlines that the EU’s diverse forests and climate conditions require differentiated sustainable forest management practices, which should be further developed nationally, regionally and locally, working from a strong common basis;

29.  Notes with great concern that large-scale and more intense wildfires are an increasing challenge across the European Union and, in particular, that the 2021 fire season in the EU was unprecedented, as some 0,5 million ha were destroyed by fire, notably in the regions of Europe facing the highest average temperature rises, such as the Mediterranean; underlines that ‘megafires’ are increasing in intensity and frequency globally; recalls that a diverse landscape with diverse forests provides a greater bulwark or natural barrier against large-scale and uncontrollable forest fires; stresses that the restoration of diverse forests would assist with fire prevention and containment; underlines the need for more resources for and the development of science-based fire management and capacity-building support through advisory services to tackle the effects of climate change in forests; calls on the Commission and the Member States to better promote and make use of the integrated fire management concept and notes that this may require better regulatory capacity in the Member States, the strengthening of public services, and dedicated support and increased cooperation for disaster prevention, preparedness and response; highlights the importance of further developing and making full use of the EU Civil Protection Mechanism in relation to forest fires and other natural disasters; calls on the Commission to collect and disseminate knowledge among the Member States on how to adapt forests to current and expected climate change, in line with the new EU adaptation strategy; invites the Commission to create forest fire risk assessments and maps, on the basis of improved Copernicus products, artificial intelligence and other remote-sensing data, to support preventive action;

30.  Underlines that different levels of protection are part of the sustainable forest management toolbox; emphasises that in many cases, even forest protection still requires certain forms of intervention, for instance to address natural hazards or adaptation needs; notes that multi-age, multi-species forests with continuous cover are more resilient to climate impacts such as fire, drought and unseasonal weather events, including as part of sustainable forest management, and as such are an important investment for the future; insists that monocultures, which are less resilient to pests and diseases, as well as to drought, wind, storms and fire, should not be supported by EU funds;

31.  Acknowledges that not all management practices contribute to carbon sequestration in forests, but stresses that practices and practitioners can adapt and modernise in order to best balance trade-offs, optimise their approach to achieving multiple objectives, and create synergies with climate change mitigation and adaptation goals and the multiple other functions of forests; points out, in this connection, that there are trade-offs and synergies to consider between demand for wood and the expectation that forests will act as carbon sinks and provide habitats for flora and fauna; calls on the Commission and its services, in this regard, to work strategically to ensure coherence in any forestry-related work and enhance the sustainable management of forests, with full respect for the subsidiarity principle; highlights that certain management practices, notably including voluntary set-asides, can help to restore forests and have a positive impact on carbon sequestration, biodiversity and ecological status; notes that forests can have very diverse levels of biodiversity and carbon sequestration and storage capacity depending on management, the machinery used, the intensity and frequency of cutting, the state of the soil, parasite and illness intensity, the age of forest stands etc.; points out that some forests are now releasing more carbon than they are absorbing; notes that forests should not be considered exclusively as CO2 sinks and as a solution for the lack of emission reductions from other sectors;

32.  Welcomes the Commission’s and the Member States’ ongoing cooperation on voluntary ‘closer-to-nature’ forestry guidelines by the Working Group on Forests and Nature; believes that to ensure added value, guidelines on this concept should fully respect the subsidiarity principle and should incorporate a broad range of results-oriented, scientifically proven sustainable tools and forest management practices, particularly taking into account local-level and regional-level needs, to give forest owners and managers the tools and relevant financial incentives to improve connections and cooperation so as to better integrate biodiversity protection into improved management practices that at the same time aim to provide other ecosystem services and products, as demonstrated by the Integrate Network; highlights that forests do have very different characteristics within the Union and that there is therefore a strong need for different policy and management approaches, working from a strong common basis;

33.  Highlights the importance of primary and old-growth forests, which contain rich biodiversity and provide a high variety of microhabitats essential for sustaining high biodiversity levels, and their key role for biodiversity protection, carbon sequestration and storage, and fresh water provision; reiterates the call for all remaining old-growth and primary forests to be strictly protected, in line with the EU’s Biodiversity Strategy for 2030; insists that protection must also be provided to the buffer zones adjacent to primary and old-growth forests to support the development of old-growth forest attributes; stresses that expanding appropriate protection to buffer zones will improve the connectivity of habitats of high ecological value, which will significantly contribute to conservation and mitigate the negative impacts of fragmentation; recognises that almost all primary forests have been lost and expresses concern at illegal logging in some Member States in the EU; notes the various definitions of primary and old-growth forests established at international level and stresses that, before any further designation efforts are made, a set of definitions of what constitutes primary and old-growth forests that builds upon the existing ones must be commonly agreed between Member States, forest owners and managers, and other stakeholders; regrets that the guidelines on the definition of old-growth and primary forests were not adopted by the Commission in 2021 as indicated in the EU’s Biodiversity Strategy for 2030, but welcomes the ongoing work on these definitions by the Working Group on Forests and Nature; underlines the need to consider a diverse and comprehensive set of attributes, ensure flexibility to account for specific conditions in biogeographical regions and forest types, and duly distinguish between old-growth forests and older forest stands managed for long rotation; stresses that such definitions must be agreed as a matter of urgency, must be based on ecological principles and must take account of the diversity of European forests, owners, management traditions, nature types and shifting climatic zones, as well as avoiding disproportionate management requirements for adjacent forests and woodland and allowing for management measures related to issues such as disaster prevention; points to the role of financial incentives in the voluntary development of certain old-age forest on set-aside land in the future; highlights that the distribution of primary and old-growth forests in the EU is uneven, 90 % of them being located in just four Member States(37);

34.  Welcomes the fact that the Commission guidance on new protected areas acknowledges the need for certain ongoing activities, for example ungulate management through hunting to protect a wide range of forest habitat types;

35.  Recalls the significant deficit in the mapping of primary and old-growth forests and highlights the urgent need to complete the framework to ensure comprehensive and harmonised mapping, based on clear operational criteria and definitions; calls on the Commission to acknowledge the work done so far to identify, map and assess these forests in some Member States and to encourage the exchange of best practices and knowledge sharing; reiterates its call for the Commission and the Member States to harmonise existing data, to fill in the gaps regarding the location of primary and old-growth forests and to create a database of all potential sites fulfilling the criteria for old-growth and primary forests; in this context, calls on the Commission and the Member States to create a transparent and easy-to-access database of all potential sites fulfilling the criteria to be classified as old-growth and primary forests;

36.  Takes note of the work of the Commission on developing guidelines on biodiversity-friendly afforestation and reforestation; stresses that a particular focus should be placed on those Member States whose forest cover is low and, where appropriate and not detrimental to biodiversity goals, on marginal and other land that is not suitable for food production, close to urban and peri-urban areas, and in mountainous areas, and on supporting the development of forests that are resilient, mixed and healthy; stresses that definitions and guidelines on biodiversity-friendly afforestation must be science-based, take account of the diversity of European forests, types of ownership, management traditions and nature types, as well as shifting climatic zones, and be set in close cooperation with Member States and relevant stakeholders; insists, furthermore, that no undrained wetlands or peatlands should be drained for afforestation and, in the case of historically drained land, no further or additional drainage should be allowed; points out, in addition, that particular care needs to be taken to avoid erosion in forests situated in mountainous areas;

Enabling forests and forest managers to deliver on multiple goals

37.  Notes that the CAP and the European agricultural fund for rural development (EAFRD) are the main sources of support for forestry measures, accounting for 90 % of EU’s total finance for forestry; outlines that the Commission’s 2017 evaluation of forestry measures concluded that rural development support for forests generally had a positive effect and could contribute significantly to delivering economic, environmental and social benefits(38); notes that between 2014 and 2020, the Member States only spent 49 % of the available funds, that the Commission has identified administrative burden, insufficient attractiveness of the premiums and a lack of advisory services as reasons for this low usage and that this should be taken into account when adapting the new CAP strategic plans; calls on the Member States to eliminate the administrative burden in order to make the use of the EAFRD for forestry measures more efficient; welcomes the Commission’s goal of increasing the uptake of available funds and underlines the need to ensure that funding and subsidies do not support operations that undermine the balanced provision of the various ecosystem services; highlights the need to include measures which are concrete and sufficiently attractive to ensure take-up of interventions and measures to enhance sustainable forest management and the multifunctional role of forests in the EU in the CAP strategic plans, to ensure that support is provided for initiatives related to forest ecosystems in particular so as to reduce biodiversity loss in forests, to promote the planting of appropriate native species of trees where suited to the specific environment, to improve forest management and to ensure that funds are used in line with relevant policy goals; regrets the fact that the Commission does not track forestry expenditure under other rural development measures; underlines that support for voluntary nature conservation measures is in line with ownership rights and the subsidiarity principle;

38.  Calls on the Commission to find new ways to make the combination of different funds more attractive and easily implementable, reflecting and leveraging on the multifunctional character of forests and forest ecosystem services, and to better promote other EU financing sources such as the LIFE programme, Horizon Europe, the European Regional Development Fund, the Cohesion Fund and the European Investment Bank’s Natural Capital Financing Facility; calls on the Commission to assess the consistency of different funding instruments under the Union budget and the EU Recovery Instrument, including the national CAP Strategic Plans, with the commitments and targets set out in the EU Forest Strategy and the EU Biodiversity Strategy; calls on the Commission to also consider eligible under the aid for forest-environmental and climate services and forest conservation the commitments relating to the protection and strict protection of forests stemming from the EU Biodiversity Strategy for 2030 and the New EU Forest Strategy for 2030; calls on the Commission to prolong these commitments for periods longer than seven years, especially in the case of strictly protected forest areas;

39.  Points out that the forestry sector operates primarily, and more so than the agricultural sector, as a market-based sector without a distinct dependency on subsidies, while also noting that CAP funding must mainly remain targeted to food production and ensuring food security in the Union; stresses that putting a stronger emphasis on other ecosystem services should not lead to a disproportionate dependency, and supports the Commission and Member States in further pursuing the development of voluntary market-based payment for ecosystem services schemes, such as for carbon sequestration, the promotion of biodiversity, soil protection, water management, data collection and monitoring; underlines the importance of applying the principle of additionality and of designing programmes in a way that fully recognises the work of front-runners and other participants, while motivating a broad range of forest owners; further underlines that the specific requirements of programmes need to take into account the wide variety of forests and their diverse challenges and opportunities; notes that the availability of reliable data on ecosystem services is essential for any payment scheme; welcomes the Commission communication on carbon farming(39), which aims to incentivise new business models from public and private sources by rewarding management practices focusing on increasing sequestration in living biomass and soils in line with ecological principles; emphasises the need for initiatives on carbon farming based on a robust scientific methodology, including the possibility for non-intervention approaches in line with the Biodiversity Strategy; highlights, in the light of this initiative, that active sustainable forest management can contribute to both increasing carbon stocks and forest growth; stresses that carbon removal through forestry should focus on incentives for forest owners and managers to invest in active sustainable forest management and protection where needed, promoting regeneration and increased growth; welcomes the Commission’s plan to propose a binding EU regulatory framework for the certification of carbon removal by the end of 2022 in order to correctly quantify, report and certify carbon removal efforts and avoid the risk of misrepresentation and greenwashing;

40.  Acknowledges the important role of existing market-driven certification schemes and their contribution to the further uptake of sustainable forest management; notes that most of these schemes have proven to be credible and effective tools in driving sustainable forest management practices across Europe; welcomes the continuing scrutiny by the EU institutions as an aid to continuous improvement; welcomes the Commission’s announcement on developing a voluntary, ‘closer-to-nature’ certification scheme; calls on the Commission to ensure that these initiatives improve forest ecosystems, protect biodiversity and ensure added value through nature-friendly forest management practices; encourages the Commission to cooperate with and learn from existing and proven certification schemes, and to support efforts to improve the existing schemes, including with regard to transparency for consumers and taking into account consumer demand; believes that to create added value, the voluntary ‘closer-to-nature’ certification must be based on a clear mandatory framework and must offer forest owners a sufficient price premium for the provision of ecosystem services, e.g. by establishing an EU quality label with locally adapted guidelines on closer-to-nature forestry in order to promote the most biodiversity-friendly management practices; calls on the Commission, after concluding the work on the ‘closer-to-nature’ definition, to assess both the added value and the costs for forest owners of such a certification scheme; notes that voluntary certification is only one of the steps needed towards the development of more sustainable forest management in the EU;

41.  Welcomes the Commission decision of 4 June 2021 on the licensing of the Natura 2000 logo(40); notes that the Natura 2000 labelling scheme should promote the strictest EU ecological standards for the protection of the most vulnerable habitat types and species on land; recalls that Natura 2000 covers around 18 % of the EU’s land area; highlights that the Member States should ensure that no activities occur that cause damage to or disturb species in Natura 2000-designated habitats; calls for ambitious targets under the EU Forest Strategy to maintain and restore the ecological value of the designated sites, taking into account the social and cultural requirements and the regional and local characteristics of the area; notes that conservation efforts in Natura 2000 sites should be fully in line with the Habitats and Birds Directives and the EU’s Biodiversity Strategy for 2030; notes that Natura 2000 sites provide valuable ecosystem services to the public; highlights that the Natura 2000 logo placed on any goods or services should mean that those goods and services are contributing to the conservation objectives of the Natura 2000 site from which they are derived;

42.  Welcomes the Strategic EU Ecolabel Work Plan 2020-2024 published by the Commission; recalls that the EU ecolabel is a voluntary label of environmental excellence; notes that the ecolabel scheme promotes the EU circular economy and contributes to sustainable consumption and production practices; calls for strict standards and monitoring, as well as the promotion of the increased use of the ecolabel in the EU forest sector; stresses the importance of extending the scope of the ecolabel for wood products to include the sustainability level of these products; calls on the Member States to encourage producers to increase the use of the Natura 2000 label for non-wood forest products;

43.  Highlights that to fulfil biodiversity objectives and unlock the full potential of forests to contribute to the climate and circular economy targets of the EU, further research, innovation and development are required and should be incentivised in the fields of sustainable forest management, in particular adaptation to climate change, and bio-based alternatives to fossil-based products and other products with a large carbon footprint; encourages continued support for sustainable innovation related to wood, such as wood-based textiles that have a high potential as a substitute for synthetic textile fibres and cotton, and other wood-based materials that have received a positive environmental and climate life-cycle assessment; stresses that in order to be competitive, such bio-based alternatives must offer consumers products at affordable prices; notes that development cycles in the sector may last 10 years or longer and underlines that a predictable and stable regulatory environment is a precondition for attracting investments; highlights that many innovations in the sector have high added value and provide high-quality employment in rural areas, as well as in the forest sector value chain and related bio-based industries, and underlines the role of small and medium-sized enterprises in this context;

44.  Believes that to improve the coordinated provision of environmental, social, societal and economic forest services, relevant EU framework programmes, including Horizon Europe, the LIFE programme, the agricultural European Innovation Partnership (EIP-AGRI), the LEADER programme and the European Institute of Innovation and Technology, must be better aligned; welcomes the Commission proposal to enhance EU cooperation by proposing a research and innovation partnership on forestry and calls on the Commission to develop comprehensive forest-focused programmes involving different functions and parts of the forest-sector value chain and including living labs to test and demonstrate solutions to key challenges, building on existing and proven platforms such as the Integrate Network, the Forest-based Sector Technology Platform and the European Forest Institute, and including pan-European and international partners;

45.  Recalls that 60 % of EU forests are privately owned and a significant share of forest owners are small-holders; stresses that in order to achieve the strategy’s goals, its implementation must focus on enabling all types of forest owners and managers, and in particular small-holders, to deliver on the multiple functions of forests; acknowledges that forest owners and managers need a large amount of flexibility in their forest management practices, working from a strong common basis, so that they can provide all the required ecosystem services, and calls on the Commission and the Member States to ensure that support programmes, voluntary payment-for-ecosystem-services schemes and research funding are attractive, understandable and easily accessible to small-holders;

46.  Underlines that the availability of advisory services is an important driver of the dissemination of sustainable forest management practices; encourages Member States to ensure the availability of advisory services, paying particular attention to small-holders;

47.  Notes that about 40 % of the EU’s forests are publicly owned by municipalities and regional or national governments, while in some Member States public ownership of forests is much higher, reaching an average of 90 % in South East Europe; emphasises that public forests can play a key role in preserving forest ecosystems, ensuring biodiversity protection, mitigating climate change, enhancing rural development and supplying timber and non-wood goods and services, and that state forestry agencies can play an important role in providing private forest owners with much-needed expertise regarding close-to-nature forestry and adaptation to the effects of climate change; calls for increased human and financial resources for state forestry agencies where necessary; calls, in this context, on the Member States to set an example for sustainable forest management in their publicly owned forests for the public good, in particular with regard to environmental, economic and social aspects;

48.  Welcomes the Commission communication entitled ‘A long-term Vision for the EU’s Rural Areas – Towards stronger, connected, resilient and prosperous rural areas by 2040’ and the acknowledgement of the role of forests and of sustainable forest management in safeguarding decent work and livelihoods in rural areas; underlines the importance of the forestry sector and the wood-based industries as a provider of jobs in rural communities, as well as in urban areas through downstream uses; points out the importance of boosting non-wood, forest-based economic activities in order to diversify local economies and jobs and reverse the depopulation trends of rural and remote areas; notes with great concern the steady decline in employment in the forestry and logging sector, which according to Eurostat fell by 7 % between 2000 and 2019(41), and the high number of accidents in the sector(42); calls on the Commission and the Member States to monitor the effects of the measures taken under the strategy on employment and work safety in the light of changing management practices, considering that the options discussed often go hand in hand with higher (physical) labour intensity, which also brings different risks for workers and requires high-quality vocational training, as well as upskilling and reskilling opportunities; highlights the importance of making this type of employment attractive, as well as the opportunities of more sustainable forest management to this end; stresses the need, in this regard, for measures to increase work safety and adequately train workers and to support the modernisation of forestry equipment and tools; calls on the Member States to assess their advisory services in this respect and re-enforce them where necessary, and to prioritise continuing high-quality vocational training in eco-construction and timber-related trades; reiterates its call for the Commission to take initiatives, in concert with manufacturers of forestry machinery, to improve the environmental design of forestry machinery in order to reconcile a high level of protection for workers with a minimum impact on the soil and water in forests;

49.  Stresses the importance of attracting young people and female entrepreneurs to the sector, especially in the context of the digital and green transitions of forest-based activities; points out, however, that poor working conditions in the forestry sector in some parts of Europe do not currently make it an attractive career choice; underlines the need for investments in the sector and throughout the value chain, and for a favourable environment in rural areas, including digital, transport and community infrastructure; welcomes the Commission’s proposals to promote the establishment of a skills partnership under the Pact for Skills and make use of the European Social Fund Plus to work together to increase the number of upskilling and reskilling opportunities in forestry, create quality jobs and provide workers with opportunities and adequate working conditions in the wood-based bioeconomy, thereby making it a more attractive career choice;

Monitoring, reporting and data collection

50.  Stresses the importance of accurate, integrated, qualitative, timely, comparable and up-to-date data on Europe’s forests and takes note of the initiative for a legislative proposal for a framework on forest observation, reporting and data collection, with full respect for the subsidiarity principle; recalls the importance of verified data, particularly that collected at local level, as many forest characteristics can only be verified on the ground; underlines that the broad availability, high quality, transparency, completeness and harmonisation of data and reporting are essential for meeting the goals of the strategy and believes that to deliver real added value, the framework must build on existing mechanisms and processes, such as the national forest inventories, the Forest Information System for Europe, the ENFIN network, Forest Europe and the FAO, through a bottom-up approach to best use the expertise and experience present in the Member States, and must be developed according to internationally agreed commitments and related Member State competences, while avoiding the duplication of work, an excessive administrative burden and excessive costs; underlines that the framework should include mechanisms to avoid errors such as double counting; calls on the Commission and the Member States to ensure adequate funding and human resources for operational support for the framework;

51.  Believes that in order to ensure the availability of reliable, transparent and high-quality data, new innovative approaches such as remote sensing technologies must be proof checked and combined with data acquired by ground-based monitoring and must be interpreted in close cooperation with scientists, as well as independent and local experts, including competent authorities and forest managers; believes that these approaches can also play a role in helping to balance the multifunctionality of forests and to develop and share new approaches and practices, and should encompass the financial means required to gain access to data and contribute to its acquisition; believes that the synergy and complementarity between satellite imagery and positioning and location data can become key enablers for forestry managers and governmental bodies; stresses the importance of Copernicus in allowing for the remote monitoring and health assessment of forest inventories, as well as the detection of issues such as illegal logging and deforestation; welcomes the fact that, as part of the Forest Information System for Europe, the existing monitoring of climate effects and other natural or human-induced disturbances of forests will be strengthened; underlines the crucial role that analysis data plays in supporting sustainable forest management and the protection of forests, including in preventing illegal logging and in anticipating and mitigating the impacts of natural disturbances such as storms, wildfires and pests;

52.  Considers that Copernicus data should be used as evidence in law enforcement and policymaking through the certification of the data and its derived information products, and calls for the certification of Copernicus data to be achieved in the context of the upcoming legislative proposal for a framework on forest observation, reporting and data collection; stresses that such certified data could play a key role in monitoring diverse phenomena (such as forest land coverage, illegal logging, forest health, tree characterisation, growth patterns and the impact of forest fires) as well as in compliance monitoring;

53.  Takes note of the idea to introduce strategic plans for forests under the framework on forest observation, reporting and data collection; further notes that several Member States already have national strategies for forests in place, which cannot be assessed in a uniform manner by the Commission, and that these should be established or further developed in a way that supports the objectives of the EU Forest Strategy; underlines that this proposal should avoid an excessive increase in the administrative burden and costs; highlights that the exact purpose and need for such plans should be clarified and emphasises the obligation to respect Member State competence in forest matters; calls on the Commission to ensure that the legislative proposal fully respects existing national strategies at Member State level and, where relevant, at local level, emphasising that strategic planning at EU level should dovetail with and avoid contradicting or duplicating the existing national strategies; calls on the Commission to assess how this tool could be used to support, in particular, those Member States that do not yet have national strategies in place;

Governance and implementation

54.  Believes that due to the multifunctional contribution of forests to various EU goals and the different administrative levels and stakeholder groups involved, the cornerstones of the strategy’s implementation must be close cooperation and the exchange of best practices with national and regional experts, stakeholders, notably private and public forest owners and managers, scientists, certification schemes and civil society, including an adequate representation of the indigenous peoples of Europe and respecting the principle of subsidiarity; underlines that governance must take into account EU and Member State engagement with Forest Europe and at international level, including with the FAO, and that the implementation of the strategy should seek to create synergies with the contribution to international commitments and cooperation, including on the continuous development of terminology and definitions; recalls the importance of cross-border cooperation in ensuring the long-term survival of Europe’s most valuable and threatened species and habitats; urges environmental and forestry stakeholders to reach out to broader segments of the population through various educational tools and programmes;

55.  Highlights the importance of the Standing Forestry Committee as a forum for providing comprehensive forestry expertise and discussing activities under the strategy and other EU policies that impact the forestry sector; believes that to achieve policy coherence, the Commission should increase dialogue between the Standing Forestry Committee and other expert groups such as the Working Group on Forests and Nature, the Civil Dialogue Group on Forestry and Cork, which plays an important role in properly involving stakeholders in the development and implementation of EU forest policies, the Coordination Group on Biodiversity and Nature’s sub-working group on forest and nature, and the Expert Group on Forest-based Industries;

56.  Acknowledges that the implementation of the strategy may lead to significant systemic changes for the forestry sector, through a shift from primarily timber-based revenue streams towards more complex ones, increasingly building on the provisions of other ecosystem services, and highlights the need to monitor and understand its consequences; notes that the extensive and sometimes contradictory overlap among policies and legislation, and in some cases conflicting objectives, impacts forests and the forestry sector and could cause legislative fragmentation; stresses the importance of ensuring their coherence; calls on the Commission and the Member States to continuously assess the cumulative effects of the different initiatives under the strategy, combined with other relevant EU legislation and policies to ensure coherence in any forestry-related work and enhance the sustainable management of forests, with full respect for the subsidiarity principle; highlights that, as part of these assessments, the impact of the protection regime for primary and old-growth forests on local communities must be thoroughly evaluated in cooperation with local actors, with 90 % of them being located in just four Member States(43); calls on the Commission to report on this as part of its implementation report;

57.  Expresses serious concern about reports of illegal logging and land use change in some Member States, including in state forests and protected areas, and about the related ongoing infringement procedures(44); underlines that illegal logging may have effects that are difficult or impossible to reverse, can contribute to biodiversity loss, the acceleration of climate change and the loss of natural resources from forests that forest communities rely on, and can lead to human rights violations; voices deep sorrow with regard to and firmly condemns the murders of and violence against forestry personnel, journalists and activists as a consequence of illegal logging and expects Member States to hold the perpetrators accountable and end the oppression of rangers; calls on the Commission and the Member States to fully and effectively implement relevant national and EU legislation, in particular by defining illegal logging, increasing close monitoring, spending on enforcement where necessary, fighting corruption, and improving forest and land governance; stresses the importance of increasing the role of the Member States’ competent authorities in combating illegal logging, drawing on the lessons learnt from the implementation and enforcement of the EU Timber Regulation; notes that logging in violation of nature protection measures, including Natura 2000 management plans and the Birds and Habitats Directives, can also constitute illegal logging; stresses that illegal logging has major negative economic, social and environmental impacts and generates revenue losses for local communities; notes the connection between illegal logging and poor living conditions; deplores the length of time taken by the Commission in pursuing infringement cases, which carries the considerable risk that illegal logging will continue and that it will be too late to reverse and repair the huge damage it causes; calls on the Commission and the Member States to take urgent action to stop illegal logging and to tighten the control of illegal timber trading, through the close monitoring and enforcement of existing regulations and the use of geo-spatial and remote-sensing technologies;

58.  Calls on the Commission to promote EU standards and ambitions for protecting forests at an international level;

59.  Calls on the Commission to restart the negotiations for an international legally binding forest convention that would contribute to the management, conservation and sustainable development of forests and provide for their multiple and complementary functions and uses, including action towards reforestation, afforestation and forest conservation, while taking into account the social, economic, ecological, cultural and spiritual needs of present and future generations, recognising the vital role of all types of forests in maintaining ecological processes and balance, and supporting the identity, culture and rights of indigenous people, their communities and other communities and forest dwellers;

60.  Calls on the Union to comply with the principle of policy coherence for development and to ensure consistency between its development, trade, agriculture, energy and climate policies; recognises the positive economic, societal and environmental contribution of the forest industry and asks for further investment in research, innovation and technological advancement;

61.  Calls on the Commission to promote mirror clauses in international bio-economy markets and to make use of pan-European and international partnerships and foreign trade agreements to promote the EU’s climate ambition and the sustainability of forest use outside the EU;

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62.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ C 395, 29.9.2021, p. 37.
(2) OJ C 346, 21.9.2016, p. 17.
(3) OJ L 243, 9.7.2021, p. 1.
(4) OJ L 156, 19.6.2018, p. 1.
(5) OJ L 328, 21.12.2018, p. 82.
(6) OJ L 206, 22.7.1992, p. 7.
(7) OJ L 60, 22.2.2021, p. 21.
(8) OJ L 189, 10.5.2022, p. 1.
(9) OJ C 152, 6.4.2022, p. 169.
(10) Judgment of the Court of Justice of 17 April 2018, European Commission v Republic of Poland, C-441/17, ECLI:EU:C:2018:255 (Failure of a Member State to fulfil obligations – Environment – Directive 92/43/EEC – Conservation of natural habitats and of wild fauna and flora – Article 6(1) and (3) – Article 12(1) – Directive2009/147/EC – Conservation of wild birds – Articles 4 and 5 – ‘Puszcza Białowieska’ Natura 2000 site – Amendment of the forest management plan – Increase in the volume of harvestable timber – Plan or project not directly necessary to the management of the site that is likely to have a significant effect on it – Appropriate assessment of the implications for the site – Adverse effect on the integrity of the site – Actual implementation of the conservation measures – Effects on the breeding sites and resting places of the protected species).
(11) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality.
(12) European Environment Agency Report No 5/2016 entitled ‘European forest ecosystems – State and trends’.
(13) Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework (OJ L 156, 19.6.2018, p. 1).
(14) Commission communication of 16 July 2021 on the new EU Forest Strategy for 2030 (COM(2021)0572).
(15) In Europe as a whole, the majority of private holdings are 10 ha or less – Forest Europe, State of Europe’s Forests 2020, 2020; in Germany, 50 % of privately owned forest holdings are smaller than 20 ha, https://www.bmel.de/SharedDocs/Downloads/DE/Broschueren/bundeswaldinventur3.pdf;jsessionid=972A5297B9463D98948E787D1AA78F19.live921?__blob=publicationFile&v=3; in France, about two thirds of private owners have less than 1 ha, https://franceboisforet.fr/wp-content/uploads/2021/04/Brochure_chiffresClesForetPrivee_2021_PageApage_BD.pdf; in Finland, about 45 % of owners have less than 10 ha, https://www.luke.fi/en/statistics/ownership-of-forest-land; in Latvia, 50 % of owners have less than 5 ha, https://www.zm.gov.lv/public/ck/files/MAF_parskats_Silava_privat_meza_apsaimn_monitorings.pdf
(16) Science for Environment Policy, European Forests for biodiversity, climate change mitigation and adaptation, Future Brief 25, Science Communication Unit, UWE Bristol, 2021, https://ec.europa.eu/environment/integration/research/newsalert/
(17) European Environment Agency, The European environment — state and outlook 2020: knowledge for transition to a sustainable Europe, 11 May 2020, p. 83, https://www.eea.europa.eu/soer-2020/
(18) Commission communication of 16 July 2021 on the new EU Forest Strategy for 2030 (COM(2021)0572).
(19) Joint Research Centre, Mapping and Assessment of Ecosystems and their Services: An EU ecosystem assessment, 2020; for trends in condition, see also Forest Europe, State of Europe’s Forests 2020, 2020.
(20) Forest Europe report of 2020 entitled ‘State of Europe’s Forests 2020’.
(21) Joint Research Centre, Mapping and Assessment of Ecosystems and their Services: An EU ecosystem assessment, 2020; for trends in condition, see also Forest Europe, State of Europe’s Forests 2020, 2020.
(22) Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (OJ L 295, 12.11.2010, p. 23).
(23) European Commission, Directorate-General for Environment, Study on certification and verification schemes in the forest sector and for wood-based products, Publications Office of the European Union, 2021, https://op.europa.eu/en/publication-detail/-/publication/afa5e0df-fb19-11eb-b520-01aa75ed71a1/language-en
(24) Joint Research Centre, Mapping and assessment of primary and old-growth forests in Europe, 2021.
(25) https://www.wur.nl/en/research-results/research-institutes/environmental-research/show-wenr/does-the-eu-depend-on-russia-for-its-wood.htm
(26) https://www.eca.europa.eu/Lists/ECADocuments/SR21_21/SR_Forestry_EN.pdf
(27) Forest Europe, State of Europe’s Forests 2020, 2020.
(28) Science for Environment Policy, European Forests for biodiversity, climate change mitigation and adaptation, Future Brief 25, Science Communication Unit, UWE Bristol, 2021, https://ec.europa.eu/environment/integration/research/newsalert/
(29) Commission communication of 17 November 2021 entitled ‘EU Soil Strategy for 2030 – Reaping the benefits of healthy soils for people, food, nature and climate’ (COM(2021)0699).
(30) Pickles, B. J. and Simard, S. W., ‘Mycorrhizal Networks and Forest Resilience to Drought’, Mycorrhizal Mediation of Soil – Fertility, Structure, and Carbon Storage, Elsevier, Amsterdam, 2017, pp. 319-339.
(31) Gorzelak, M. A. et al., ‘Inter-plant communication through mycorrhizal networks mediates complex adaptive behaviour in plant communities’, AoB Plants, 2015.
(32) Usman, M. et al., ‘Mycorrhizal Symbiosis for Better Adaptation of Trees to Abiotic Stress Caused by Climate Change in Temperate and Boreal Forests’, Frontiers in Forests and Global Change, 2021.
(33) European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, Guidance on cascading use of biomass with selected good practice examples on woody biomass, Publications Office, 2019.
(34) Hetemäki, L., Palahí, M. and Nasi, R., Seeing the wood in the forests. Knowledge to Action 1, European Forest Institute, 2020; see also WWF Living Forests Report, Chapter 5, https://wwf.panda.org/discover/our_focus/forests_practice/forest_publications_news_and_reports/living_forests_report/
(35) In the Forest Europe area; see Forest Europe, State of Europe’s Forests 2020, 2020.
(36) Commission staff working document of 16 July 2021 entitled ‘The 3 Billion Tree Planting Pledge for 2030’ (SWD(2021)0651).
(37) Joint Research Centre, Mapping and assessment of primary and old-growth forests in Europe, 2021.
(38) https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Forests,_forestry_and_logging#Employment_and_apparent_labour_productivity_in_forestry_and_logging
(39) Commission communication of 15 December 2021 on sustainable carbon cycles (COM(2021)0800).
(40) OJ C 229, 15.6.2021, p. 6.
(41) https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Forests,_forestry_and_logging#Employment_and_apparent_labour_productivity_in_forestry_and_logging
(42) Forest Europe, State of Europe’s Forests 2020, 2020.
(43) Joint Research Centre, Mapping and assessment of primary and old-growth forests in Europe, 2021.
(44) Five ongoing infringement procedures against four Member States (cases 2016/2072, 2018/2208, 2018/4076, 2020/2033 and 2021/4029).


Deforestation Regulation ***I
PDF 423kWORD 177k
Amendments adopted by the European Parliament on 13 September 2022 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))(1)
P9_TA(2022)0311A9-0219/2022

(Ordinary legislative procedure: first reading)

Text proposed by the Commission   Amendment
Amendment 1
Proposal for a regulation
Recital 1
(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)0352.
18 Commission Communication of 27 July 2019 ’Stepping up EU Action to Protect and Restore the World’s Forests’, COM(2019)0352.
Amendment 2
Proposal for a regulation
Recital 2
(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
(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
(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
(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
(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)
(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
(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
(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 removal22.
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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.
Amendment 10
Proposal for a regulation
Recital 9
(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)0352.
23 COM(2019)0352.
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)0640.
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)0640.
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)0380.
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)0380.
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)0381.
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)0381.
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)0659.
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)0659.
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)0400.
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)0400.
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)0345.
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)0345.
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)0273.
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)0273.
Amendment 11
Proposal for a regulation
Recital 10
(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
(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
(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)
(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 12 b (new)
(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)
(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)
(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
(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
(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
(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
(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)
(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
(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.
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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)0066, 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)0066, 18 February 2021.
Amendment 24
Proposal for a regulation
Recital 19 a (new)
(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)
(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)
(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)
(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)
(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
(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.
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39 COM(2019)0352.
39 COM(2019)0352.
Amendment 30
Proposal for a regulation
Recital 20 a (new)
(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)
(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
(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)
(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
(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
(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.
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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
(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
(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
(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
(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)
(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
(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)
(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
(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
(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
(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
(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)
(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)
(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
(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
(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
(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
(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.
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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.
Amendment 53
Proposal for a regulation
Recital 38 a (new)
(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
(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)
(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)
(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
(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
(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)
(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)
(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
(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
(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
(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)
(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
(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
(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
(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)
(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
(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)
(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
(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)
(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
(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)
(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
(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
(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
(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)
(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
(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)
(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
(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
(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
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
(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
(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)
(ba)  contributing to a reduction in global deforestation.
Amendment 87
Proposal for a regulation
Article 1 – paragraph 1 a (new)
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
(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)
(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)
(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)
(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)
(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
(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
(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
(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 240
Proposal for a regulation
Article 2 – paragraph 1 – point 9
(9)  ‘produced’ means grown, harvested, raised, fed from or obtained on relevant plot of land;
(9)  ‘produced’ means grown, harvested, or obtained on relevant plot of land, or, in the case of livestock, 'produced' means all relevant plots of land involved in the livestock rearing process;
Amendment 96
Proposal for a regulation
Article 2 – paragraph 1 – point 16
(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)
(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
(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
(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
(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)
(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)
(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)
(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;
Amendment 104
Proposal for a regulation
Article 3 – paragraph 1 – point b
(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)
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
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
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
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
(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
(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)
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
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
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)
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)
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
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
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
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)
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
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
(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
(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
(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
(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)
(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)
(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)
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.
Amendments 128 and 253
Proposal for a regulation
Article 9 – paragraph 3
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)
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 130
Proposal for a regulation
Article 10 – paragraph 1
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.
Amendment 131
Proposal for a regulation
Article 10 – paragraph 2 – point b a (new)
(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)
(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
(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
(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
(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
(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)
(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)
(ia)  information provided via the rapid alert mechanism;
Amendment 245
Proposal for a regulation
Article 10 – paragraph 3
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 outlined in Article 3, point (b), and as defined in Article 2, point (28)(a), of this Regulation.
Amendment 140
Proposal for a regulation
Article 10 – paragraph 4
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)
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
(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
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
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
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)
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
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)
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)
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
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
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)
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)
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
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
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
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)
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)
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
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
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
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
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
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
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)
13a.  Without prejudice to the obligations on competent authorities, the Commission may, upon request, provide Member States with technical support to assist them in carrying out the requirements set out in this Regulation.
Amendment 166
Proposal for a regulation
Article 14 – paragraph 13 b (new)
13b.  Where the Commission receives information that a Member State does not carry out controls that are sufficient to ensure that relevant commodities and products made available on, or exported from, the Union market comply with the requirements set out in this Regulation, it shall, in dialogue with the Member State concerned, be mandated to introduce changes to the plan referred to in paragraph 3 established by that Member State to ensure that the situation is rectified.
Amendment 167
Proposal for a regulation
Article 14 – paragraph 13 c (new)
13c.  Records of checks carried out under this Regulation and reports of their results and outcomes shall constitute environmental information for the purposes of Directive 2003/4/EC1a and shall be made available upon request.
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1a Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on public access to environmental information and repealing Council Directive 90/313/EEC (OJ L 41, 14.2.2003, p. 26).
Amendment 168
Proposal for a regulation
Article 15 – title
Checks on operators
Checks on operators and non-SME traders
Amendment 169
Proposal for a regulation
Article 15 – paragraph 1 – point d a (new)
(da)  examination of interim measures taken under Article 21 and corrective measures taken under Article 22;
Amendment 170
Proposal for a regulation
Article 15 – paragraph 1 – point f
(f)  any technical and scientific means adequate to determine the exact place where the relevant commodity or product was produced, including isotope testing;
(f)  any technical and scientific means adequate to determine the exact place where the relevant commodity or product was produced, including anatomical, chemical and DNA analysis;
Amendment 171
Proposal for a regulation
Article 15 – paragraph 1 – point f a (new)
(fa)  any technical and scientific means adequate to determine the biological species affected by this Regulation which is contained in the relevant commodity or product, including anatomical, chemical and DNA analysis;
Amendment 172
Proposal for a regulation
Article 15 – paragraph 1 – point g
(g)  any technical and scientific means adequate to determine whether the relevant commodity or product are deforestation-free, including Earth observation data such as from Copernicus programme and tools, and
(g)  any technical and scientific means adequate to determine whether the relevant commodity or product are deforestation-free, including Earth observation data such as from Copernicus programme and tools or from other publicly or privately available sources; and
Amendment 173
Proposal for a regulation
Article 16 – title
Checks on traders
Checks on SME traders
Amendment 174
Proposal for a regulation
Article 17 – paragraph 2
2.  The costs referred to in paragraph 1 may include the costs of carrying out testing, the costs of storage and the costs of activities relating to products that are found to be non-compliant and are subject to corrective action prior to their release for free circulation, their placing on or exporting from the Union market.
2.  The costs referred to in paragraph 1 may include, inter alia, the costs of carrying out testing, the costs of storage and the costs of activities relating to products that are found to be non-compliant and are subject to corrective action.
Amendment 175
Proposal for a regulation
Article 18 – paragraph 1
1.  Competent authorities shall cooperate with each other, with authorities from other Member States, with the Commission, and if necessary, with administrative authorities of third countries in order to ensure compliance with this Regulation.
1.  Competent authorities shall cooperate with each other, with authorities from other Member States, with the Commission, and if necessary, with administrative authorities of third countries in order to ensure compliance with this Regulation, including as regards the implementation of field audits.
Amendment 176
Proposal for a regulation
Article 18 – paragraph 3
3.  Competent authorities shall exchange information necessary for the enforcement of this Regulation. This shall include giving access to and exchange of data on operators and traders including due diligence statements with other Member States’ competent authorities to facilitate the enforcement of this Regulation.
3.  Competent authorities shall exchange information necessary for the enforcement of this Regulation. This shall include giving access to and exchange of data on operators and traders including due diligence statements, the nature and results of the controls carried out and any penalties imposed, with other Member States’ competent authorities to facilitate the enforcement of this Regulation. Competent authorities shall apply, when exchanging information, strict data protection rules in accordance with existing data protection law.
Amendment 177
Proposal for a regulation
Article 18 – paragraph 4
4.  Competent authorities shall immediately alert competent authorities of other Member States and the Commission when they detect infringement of this Regulation and serious shortcomings that may affect more than one Member State. Competent authorities shall, in particular, inform competent authorities of other Member States when they detect a relevant commodity or product on the market that is not compliant with this Regulation, to enable the withdrawal or recall of such commodity or product from sales in all Member States.
4.  Competent authorities shall immediately alert competent authorities of other Member States and the Commission when they detect an actual or potential infringement of this Regulation and serious shortcomings that may affect more than one Member State. Competent authorities shall, in particular, inform competent authorities of other Member States when they detect a relevant commodity or product on the market that is, or may be, not compliant with this Regulation, to enable the withdrawal or recall of such commodity or product from sales in all Member States or to support enforcement action by those competent authorities.
Amendment 178
Proposal for a regulation
Article 18 a (new)
Article 18a
Satellite imagery and access to forest data
The Commission shall establish a platform using satellite imagery, including Copernicus Sentinel, covering the forest areas worldwide, and featuring tools to enable all parties to quickly move towards no-deforestation across supply chains. The platform shall provide:
(a)  thematic maps, including a land cover map with time series since the cut-off date defined in Article 2, point (8), and a range of classes allowing to examine landscape composition;
(b)  an alert system, relying upon a monthly monitoring of forest cover change;
(c)  a range of analyses and user-friendly and secured outputs, depicting how supply chains are linked to deforestation.
The platform shall be made available to Member State authorities, interested third countries’ authorities, operators and traders.
Amendment 179
Proposal for a regulation
Article 19 – paragraph 1
1.  Member States shall make available to the public and the Commission, at the latest by 30 April of each year, information on the application of this Regulation during the previous calendar year. This information shall include their plans for checks, the number and the results of the controls carried out on operators and traders, including the contents of these checks, the volume of relevant commodities and products checked in relation to the total quantity of relevant commodities and products placed on the market, the countries of origin and of production of relevant commodities and products as well as the measures taken in case of non-compliance and the costs of controls recovered.
1.  Member States shall make available to the public and the Commission, at the latest by 30 April of each year, information on the application of this Regulation during the previous calendar year. This information shall include their plans for checks and the risk criteria on which they are based, including the number and results of the checks carried out on operators and traders and relevant commodities and products, the volume of relevant commodities and products checked in relation to the total quantity of relevant commodities and products placed on the market, the countries of origin and of production of relevant commodities and products as well as, in the event of non-compliance, the market surveillance measures taken in accordance with Article 22 and penalties imposed in accordance with Article 23.
Amendment 180
Proposal for a regulation
Article 20 – paragraph 1
Where relevant commodities or products were produced in a country or part thereof listed as high risk in accordance with Article 27, or there is a risk of relevant commodities or products produced in such countries or parts thereof entering the relevant supply chain, each Member State shall ensure that the annual checks carried out by their competent authorities cover at least 15% of the operators placing, making available on or exporting from the Union market each of the relevant commodities on their market as well as 15% of the quantity of each of the relevant commodities placed or made available on or exported from their market from high risk countries or parts thereof.
Where relevant commodities or products were produced in a country or part thereof listed as high risk in accordance with Article 27, or there is a risk of relevant commodities or products produced in such countries or parts thereof entering the relevant supply chain, each Member State shall ensure that the annual checks carried out by their competent authorities cover at least 20 % 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 20 % of the quantity of each of the relevant commodities and products placed or made available on or exported from their market from high risk countries or parts thereof. Competent authorities shall ensure that the annual checks carried out on the basis of this Article include all of the elements set out in Article 15.
Amendment 181
Proposal for a regulation
Article 21 – paragraph 1
Where, following the checks referred to in Article 15 and 16, possible serious shortcomings have been detected, or risks have been identified pursuant to Article 14(6), the competent authorities may take immediate interim measures, including seizure or suspension of the placing or making available on and exporting from the Union market of the relevant commodities and products.
Where, on the basis of the examination of evidence or other relevant information, including information exchanged under Article 18 and substantiated concerns provided by third parties under Article 29, or following the checks referred to in Article 15 and 16, possible infringements of this Regulation have been detected, or risks have been identified pursuant to Article 14(6), the competent authorities may take immediate interim measures, including seizure or suspension of the placing or making available on and exporting from the Union market of the relevant commodities and products. Member States shall immediately inform the Commission and the competent authorities of other Member States about such measures.
Amendment 182
Proposal for a regulation
Article 22 – paragraph 1
1.  Without prejudice to Article 23, where competent authorities establish that an operator or trader has not complied with its obligations under this Regulation or that a relevant commodity or product is not compliant with this Regulation, they shall without delay require the relevant operator or trader to take appropriate and proportionate corrective action to bring the non-compliance to an end.
1.  Without prejudice to Article 23, where competent authorities establish that an operator or trader has not complied with its obligations under this Regulation or that a relevant commodity or product is not compliant with the requirements set out in this Regulation, they shall without delay require the relevant operator or trader to take corrective action to bring the non-compliance to an end within a specified and reasonable period of time.
Amendment 183
Proposal for a regulation
Article 22 – paragraph 2 – point d
(d)  destroying the relevant commodity or product or donating it to charitable or public interest purposes.
(d)  donating, where possible, the relevant commodity or product to charitable or public interest purposes or otherwise recycling or, as a last resort, destroying it.
Amendment 184
Proposal for a regulation
Article 22 – paragraph 2 a (new)
2a.  Irrespective of the corrective action taken under paragraph 2, and with a view to preventing the risk of further infringements, the operator or trader shall address any shortcomings in the due diligence system which may have led to its non-compliance with this Regulation.
Amendment 185
Proposal for a regulation
Article 22 – paragraph 3
3.  If the operator or trader fails to take corrective action referred to in paragraph 2 or where the non-compliance referred to in paragraph 1 persists, competent authorities shall ensure that the product is withdrawn or recalled, or that its being made available on or exported from the Union market is prohibited or restricted.
3.  If the operator or trader fails to take corrective action referred to in paragraph 2 within the period of time specified by the competent authority under paragraph 1, competent authorities shall ensure that the commodity or product is withdrawn or recalled or that it is not made available on or exported from the Union market.
Amendment 186
Proposal for a regulation
Article 23 – paragraph 1
1.  Member States shall lay down rules on penalties applicable to infringements of the provisions of this Regulation by operators and traders and shall take all measures necessary to ensure that they are implemented. Member States shall notify the Commission of those provisions and without delay of any subsequent amendments affecting them.
1.  Within six months of the entry into force of this Regulation, the Commission shall adopt delegated acts supplementing this Regulation concerning uniform penalties applicable to infringements of the provisions of this Regulation by operators and traders, in order to ensure harmonised standards are applied across the Union. Member States shall take all measures necessary to ensure that they are implemented.
Amendment 187
Proposal for a regulation
Article 23 – paragraph 2 – introductory part
2.  The penalties provided for shall be effective, proportionate and dissuasive. Penalties shall include as a minimum:
2.  The penalties for shall be effective, proportionate, dissuasive and uniform across Member States. Penalties shall include as a minimum:
Amendment 188
Proposal for a regulation
Article 23 – paragraph 2 – point a
(a)  fines proportionate to the environmental damage and the value of the relevant commodities or products concerned, calculating the level of such fines in such way as to make sure that they effectively deprive those responsible of the economic benefits derived from their infringements, and gradually increasing the level of such fines for repeated infringements; the maximum amount of such fines shall be at least 4 % of the operators or trader’s annual turnover in the Member State or Member States concerned;
(a)  fines proportionate to the environmental damage, economic damage for local communities and the value of the relevant commodities or products concerned, calculating the level of such fines in such way as to make sure that they effectively deprive those responsible of the economic benefits derived from their infringements, and gradually increasing the level of such fines for repeated infringements; the maximum amount of such fines shall be at least 8%of the operators or trader’s annual turnover in the Union, calculated in accordance with Article 5(1) of Council Regulation (EC) No 139/20041a; and shall be increased to ensure that the penalty exceeds the potential economic advantage gained and shall be deterrent;
__________________
1a Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (OJ L 24, 29.1.2004, p. 1).
Amendment 189
Proposal for a regulation
Article 23 – paragraph 2 – point b a (new)
(ba)  the obligation to restore the environment;
Amendment 190
Proposal for a regulation
Article 23 – paragraph 2 – point b b (new)
(bb)  the obligation to compensate for damage done to any natural or legal person that the exercise of due diligence would have avoided;
Amendment 191
Proposal for a regulation
Article 23 – paragraph 2 – point d
(d)  temporary exclusion from public procurement processes.
(d)  temporary exclusion from public procurement processes and from access to public funding, including tendering procedures, grants and concessions;
Amendment 192
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
(da)  temporary or permanent prohibition from placing or making available relevant commodities and products on the Union market, or exporting them, in the event of a serious infringement or of repeated infringements;
Amendment 193
Proposal for a regulation
Article 23 – paragraph 2 – point d b (new)
(db)  prohibition from the use of the simplified due diligence procedure set out in Article 12, in the event of a serious infringement or of repeated infringements;
Amendment 194
Proposal for a regulation
Article 23 – paragraph 2 a (new)
2a.  Member States shall notify the Commission of operators and traders that have failed to fulfil their obligations under this Regulation and the penalties imposed on them by means of the information system referred to in Article 31 within 30 days of the relevant finding of non-compliance, taking due account the relevant data protection rules. The Commission shall publish a list of operators and traders concerned. They shall be informed of their inclusion in the list.
The list of non-compliant operators and traders shall contain the following elements:
(a)  the name of the operator or trader;
(b)  the date of the first inclusion on the list and the date from which sufficient remedial action was taken;
(c)  a summary of the activities justifying the inclusion of the operator or trader on the list; and
(d)  the nature and, where financial, the amount of the penalty imposed.
The list shall be made publicly available on the website of the Commission and regularly updated.
The Commission shall publish the list in the Official Journal of the European Union and in the Register referred to in Article 31.
Amendment 195
Proposal for a regulation
Article 23 – paragraph 2 b (new)
2b.  Member States shall notify the Commission when the non-compliant operator or trader referred to in paragraph 1 has taken sufficient remedial action, including have made full payment of penalties or carried out improvements to its due diligence system, and no other penalty or procedure concerning an alleged infringement has been reported.
The Commission shall remove the operator or trader concerned once remedial action has been taken. The Commission shall update the public list of operators and traders concerned every six months.
The Commission shall, without undue delay, notify the competent authorities of the removal of an operator or trader from the list and update the Register referred to in Article 31.
Amendment 196
Proposal for a regulation
Article 24 – paragraph 7 – subparagraph 1 – point b
(b)  Where the release for free circulation or export has been suspended in accordance with paragraph 6, the competent authorities have not requested, within the 3 working days indicated in Article 14(7), the need to maintain the suspension of the release for free circulation or export of that relevant commodity or product;
(b)  Where the release for free circulation or export has been suspended in accordance with paragraph 6, the competent authorities have not requested, within the five working days, or 72 hours for fresh commodities and products which are at risk of spoilage, indicated in Article 14(7), the need to maintain the suspension of the release for free circulation or export of that relevant commodity or product;
Amendment 197
Proposal for a regulation
Article 24 – paragraph 8 – subparagraph 2
Upon notification of that status, customs authorities shall not allow the release for free circulation or export of that relevant commodity or product. They shall also include the following notice in the customs data-processing system and, where possible, on the commercial invoice accompanying the relevant commodity or product and on any other relevant accompanying document: ‘Non-compliant commodity or product — release for free circulation/export not authorised — Regulation (EU) 2021/XXXX.’ [OP to indicate reference of this Regulation]
Upon notification of the non-compliant status, customs authorities shall not allow the release for free circulation or export of that relevant commodity or product. They shall also include the following notice in the customs data-processing system and, where possible, on the commercial invoice accompanying the relevant commodity or product and on any other relevant accompanying document: ‘Non-compliant commodity or product — release for free circulation/export not authorised — Regulation (EU) 2021/XXXX.’ [OP to indicate reference of this Regulation]
Amendment 198
Proposal for a regulation
Article 24 – paragraph 10
10.  Customs authorities may destroy a non-compliant relevant commodity or product upon the request of the competent authorities or where they deem it necessary and proportionate. The cost of such measure shall be borne by the natural or legal person holding the relevant commodity or product. Articles 197 and 198 of Regulation (EU) No 952/2013 shall apply accordingly. Upon request of competent authorities, non-compliant relevant commodities and products may alternatively be confiscated and placed by customs at the disposal of the competent authorities.
10.  Customs authorities may donate the relevant commodity or product to charitable or public interest purposes or, and only if such donation is not possible, recycle or, as a last resort, destroy a non-compliant relevant commodity or product upon the request of the competent authorities or where they deem it necessary and proportionate. The cost of such measure shall be borne by the natural or legal person holding the relevant commodity or product.
Amendment 199
Proposal for a regulation
Article 25 – paragraph 4
4.  Where, in relation to relevant commodities and products subject to this Regulation that are either in temporary storage or placed under a customs procedure other than ‘release for free circulation’, customs authorities at the first point of entry have reason to believe that those relevant commodities or products are not compliant with this Regulation, they shall transmit all relevant information to the competent customs office of destination.
4.  Where, in relation to relevant commodities and products subject to this Regulation that are either in temporary storage or placed under a customs procedure other than ‘release for free circulation’, customs authorities at the first point of entry have reason to believe that those relevant commodities or products are not compliant with this Regulation, they shall transmit all relevant information to the competent customs office of destination as well as to the competent authorities responsible for carrying out the obligations arising from this Regulation.
Amendment 200
Proposal for a regulation
Article 26 – paragraph 1
1.  The Commission shall develop an electronic interface based on the EU Single Window Environment for Customs to enable the transmission of data, in particular the notifications and requests referred to in Article 24, paragraphs 5 to 8, between national customs systems and the information system referred to in Article 31. This electronic interface shall be in place at the latest four years from the date of adoption of the relevant implementing act referred to in paragraph 3.
1.  The Commission shall develop an electronic interface based on the EU Single Window Environment for Customs to enable the transmission of data, in particular the notifications and requests referred to in Article 24, paragraphs 5 to 8, between national customs systems and the information system referred to in Article 31. This electronic interface shall be in place at the latest one year from the date of adoption of the relevant implementing act referred to in paragraph 3.
Amendment 201
Proposal for a regulation
Article 26 – paragraph 2 – introductory part
2.  The Commission may develop an electronic interface based on the EU Single Window Environment for Customs to enable:
2.  The Commission shall develop an electronic interface based on the EU Single Window Environment for Customs to enable:
Amendment 202
Proposal for a regulation
Article 27 – paragraph 1
1.  This Regulation establishes a three-tier system for the assessment of countries or parts thereof. Unless identified in accordance with this Article as presenting a low or high risk, countries shall be considered as presenting a standard risk. The Commission may identify countries or parts thereof that present a low or high risk of producing relevant commodities or products that are not compliant with Article 3, point (a). The list of the countries or parts thereof that present a low or high risk shall be published by means of implementing act(s) to be adopted in accordance with the examination procedure referred to in Article 34(2). That list shall be updated as necessary in light of new evidence.
1.  This Regulation establishes a three-tier system for the assessment of countries or parts thereof. Unless identified in accordance with this Article as presenting a low or high risk, countries shall be considered as presenting a standard risk. The Commission shall identify countries or parts thereof that present a low or high risk of producing relevant commodities or products that are not compliant with Article 3, point (a). The list of the countries or parts thereof that present a low or high risk shall be published by means of implementing act(s) to be adopted in accordance with the examination procedure referred to in Article 34(2) by ... [OP: insert date 6 months of the entry into force of this Regulation]. That list shall be updated as necessary in light of new evidence.
Amendment 203
Proposal for a regulation
Article 27 – paragraph 2 – introductory part
The identification of low and high risk countries or parts thereof pursuant to paragraph 1 shall take into account information provided by the country concerned and be based on the following assessment criteria:
The identification of low and high risk countries or parts thereof pursuant to paragraph 1 shall follow a transparent and objective assessment process which shall take into account information provided by the country and by the regional authorities concerned, operators as well as NGOs and third parties, including indigenous peoples, local communities and civil society organisations and be based on the following assessment criteria:
Amendment 204
Proposal for a regulation
Article 27 – paragraph 2 – point a
(a)  rate of deforestation and forest degradation,
(a)  rate of deforestation, forest degradation and forest conversion,
Amendment 205
Proposal for a regulation
Article 27 – paragraph 2 – point d
(d)  whether the nationally determined contribution (NDC) to the United Nations Framework Convention on Climate Change covers emissions and removals from agriculture, forestry and land use which ensures that emissions from deforestation and forest degradation are accounted towards the country's commitment to reduce or limit greenhouse gas emissions as specified in the NDC;
(d)  whether the nationally determined contribution (NDC) to the United Nations Framework Convention on Climate Change covers emissions and removals from agriculture, forestry and land use which ensures that emissions from deforestation, forest degradation and forest conversion are accounted towards the country's commitment to reduce or limit greenhouse gas emissions as specified in the NDC;
Amendment 206
Proposal for a regulation
Article 27 – paragraph 2 – point e
(e)  agreements and other instruments concluded between the country concerned and the Union that address deforestation or forest degradation and facilitates compliance of relevant commodities and products with the requirements of this Regulation and their effective implementation;
(e)  agreements and other instruments concluded between the country concerned and the Union that address deforestation, forest degradation or forest conversion and facilitates compliance of relevant commodities and products with the requirements of this Regulation, provided that their timely and effective implementation has been ascertained on the basis of an objective and transparent assessment;
Amendment 207
Proposal for a regulation
Article 27 – paragraph 2 – point f
(f)  whether the country concerned has national or subnational laws in place, including in accordance with Article 5 of the Paris Agreement, and takes effective enforcement measures to avoid and sanction activities leading to deforestation and forest degradation, and in particular whether sanctions of sufficient severity to deprive of the benefits accruing from deforestation or forest degradation are applied.
(f)  whether the country concerned has national or subnational laws in place, including in accordance with Article 5 of the Paris Agreement and relevant laws and standards as defined in Article 2, point (28), of this Regulation, and takes effective enforcement measures to ensure that those laws are implemented and to avoid and sanction activities leading to deforestation, forest degradation and forest conversion, and in particular whether sanctions of sufficient severity to deprive of the benefits accruing from deforestation, forest degradation or forest conversion or non-compliance with the relevant laws and standards as defined in Article 2, point (28), are applied.
Amendment 208
Proposal for a regulation
Article 27 – paragraph 2 – point f a (new)
(fa)  whether the national and sub-national jurisdiction has developed jurisdictional approaches with the meaningful engagement of all relevant stakeholders, including civil society, indigenous peoples and local communities, and the private sector, including micro-enterprises and other SMEs, and smallholders, to tackle deforestation, forest degradation, forest conversion, land rights violations and illegal production;
Amendment 209
Proposal for a regulation
Article 27 – paragraph 2 – point f b (new)
(fb)  whether the country concerned makes relevant data available transparently;
Amendment 210
Proposal for a regulation
Article 27 – paragraph 2 – point f c (new)
(fc)  if applicable, the existence, compliance with, and effective enforcement of, laws protecting the rights of indigenous peoples, local communities and other customary tenure rights holders.
Amendment 211
Proposal for a regulation
Article 27 – paragraph 3 – subparagraph 1
The Commission shall notify the countries concerned of its intent to assign a change to the existing risk category and invite them to provide any information deemed useful in this regard. The Commission shall allow the countries adequate time to provide a response, which may include information on measures taken by the country to remedy the situation in case its status or the status of parts thereof might be changed to a higher risk category.
The Commission shall notify the countries, regional authorities as well as the operators and traders concerned of its intent to assign a change to the risk-category of a country or part thereof and invite them to provide any information deemed useful in this regard. The Commission shall also carry out a public consultation to gather information and views from interested parties, including in particular indigenous peoples, local communities, smallholders and civil society organisations. The Commission shall allow the countries and regional authorities adequate time to provide a response, which may include information on measures taken by the country or regional authority to remedy the situation in case its status or the status of parts thereof might be changed to a higher risk category.
Amendment 212
Proposal for a regulation
Article 27 – paragraph 3 – subparagraph 2 – introductory part
It shall include in the notification the following information:
It shall include in the notification and in the consultation the following information:
Amendment 213
Proposal for a regulation
Article 28 – paragraph 1
1.  The Commission shall engage with producer countries concerned by this Regulation to develop partnerships and cooperation to jointly address deforestation and forest degradation. Such partnerships and cooperation mechanisms will focus on the conservation, restoration and sustainable use of forests, deforestation, forest degradation and the transition to sustainable commodity production, consumption processing and trade methods. Partnerships and cooperation mechanisms may include structured dialogues, support programmes and actions, administrative arrangements and provisions in existing agreements or agreements that enable producer countries to make the transition to an agricultural production that facilitates the compliance of relevant commodities and products with the requirements of this regulation. Such agreements and their effective implementation will be taken into account as part of the benchmarking under Article 27 of this Regulation.
1.  In a coordinated approach the Commission and Member States, shall engage with producer countries concerned by this Regulation, local governments and interested parties, in particular those exporting significant volumes of commodities listed in Annex I, including via the use of existing and future partnerships and free trade agreements and the alignment of existing aid tools to jointly address the root causes of deforestation, forest degradation and forest conversion. Such partnerships and cooperation mechanisms shall be supported with adequate resources and shall focus on the conservation, restoration and sustainable use of forests, deforestation, forest degradation, forest conversion and the transition to sustainable commodity production, consumption processing and trade methods, good governance, as well as protecting the rights and livelihoods and subsistence of forest-dependent communities, including indigenous peoples, local communities, other customary tenure rights holders and smallholders. Partnerships and cooperation mechanisms may include, but are not limited to, structured dialogues, financial and technical support programmes and actions, administrative arrangements that enable producer countries and parts thereof to make the transition to an agricultural production that facilitates the compliance of relevant commodities and products with the requirements of this regulation. The Commission shall ensure that indigenous peoples, local communities and civil society, are involved in the development of joint roadmaps. The joint roadmaps shall be based on milestones agreed with local stakeholders. The Commission shall particularly engage with producing countries to remove legal obstacles to their compliance, including national land tenure governance and data protection law. The aim of those partnerships shall be the development of joint roadmaps, including sustained dialogue and cooperation, in particular with countries and parts thereof identified as high-risk, to support their continuous improvement towards the standard risk category referred to in Article 27. Partnerships and cooperation mechanisms shall pay particular attention to smallholders in order to enable these smallholders to transition to sustainable farming and forestry practices and to comply with the requirements of this Regulation, including through enabling sufficient and user-friendly information. Adequate financial resources shall be available to meet the needs of smallholders.
Amendment 265
Proposal for a regulation
Article 28 – paragraph 1 a (new)
1a.   The Commission and the Council shall engage further to implement and enforce trade agreements as well as concluding new free trade agreements that include strong provisions on sustainability, particularly for forests, and the obligation for effective enforcement of multilateral environmental agreements, such as the Paris Agreement and the Convention on Biological Diversity.
Amendments 214 and 266
Proposal for a regulation
Article 28 – paragraph 2
2.  Partnerships and cooperation should allow the full participation of all stakeholders, including civil society, indigenous people, local communities and the private sector including, SMEs and smallholders.
2.  Partnerships and cooperation shall have adequate financial resources and shall take full account of the information and alerts provided by the EU Observatory. They shall allow the full participation of all stakeholders, including civil society, indigenous peoples, local communities, women and the private sector including micro enterprises and other SMEs, and smallholders. Partnerships and cooperation shall also support or initiate inclusive and participatory dialogue towards national legal and governance reform processes to enhance forest governance and address domestic factors contributing to deforestation.
Amendment 215
Proposal for a regulation
Article 28 – paragraph 2 a (new)
2a.  To ensure that the enforcement of this Regulation is not unduly restrictive or disruptive to trade, especially towards relevant LDCs, the Commission shall supply specific administrative and capacity-building support to governments, local governments, civil society organisations, including trade unions, and producers, particularly small producers, in third countries aimed to facilitate compliance by these actors with the administrative requirements of this Regulation.
Amendment 216
Proposal for a regulation
Article 28 – paragraph 3
3.  Partnerships and cooperation shall promote the development of integrated land use planning processes, relevant legislations, fiscal incentives and other pertinent tools to improve forest and biodiversity conservation, sustainable management and restoration of forests, tackle the conversion of forests and vulnerable ecosystems to other land uses, optimise gains for the landscape, tenure security, agriculture productivity and competitiveness, transparent supply chains, strengthen the rights of forest dependent communities including smallholders, indigenous peoples and local communities, and ensure public access to forest management documents and other relevant information.
3.  Partnerships and cooperation shall promote the development of integrated land use planning processes, relevant legislations, including multi-stakeholder processes to establish the scope of relevant legislation, fiscal or commercial incentives and other pertinent tools to improve forest and biodiversity conservation, sustainable management and restoration of forests, tackle the conversion of forests and vulnerable ecosystems to other land uses, optimise gains for the landscape, tenure security, agriculture productivity and competitiveness, transparent supply chains and traceability, protect the rights of ownership, tenure and access to land, including rights of tree tenure for local and indigenous communities, and the right to give or withhold free, prior and informed consent, strengthen the rights of forest dependent communities that depend on the forest including smallholders, indigenous peoples and local communities strengthen national systems of governance and law enforcement, and ensure public access to forest management documents and other relevant information. The Commission shall aim to integrate the monitoring of land and tenure rights under the EU Observatory.
Amendment 217
Proposal for a regulation
Article 28 – paragraph 4
4.  The Commission shall engage in international bilateral and multilateral discussion on policies and actions to halt deforestation and forest degradation, including in multilateral fora such as Convention on Biological Diversity, Food and Agriculture Organization of the United Nations, United Nations Convention to Combat Desertification, United Nations Environment Assembly, United Nations Forum on Forests, United Nations Framework Convention on Climate Change, World Trade Organisation, G7 and G20. Such engagement shall include the promotion of the transition to sustainable agricultural production and sustainable forest management as well as the development of transparent and sustainable supply chains as well as continue efforts towards identifying and agreeing robust standards and definitions that ensure a high level of protection of forest ecosystems.
4.  The Commission shall engage in international bilateral and multilateral discussion on policies and actions to halt deforestation, forest degradation and forest conversion, including in multilateral fora such as Convention on Biological Diversity, Food and Agriculture Organization of the United Nations, United Nations Convention to Combat Desertification, United Nations Environment Assembly, United Nations Forum on Forests, United Nations Framework Convention on Climate Change, World Trade Organisation, G7 and G20. Such engagement shall include the promotion of the transition to sustainable agricultural production and sustainable forest management as well as the development of transparent and sustainable supply chains as well as continue efforts towards identifying and agreeing robust standards and definitions that ensure a high level of protection of forests and other natural ecosystems and related human rights.
Amendment 218
Proposal for a regulation
Article 29 – paragraph 2
2.  Competent authorities shall diligently and impartially assess the substantiated concerns and take the necessary steps, including checks and hearings of operators and traders, with a view to detecting potential breaches of the provisions of this Regulation and, where appropriate, interim measures under Article 21 to prevent the placing making available on and export from the Union market of relevant commodities and products under investigation.
2.  Competent authorities shall, without undue delay, diligently and impartially assess the substantiated concerns and take the necessary steps, including checks and hearings of operators and traders, with a view to detecting potential breaches of the provisions of this Regulation and, where appropriate, interim measures under Article 21 to prevent the placing making available on and export from the Union market of relevant commodities and products under investigation and shall inform the Commission about the measures put in place.
Amendment 219
Proposal for a regulation
Article 29 – paragraph 3
3.  The competent authority shall, as soon as possible and in accordance with the relevant provisions of national law, inform the natural or legal persons referred to in paragraph 1, which submitted observations to the authority, of its decision to accede to or refuse the request for action and shall provide the reasons for it.
3.  The competent authority shall, within 30 days of receiving a substantiated concern, and in accordance with the relevant provisions of national law, inform the natural or legal persons referred to in paragraph 1, which submitted substantiated concerns to the authority, of its assessment of their substantiated concern, pursuant to paragraph 2, and the decision to accept or refuse the request for action and shall provide the reasons for it. Where further action is taken pursuant to paragraph 2, the competent authority shall inform the natural or legal persons without undue delay of the nature and timeline of the measures to be taken.
Amendment 220
Proposal for a regulation
Article 29 – paragraph 3 a (new)
3a.  In order to facilitate the transmission of substantiated concerns from natural or legal persons from producer countries, and especially from local communities, the Commission shall establish a centralised communication procedure to channel those concerns to the relevant Member States. That procedure shall be complementary to those established by competent authorities.
Amendment 221
Proposal for a regulation
Article 29 – paragraph 3 b (new)
3b.  Member States shall provide for measures to protect the identity of the natural or legal persons who submit substantiated concerns or who carry out investigations with the aim of verifying compliance by operators or traders with this Regulation.
Amendment 222
Proposal for a regulation
Article 30 – paragraph 2 a (new)
2a.  Access to a court or other independent and impartial public body pursuant to paragraph 1 shall be fair, equitable, timely and not prohibitively expensive and provide adequate and effective remedies, including injunctive relief where appropriate. Member States shall ensure that practical information is made available to the public on access to administrative and judicial review procedures.
Amendment 223
Proposal for a regulation
Article 31 – paragraph 1
1.  The Commission shall establish and maintain, by the date established in Article 36(2), an information system (“Register”) which shall contain the due diligence statements made available pursuant to Article 4(2).
1.  The Commission shall establish and maintain, by the date established in Article 36(2), an information system (“Register”) which shall contain the due diligence statements made available pursuant to Article 4(2) and the list of non-compliant operators and traders referred to in Article 23.
Amendment 224
Proposal for a regulation
Article 31 – paragraph 2 – point c
(c)  registration of the outcome of controls on due diligence statements;
(c)  registration of the outcome of controls on due diligence statements and the penalties imposed;
Amendment 225
Proposal for a regulation
Article 31 – paragraph 4
4.  The Commission shall provide access to that information system to customs authorities, competent authorities, operators and traders in accordance with their respective obligations under this Regulation.
4.  The Commission shall provide access to that information system to customs authorities, competent authorities, operators and traders, or their legal representatives, or both, and suppliers concerned in accordance with their respective obligations under this Regulation. Suppliers concerned shall have the right to consult all information which pertains to them.
Amendment 226
Proposal for a regulation
Article 31 – paragraph 5
5.  In line with the EU’s Open Data Policy, and in particular the Directive (EU) 2019/102451 , the Commission shall provide access to the wider public to the complete anonymised datasets of the information system in an open format that can be machine-readable and that ensures interoperability, re-use and accessibility.
5.  Without prejudice to Article 23 and in line with the EU’s Open Data Policy, and in particular the Directive (EU) 2019/102451, the Commission shall provide access to the wider public, except for the information in paragraph 2, point (e), of this Article, to the complete anonymised datasets of the information system in an open format that can be machine-readable and that ensures interoperability, re-use and accessibility.
__________________
__________________
51 Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56–83).
51 Directive (EU) 2019/1024 of the European Parliament and of the Council of 20 June 2019 on open data and the re-use of public sector information (OJ L 172, 26.6.2019, p. 56).
Amendment 227
Proposal for a regulation
Article 32 – paragraph 1
1.  No later than two years after the entry into force, the Commission shall carry out a first review of this Regulation, and shall present a report to the European Parliament and the Council accompanied, if appropriate, by a legislative proposal. The report shall focus in particular on an evaluation of the need and the feasibility of extending the scope of this Regulation to other ecosystems, including land with high carbon stocks and land with a high biodiversity value such as grasslands, peatlands and wetlands and further commodities.
1.  Following the entry into force of this Regulation, the Commission shall continuously review its application. The Commission shall:
(a)   present, no later than ... [OP: insert date one year after the date of entry into force of this Regulation], an impact assessment accompanied, where appropriate, by a legislative proposal , to extend the scope of this Regulation to other natural ecosystems, including land with high carbon stocks and land with a high biodiversity value such as grasslands, peatlands and wetlands, in addition to forest and other wooded land in accordance with the cut-off date and definitions as referred to in Article 2,
(b)   evaluate, no later than ... [OP: insert date two years after the date of entry into force of this Regulation]:
(i)   the need and feasibility of extending the scope of this Regulation to other commodities and products, in particular additional products derived from the commodities listed in Annex I as well as to additional commodities and products, specifically sugar cane, ethanol and mining products;
(ii)  the impact of this Regulation on farmers, in particular smallholders, indigenous peoples and local communities and the possible need for additional support for the transition towards sustainable supply chains and for smallholders to comply with the requirements of this Regulation;
(iii)  the need for and feasibility of additional trade facilitation tools, in particular for LDCs highly impacted by this Regulation and countries identified as standard or high risk, to support the achievement of the objectives of this Regulation;
(c)  analyse, within one year of the adoption of [the forthcoming Directive on corporate sustainability due diligence], if any guidelines are needed to facilitate the implementation of this Regulation and ensure coherence between this Regulation and [the forthcoming Directive on corporate sustainability due diligence], and to avoid undue administrative burden.
Amendment 228
Proposal for a regulation
Article 32 – paragraph 2 – introductory part
No later than five years after the entry into force and at least every five years thereafter, the Commission shall carry out a general review of this Regulation, and shall present a report to the European Parliament and the Council accompanied, if appropriate, by a legislative proposal. The first of the reports shall include in particular, based on specific studies, an evaluation of:
Without prejudice to the reviews scheduled in paragraph 1, the Commission shall conduct at regular intervals a review of Annex I in order to assess if it is appropriate to amend or extend the relevant products listed in Annex I in order to ensure that all products that contain, have been fed with, or made using, relevant commodities are included in that list, unless the demand for those products has a negligible effect on deforestation. The reviews shall be based on an assessment of the effect of the relevant commodities and products on deforestation, forest degradation and forest conversion, and shall take into account changes in consumption, including a detailed assessment of changes to the patterns of trade in the sectors covered by this Regulation, as indicated by scientific evidence.
Amendment 229
Proposal for a regulation
Article 32 – paragraph 2 – point a
(a)  the need for and feasibility of additional trade facilitation tools to support the achievement of the objectives of the Regulation including through recognition of certification schemes;
deleted
Amendment 230
Proposal for a regulation
Article 32 – paragraph 2 – point b
(b)  the impact of the Regulation on farmers, in particular smallholders, indigenous peoples and local communities and the possible need for additional support for the transition to sustainable supply chains.
deleted
Amendment 231
Proposal for a regulation
Article 32 – paragraph 3
3.  Without prejudice to the general review under paragraph 1, a first review of Annex I shall be carried out by the Commission no later than two years after the entry into force of this Regulation, and thereafter at regular intervals in order to assess whether it is appropriate to amend or extend the relevant products listed in Annex I in order to ensure that all products that contain, have been fed with or have been made using relevant commodities are included in that list, unless the demand for those products has a negligible effect on deforestation. The reviews shall be based on an assessment of the effect of the relevant commodities and products on deforestation and forest degradation, and take into account changes in consumption, as indicated by scientific evidence.
3.  The Commission shall continuously monitor the impact of this Regulation on vulnerable stakeholders such as smallholders, indigenous peoples and local communities, especially in third countries, also paying particular regard to the situation of women. The monitoring shall be based on a scientific and transparent methodology and shall take into account information provided by interested stakeholders.
Amendment 232
Proposal for a regulation
Article 32 – paragraph 3 a (new)
3a.  The Commission shall continuously monitor changes in the trade patterns of the products and commodities included in the scope of this Regulation. When changes in the pattern of trade are found to have insufficient due cause or economic justification other than to avoid obligations as laid down in this Regulation, including replacing those products and commodities with other products and commodities which are not included in the list of products and commodities in Annex I but have similar characteristics, this shall be viewed as a practice of circumvention. Interested parties may inform the Commission of any perceived circumvention and the Commission shall investigate any substantiated claim introduced by an interested party.
Amendment 233
Proposal for a regulation
Article 32 – paragraph 4
4.  Following a review as set out in paragraph 3, the Commission may adopt delegated acts in accordance with Article 33 to amend Annex I to include relevant products that contain or have been made using relevant commodities.
4.  Following any of the reviews as set out in paragraphs 1 to 4, the Commission is empowered to adopt delegated acts in accordance with Article 33 to supplement the list in Annex I, or, if appropriate, present a legislative proposal to amend this Regulation.
Amendment 234
Proposal for a regulation
Article 33 – paragraph 4
4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
4.  Before adopting a delegated act, the Commission shall consult stakeholders and experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
Amendment 235
Proposal for a regulation
Article 35 a (new)
Article 35a
Amendment of Directive 2003/35/EC
Annex I of Directive 2003/35/EC1a of the European Parliament and of the Council is amended by adding the following point:
(ga)  Article 14(3) of [Regulation (EU) No XXXX/XX of the European Parliament and of the Council of ... on the 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]*.
_______________________
1a Directive 2003/35/EC of the European Parliament and of the Council of 26 May 2003 providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC (OJ L 156, 25.6.2003, p. 17).
* OJ: Please add the number and date of this Regulation and a footnote containing its publication reference.
Amendment 236
Proposal for a regulation
Article 36 – paragraph 3
3.  Articles referred to paragraph 2 shall apply 24 months from the entry into force of this Regulation for operators that are microenterprises53 established by 31 December 2020, except for products covered in the Annex to Regulation (EU) No 995/2010.
3.  Articles referred to paragraph 2 shall apply 24 months from the entry into force of this Regulation for operators that are microenterprises and small enterprises53 established by 31 December 2020, except for products covered in the Annex to Regulation (EU) No 995/2010.
__________________
__________________
53 As defined in Article 3(1) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC.
53 As defined in Article 3(1) and (2) of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC.
Amendments 237 and 246
Proposal for a regulation
Annex I

Text proposed by the Commission

 

Cattle

ex 0102 Live cattle

ex 0201 Meat of cattle, fresh or chilled

ex 0202 Meat of cattle, frozen

ex 0206 10 Edible offal of cattle, fresh or chilled

ex 0206 22 Edible cattle livers, frozen

ex 0206 29 Edible cattle offal (excluding tongues and livers), frozen

ex 4101 Raw hides and skins of cattle (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not dehaired or split

ex 4104 Tanned or crust hides and skins of cattle, without hair on, whether or not split, but not further prepared

ex 4107 Leather of cattle, further prepared after tanning or crusting, including parchment-dressed leather, without hair on, whether or not split

Cocoa

1801 00 00 Cocoa beans, whole or broken, raw or roasted

1802 00 00 Cocoa shells, husks, skins and other cocoa waste

1803 Cocoa paste, whether or not defatted

1804 00 00 Cocoa butter, fat and oil

1805 00 00 Cocoa powder, not containing added sugar or other sweetening matter

1806 Chocolate and other food preparations containing cocoa

Coffee

0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion

Oil palm

1511 Palm oil and its fractions, whether or not refined, but not chemically modified

1207 10 Palm nuts and kernels

1513 21 Crude palm kernel and babassu oil and fractions thereof

1513 29 Palm kernel and babassu oil and their fractions, whether or not refined, but not chemically modified (excluding Crude oil)

2306 60 Oilcake and other solid residues of palm nuts or kernels, whether or not ground or in the form of pellets, resulting from the extraction of palm nuts oils or kernels oils

Soya

1201 Soya beans, whether or not broken

1208 10 Soya bean flour and meal

1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified

2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil

Wood

4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms

4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared

4406 Railway or tramway sleepers (cross-ties) of wood

4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm

4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for other similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm

4409 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed

4410 Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances

4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances

4412 Plywood, veneered panels and similar laminated wood

4413 00 00 Densified wood, in blocks, plates, strips or profile shapes

4414 00 Wooden frames for paintings, photographs, mirrors or similar objects

4415 Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood

(Not including packing material used exclusively as packing material to support, protect or carry another product placed on the market.)

4416 00 00 Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves

4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes

Pulp and paper of Chapters 47 and 48 of the Combined Nomenclature, with the exception of bamboo-based and recovered (waste and scrap) products

9403 30, 9403 40, 9403 50 00, 9403 60 and 9403 90 30 Wooden furniture

9406 10 00 Prefabricated buildings of wood

Amendment

 

Cattle

ex 0102 Live cattle

ex 0201 Meat of cattle, fresh or chilled

ex 0202 Meat of cattle, frozen

ex 0206 10 Edible offal of cattle, fresh or chilled

ex 0206 22 Edible cattle livers, frozen

ex 0206 29 Edible cattle offal (excluding tongues and livers), frozen

ex 0206 10 Edible offal of bovine animals, fresh or chilled

ex 0206 21 Edible tongues of bovine animals, frozen

ex 021020 Meat of cattle, salted, in brine, dried or smoked

ex 1602 50 Meat or meat offal of cattle, prepared or preserved

ex 4101 Raw hides and skins of cattle (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment-dressed or further prepared), whether or not dehaired or split

ex 4104 Tanned or crust hides and skins of cattle, without hair on, whether or not split, but not further prepared

ex 4107 Leather of cattle, further prepared after tanning or crusting, including parchment-dressed leather, without hair on, whether or not split

Swine

0103 Live swine

0203 Meat of swine, fresh, chilled or

frozen

0210 11 Hams, shoulders and cuts

thereof, with bone in, of domestic swine

0210 12 Bellies (streaky) and cuts thereof,

of domestic swine

0210 19 Other meat of domestic swine

209 10 Pig fat, free of lean meat, not

rendered or otherwise extracted, fresh,

chilled, frozen, salted, in brine, dried or

smoked

Sheep and Goats

0104 Live sheep and goats

0204 Meat of sheep or goats, fresh, chilled or frozen

Poultry

0105 Live poultry, that is to say, fowls of

the species Gallus domesticus, ducks,

geese, turkeys and guinea fowls

0207 Meat and edible offal, of the poultry

heading 0105, fresh, chilled or frozen

0209 90 Poultry fat, not rendered or

otherwise extracted, fresh, chilled, frozen,

salted, in brine, dried or smoked

0210 99 39 Salted poultry meat

1602 31 – 1602 32 – 1602 39 Prepared and preserved poultry

Cocoa

1801 00 00 Cocoa beans, whole or broken, raw or roasted

1802 00 00 Cocoa shells, husks, skins and other cocoa waste

1803 Cocoa paste, whether or not defatted,

1804 00 00 Cocoa butter, fat and oil,

1805 00 00 Cocoa powder, not containing added sugar or other sweetening matter

1806 Chocolate and other food preparations containing cocoa

Coffee

0901 Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion

Oil palm

1511 Palm oil and its fractions, whether or not refined, but not chemically modified

1207 10 Palm nuts and kernels

1513 21 Crude palm kernel and babassu oil and fractions thereof

1513 29 Palm kernel and babassu oil and their fractions, whether or not refined, but not chemically modified (excluding Crude oil)

2306 60 Oilcake and other solid residues of palm nuts or kernels, whether or not ground or in the form of pellets, resulting from the extraction of palm nuts oils or kernels oils

2905 17 Dodecan-1-ol (lauryl Alcohol), Hexadecan-1-ol (cetyl Alcohol), and Octadecan-1-ol (stearyl Alcohol)

2905 45 Alcohols; polyhydric, glycerol

2915 70 Palmitic acid, stearic acid, their salts and esters

2915 90 Acids; saturated acyclic monocarboxylic acids; anhydrides, halides, peroxides, peroxyacids and halogenated, sulphonated, nitrated or nitrosated derivatives, n.e.c. in heading no. 2915

HS code groups and subheadings 1517…, 3401…, 3823…, 3824…, 3826 Palm-oil and palm kernel oil-based derivates

Soya

1201 Soya beans, whether or not broken

1208 10 Soya bean flour and meal

1507 Soya-bean oil and its fractions, whether or not refined, but not chemically modified

2304 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil

Maize

1005 Maize (corn)

1102 20 Maize (corn) flour

1103 13 Cereal groats, meal and pellets of

maize (corn)

1103 29 40 Pellets of maize

1104 19 50 Cereal grains otherwise

worked of maize

1104 23 Other worked grains of maize

(corn)

1108 12 00 Maize (corn) starch

1515 21 Maize (corn) oil and its fractions:

Crude oil

1904 10 10 Prepared foods obtained by

the swelling or roasting of cereals or

cereal products obtained from maize

2302 10 Bran, sharps and other residues,

whether or not in the form of pellets

derived from the sifting, milling or other

working of cereals or of leguminous

plants of maize (corn)

1515 29 Maize oil and fractions thereof, whether or not refined, but not chemically modified (excl. crude)

2306 90 05 Oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of maize (corn) germ

Wood

4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles; sawdust and wood waste and scrap, whether or not agglomerated in logs, briquettes, pellets or similar forms

4402 Wood charcoal, incl. shell or nut charcoal, whether or not agglomerated (excl. wood charcoal used as a medicament, charcoal mixed with incense, activated charcoal and charcoal in the form of crayons)

4403 Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared

4406 Railway or tramway sleepers (cross-ties) of wood

4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6 mm

4408 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for other similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm

4409 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed

4410 Particle board, oriented strand board (OSB) and similar board (for example, waferboard) of wood or other ligneous materials, whether or not agglomerated with resins or other organic binding substances

4411 Fibreboard of wood or other ligneous materials, whether or not bonded with resins or other organic substances

4412 Plywood, veneered panels and similar laminated wood

4413 00 00 Densified wood, in blocks, plates, strips or profile shapes

4414 00 Wooden frames for paintings, photographs, mirrors or similar objects

4415 Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums of wood; pallets, box pallets and other load boards, of wood; pallet collars of wood

(Not including packing material used exclusively as packing material to support, protect or carry another product placed on the market.)

4416 00 00 Casks, barrels, vats, tubs and other coopers’ products and parts thereof, of wood, including staves

4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled flooring panels, shingles and shakes

Pulp and paper of Chapters 47 and 48 of the Combined Nomenclature, with the exception of bamboo-based and recovered (waste and scrap) products

4900 Printed books, newspapers, pictures and other products of the printing industry, manuscripts, typescripts and plans

9403 30, 9403 40, 9403 50 00, 9403 60 and 9403 90 30 Wooden furniture

9406 10 00 Prefabricated buildings of wood

Rubber

4001 Natural rubber, balata, gutta-percha, guayule, chicle and similar gums; in primary forms or in plates, sheets or strip

4005 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip

4006 Unvulcanised rubber in other forms (e.g. rods, tubes and profile shapes) and articles (e.g. discs and rings)

4007 Vulcanised rubber thread and cord

4008 Plates, sheets, strips, rods and profile shapes, of vulcanised rubber other than hard rubber

4010 Conveyer or transmission belts or belting, of vulcanised rubber

4011 New pneumatic tyres, of rubber (other)

4012 Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, interchangeable tyre treads and tyre flaps, of rubber

4013 Inner tubes, of rubber

4015 Articles of apparel and clothing accessories (including gloves), for all purposes of vulcanised rubber other than hard rubber

4016 Articles of vulcanised rubber other than hard rubber, not elsewhere specified in chapter 40

4017 Hard rubber (i.e. ebonite) in all forms including waste and scrap; articles of hard rubber

Amendment 238
Proposal for a regulation
Annex II – paragraph 1 – point 2
2.  Harmonised System code, free-text description, and quantity70 of the relevant commodity or product that is intended to be placed on the Union market by the operator;
2.  Harmonised System code, free-text description, including the trade name as well as, where applicable, the full scientific name, and quantity70 of the relevant commodity or product that is intended to be placed on or exported from the Union market by the operator.
__________________
__________________
70 The quantity must be expressed in kilograms of net mass and, when applicable, also in the supplementary unit set out in Annex I to Council Regulation (EEC) No 2658/87 against the indicated Harmonised System code. A supplementary unit is applicable when it is defined consistently for all possible subheadings under the Harmonised System code mentioned in the due diligence statement.
70 The quantity must be expressed in kilograms of net mass, specifying a percentage estimate or deviation, and, when applicable, also in the supplementary unit set out in Annex I to Council Regulation (EEC) No 2658/87 against the indicated Harmonised System code. A supplementary unit is applicable when it is defined consistently for all possible subheadings under the Harmonised System code mentioned in the due diligence statement.
Amendment 239
Proposal for a regulation
Annex II – paragraph 1 – point 3
3.  Country of production and all plots of land of production, including geo-localisation coordinates, latitude and longitude. Where a product or commodity contains materials, ingredients or components produced in different plots of land, the geo-location coordinates of all different plots of land shall be included;
3.  Country of production and parts thereof and all geo-localisation coordinates, latitude and longitude, of all plots of lands as specified in Article 9 (1) point (d). Where a product or commodity contains materials, ingredients or components produced in different plots of lands or polygons, the geo-location coordinates of all different plots of lands or polygons shall be included;

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A9-0219/2022).


Conservation and enforcement measures applicable in the Regulatory Area of the Northwest Atlantic Fisheries Organisation (NAFO) ***I
PDF 121kWORD 50k
Resolution
Text
European Parliament legislative resolution of 13 September 2022 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/833 laying down conservation and enforcement measures applicable in the Regulatory Area of the Northwest Atlantic Fisheries Organisation (COM(2022)0051 – C9-0046/2022 – 2022/0035(COD))
P9_TA(2022)0312A9-0198/2022

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2022)0051),

–  having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9‑0046/2022),

–  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 24 March 2022(1),

–  having regard to the undertaking given by the Council representative by letter of 13 July 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Fisheries (A9-0198/2022),

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.

Position of the European Parliament adopted at first reading on 13 September 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2019/833 laying down conservation and enforcement measures applicable in the Regulatory Area of the Northwest Atlantic Fisheries Organisation

P9_TC1-COD(2022)0035


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/2037.)

(1)OJ C 290, 29.7.2022, p. 149.


Western and Central Pacific Fisheries Convention Area: conservation and management measures ***I
PDF 121kWORD 51k
Resolution
Text
European Parliament legislative resolution of 13 September 2022 on the proposal for a regulation of the European Parliament and of the Council laying down conservation and management measures applicable in the Western and Central Pacific Fisheries Convention Area and amending Council Regulation (EC) No 520/2007 (COM(2021)0198 – C9-0153/2021 – 2021/0103(COD))
P9_TA(2022)0313A9-0009/2022

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2021)0198),

–  having regard to Article 294(2) and Article 43(2) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0153/2021),

–  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 9 June 2021(1),

–  having regard to the provisional agreement approved by the committee responsible under Rule 74(4) of its Rules of Procedure and the undertaking given by the Council representative by letter of 30 June 2022 to approve Parliament’s position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

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

–  having regard to the report of the Committee on Fisheries (A9-0009/2022),

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.

Position of the European Parliament adopted at first reading on 13 September 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council laying down conservation and management measures applicable in the Western and Central Pacific Fisheries Convention Area and amending Council Regulation (EC) No 520/2007

P9_TC1-COD(2021)0103


(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/2056.)

(1) OJ C 341, 24.8.2021, p. 108.


The impact of COVID-19 closures of educational, cultural, youth and sports activities on children and young people in the EU
PDF 170kWORD 70k
European Parliament resolution of 13 September 2022 on the impact of COVID-19 closures of educational, cultural, youth and sports activities on children and young people in the EU (2022/2004(INI))
P9_TA(2022)0314A9-0216/2022

The European Parliament,

–  having regard to Articles 2, 3 and 5(3) of the Treaty on European Union,

–  having regard to Articles 165, 166 and 167 of the Treaty on the Functioning of the European Union,

–  having regard to Articles 14, 15 and 32 of the Charter of Fundamental Rights of the European Union,

–  having regard to the European Pillar of Social Rights, in particular principles 1, 3 and 4 thereof,

–  having regard to its resolution of 17 April 2020 on EU coordinated action to combat the COVID-19 pandemic and its consequences(1),

–  having regard to its resolution of 8 October 2020 on the Youth Guarantee(2),

–  having regard to its resolution of 10 February 2021 on the impact of COVID-19 on youth and on sport(3),

–  having regard to its resolution of 17 February 2022 on empowering European youth: post-pandemic employment and social recovery(4),

–  having regard to its resolution of 20 May 2021 on the right of information of the Parliament regarding the ongoing assessment of the national recovery and resilience plans(5),

–  having regard to the European Youth Event 2021 report entitled ‘Youth Ideas Report for the Conference on the Future of Europe’,

–  having regard to Decision (EU) 2021/2316 of the European Parliament and of the Council of 22 December 2021 on a European Year of Youth (2022)(6),

–  having regard to the proposal for a Council recommendation of 10 December 2021 on a European approach to micro-credentials for lifelong learning and employability (COM(2021)0770) and to the accompanying staff working document (SWD(2021)0367),

–  having regard to the news article of 7 April 2020 entitled ‘COVID-19: how can VET respond?’, published by the Commission’s Directorate-General for Employment, Social Affairs and Inclusion(7),

–  having regard to the Commission communication of 30 September 2020 entitled ‘Digital Education Action Plan 2021-2027: Resetting education and training for the digital age’ (COM(2020)0624),

–  having regard to the Erasmus+ and European Solidarity Corps Survey on the impact of COVID-19 on learning mobility(8),

–  having regard to the forthcoming Commission communication on long-term care and childhood education and care,

–  having regard to the study entitled ‘Education and youth in post-COVID-19 Europe – crisis effects and policy recommendations’, published by its Directorate-General for Internal Policies on 4 May 2021(9),

–  having regard to the study entitled ‘Youth in Europe: Effects of COVID-19 on their economic and social situation’, published by its Directorate-General for Internal Policies on 24 September 2021(10),

–  having regard to the study entitled ‘Cultural and creative sectors in post-COVID-19 Europe – crisis effects and policy recommendations’, published by its Directorate-General for Internal Policies on 18 February 2021(11),

–  having regard to the NESET Ad hoc report no. 3/2021 entitled ‘Distance learning from a student perspective’(12),

–  having regard to the NESET Ad hoc report no. 2/2021 entitled ‘The impact of COVID-19 on student learning outcomes across Europe: the challenges of distance education for all’(13),

–  having regard to the European Expert Network on Economics of Education (EENEE) and NESET analytical report entitled ‘The impact of COVID-19 on the education of disadvantaged children and the socio-economic consequences thereof’(14),

–  having regard to the Joint Research Centre technical report entitled ‘The likely impact of COVID-19 on education: Reflections based on the existing literature and recent international datasets’(15),

–  having regard to the European Youth Forum report of 17 June 2021 entitled ‘Beyond Lockdown: the “pandemic scar” on young people’(16),

–  having regard to the UNICEF report of 4 October 2021 entitled ‘The State of the World’s Children 2021: On My Mind: promoting, protecting and caring for children’s mental health’(17),

–  having regard to the OECD policy brief of 12 May 2021 entitled ‘Supporting young people’s mental health through the COVID-19 crisis’(18),

–  having regard to the Young Minds survey of February 2021 entitled ‘Coronavirus: Impact on young people with mental health needs’(19),

–  having regard to the Horizon 2020 project entitled ‘Prevention of child mental health problems in Southeastern Europe – Adapt, Optimise, Test, and Extend Parenting for Lifelong Health’(20),

–  having regard to the Mental Health Foundation Scotland report of September 2020 entitled ‘Impacts of lockdown on the mental health and well-being of children and young people’(21),

–  having regard to the European Foundation for the Improvement of Living and Working Conditions (Eurofound) research report of 9 November 2021 entitled ‘Impact of COVID-19 on young people in the EU’(22),

–  having regard to the YouMoveEurope campaign on the International Youth Work Trainers Guild petition ‘Responding to the Impact of COVID-19 on International Youth Work Mobility’(23),

–  having regard to its resolution of 23 November 2021 on EU sports policy: assessment and possible ways forward(24),

–  having regard to the UN Convention on the Rights of the Child, in particular Article 12 thereof,

–  having regard to the UN Convention on the Rights of the Child of 20 November 1989, in particular Article 30 thereof,

–  having regard to Council Recommendation (EU) 2021/1004 of 14 June 2021 establishing a European Child Guarantee(25),

–  having regard to its resolution of 8 July 2020 on the rights of persons with intellectual disabilities and their families in the COVID-19 crisis(26),

–  having regard to the European Youth Goals, in particular Goals 5, 9 and 11,

–  having regard to its resolution of 17 September 2020 on the cultural recovery of Europe(27),

–  having regard to its resolution of 22 October 2020 on the future of European education in the context of COVID-19(28),

–  having regard to its resolution of 25 March 2021 on shaping digital education policy(29),

–  having regard to its resolution of 20 October 2021 on the situation of artists and the cultural recovery in the EU(30),

–  having regard to the OECD project ‘Student Agency for 2030’,

–  having regard to Rule 54 of its Rules of Procedure,

–  having regard to the report of the Committee on Culture and Education (A9-0216/2022),

A.  whereas the closure of early childhood education and care provision facilities, schools, universities, spaces for youth welfare and youth work, as well as of extracurricular activities, cultural spaces and sports facilities, has denied children and young people the opportunity to participate in activities which are essential for their overall development, their learning progression, their intellectual, physical, emotional and mental health and well-being, and their social and professional inclusion;

B.  whereas children and young people are among the most vulnerable groups in our society and have been impacted by COVID-19-related closures during a crucial and critical period of their lives; whereas mental health is one of the preconditions for and foundations of a healthy society and democracy; whereas access to mental health services is therefore inseparable from other basic rights;

C.  whereas the cancellation of educational, cultural, youth and sports activities and events intensified the digital transition to such an extent that it abruptly changed daily routines, as well as the way in which children and young people interact and communicate with each other, without social or physical contacts; whereas the closure of schools, spaces for culture and sports facilities hosting such activities and events has reduced the levels of physical fitness in young people to such an extent that currently only one in four 11-year-olds carries out enough physical activity; whereas this has led to one in three children being overweight or obese, increasing the risk of factor for disability and greater morbidity(31);

D.  whereas education ranked among the most emotionally draining sectors during the COVID-19 pandemic(32) and research shows a clear connection between the mental health of teachers and that of students(33); whereas distance education has inherent limitations in the teaching of laboratory and art courses, as well as vocational and physical education; whereas distance education is in many cases pedagogically unsuitable, especially for younger students, who have a greater need for interpersonal contact with the teacher, and owing to the lack of opportunities for teachers to be adequately trained to use digital tools effectively in schools; whereas in most cases, distance learning did not take into account the needs of learners who receive education in regional or minority languages; whereas this approach can be considered discriminatory and creates distress, anxiety and a sense of insecurity in those learners;

E.  whereas having no fixed daily timetable which creates a reassuring ‘routine’, and with the custom of attending school for long periods having been lost in some Member States, now that the schools have opened once again, many students seem to be ‘detached’, uninterested in school life and are having difficulties in finding their pace, in concentrating, in feeling a sense of belonging and in sharing the goals of the school community;

F.  whereas the closure of cultural venues – which were the first to be closed and the last to be allowed to reopen – has denied young cultural creators and, in particular, young performers the opportunity to commence and develop their careers at this crucial early stage;

G.  whereas grassroots sports were severely affected by the negative consequences of the pandemic, with many of them being completely closed for a long time; whereas professional sports clubs, especially at local and regional level, are still expected to cope with serious challenges regarding their financial recovery in the longer term; whereas the permanent loss of grassroots sports would have a direct impact on young athletes, both in terms of their social development and of their potential future professional career in sports;

H.  whereas the overall state of young people’s mental health and well-being has significantly worsened during the pandemic, with problems related to mental health doubling in several Member States compared to pre-crisis levels(34), leading pundits to call this the ‘silent pandemic’ or the ‘pandemic scar’; whereas the pandemic has exposed the lack of support provided to young people experiencing issues connected to mental health; whereas marginalised groups, such as LGBTIQ+, racial and ethnic minorities or young people with special needs, have been subjected to a higher risk of developing a mental health disorder; whereas the real consequences of mental health issues for young people are often difficult to identify and, to date, are not yet fully visible;

I.  whereas the excessive pressure put on learners to over-perform, even from a young age, has put additional strain on learners’ mental health and well-being; whereas mental health difficulties carry a strong stigma in our societies, leading young people living with mental health issues also to be subjected to prejudice, social isolation, verbal abuse or bullying, and to experiencing learning settings as an unsafe environment in which it is difficult to seek help or treatment;

J.  whereas there are vast discrepancies between Member States’ specific situations, owing to the differing nature and duration of the measures put in place, as well as to differences in access to technology and digital tools, which accentuate rural-urban inequalities;

K.  whereas the forced shift to virtual learning has not only exacerbated already existing inequalities, but has also created new ones by leaving children from socially disadvantaged backgrounds behind as a result of cramped housing conditions, the lack of digital infrastructure or equipment and connectivity issues, increasing the risk of low learning outcomes and consequently of drop-out among learners with fewer opportunities;

L.  whereas the closure of learning institutions has led to a reduction in existing knowledge, a loss of the methodology to acquire new knowledge and an actual loss of learning; whereas these losses, which are likely to have a long-term negative impact on the future well-being of children and young people, are higher among learners from socio-economically disadvantaged households, who received less support with their studies during the pandemic;

M.  whereas it has been observed that 64 % of young people in the 18-34 age group were at risk of depression in spring 2021(35) and that suicide is the second leading cause of death among young people(36) as a result of stress, loneliness, isolation, depression, psychological distress, the lack of educational, employment or financial opportunities and the increase in youth unemployment, as well as of uncertainties among young people linked to wider social and life prospects;

N.  whereas significant regional gaps exist across the EU in access to mental health services, while access by patients from socially disadvantaged backgrounds, including children, is further limited by the constraints which exist in some Member States in relation to reimbursements of psychotherapy sessions from public health budgets; whereas there is significant need for a European approach regarding mental health for children and young people, with a particular focus on education and school and youth counselling;

O.  whereas the lockdown measures had a particularly negative impact on persons with disabilities or special needs; whereas any measures taken by Member States during exceptional circumstances should always respect their fundamental rights and ensure their equal and non-discriminatory access to health care, social services and education, as well as to youth, cultural and sports activities;

P.  whereas gender-related differences have an impact on how children and young people have been affected by the pandemic, with girls and young women suffering more from domestic violence, psychosomatic illnesses and mood disorders(37); whereas the gender pay gap deteriorated further during the pandemic, affecting women’s work-life balance and their financial dependence on their partners, relatives or friends; whereas the successive lockdowns increased the burden on parents and guardians, which exacerbated the risk of parental substance abuse and intra-familial violence affecting the mental health and well-being of the most vulnerable, as well as of children and young people;

Q.  whereas mental health problems at an early stage of personal development increase the likelihood of mental health issues occurring in adulthood, with far-reaching consequences as regards personal, social and professional development and quality of life; whereas children and young people are going through critical phases of their neurological development and are particularly sensitive to the large-scale use of digital tools for distance learning; whereas this intense digitalisation of education gives rise to questions regarding the impact of technology on learning issues;

R.  whereas closures have reduced the levels of physical fitness in young people to such an extent that currently only one in four 11-year-olds carries out enough physical activity;

S.  whereas 2022 is the European Year of Youth;

T.  whereas any EU mental health strategy aimed at children and young people must first and foremost provide them with opportunities to be heard and their input taken into account in the elaboration of inclusive responses; whereas a successful strategy must involve parents, families, friends, youth organisations and youth welfare services, youth workers, cultural institutions and sports clubs, in addition to schools and teachers, by providing them with appropriate training related to how to deal with mental health issues, in order to both establish a holistic approach and ensure that young people from socio-economically disadvantaged backgrounds and marginalised groups are reached;

U.  whereas scientific data suggests that levels of institutional trust among members of the younger generations have fallen; whereas this is caused by the stress and uncertainty linked to the pandemic itself but also by the limited effectiveness of Member States’ official communication channels in reaching the younger generation, as well as the increase in disinformation and fake news pertaining to the pandemic; whereas special attention needs to be devoted to regaining that trust, which can be achieved through age-appropriate participation, including by offering young people opportunities to take initiatives and decisions shaping the world they live in and promoting youth agency in order to empower young people to seek self-determination and develop resilience;

V.  whereas the pandemic has provided us with an opportunity to address long-standing mental health-related issues that had previously not been addressed in a holistic manner; whereas mental health has been included in the specific objectives of the EU4Health programme, contributing to building a European health union based on stronger, more accessible and resilient health systems standing ready to face up to possible future crises;

W.  whereas the war in Ukraine and its devastating human, food, energy and financial consequences, as well as other global threats, can result in uncertainties which are expected to have a further negative impact on the mental health and well-being of children and young people;

X.  whereas the war in Ukraine has led to millions of children and young people being displaced and experiencing extensive trauma;

1.  Draws attention to the role played by schools and early childhood education and care institutions, as well as non-formal and informal learning institutions, in providing young people and their families with the necessary material and psychological support, and calls on the Member States and regions to provide sufficient financial support to mainstream education institutions, in particular through significant investment in public education, and to recruit and retain highly qualified teachers and education personnel, in order to ensure that the pedagogical, psychological, physical, emotional, cognitive and/or social development of young people is increasingly promoted in a satisfactory way;

2.  Urges the Member States, in this context, to substantially increase public spending in education and training to above the EU average (5 % of GDP in 2020); underlines, in particular, the role played by teachers, educators and youth workers in contributing to the psychological support and development of children and young people; in this regard, stresses the need to recognise the importance of promoting the mental health literacy of teachers, education personnel, school administrators, social workers and youth workers, as well as of learners;

3.  Calls on the Member States and the Commission to break the silence surrounding mental health issues and eliminate the associated discriminative social stigma in a holistic approach; calls, therefore, on the Commission and the Member States to launch an EU-wide campaign to raise awareness of mental health in educational and vocational institutions in order to combat the existing stigma, to provide young people with access to mental health information and to create a clear and broader social understanding of mental health issues; invites the Member States to include psychological first aid and stigma-free mandatory mental health education in curricula, so that learners, teachers, professors, trainers and academic leaders are better prepared to respond to learners and young people who experience mental health issues, thereby ensuring equal promotion of citizens’ mental health and well-being across the EU; calls on the Member States to adapt the content of the curricula, to take all necessary measures to close the cognitive gaps created during distance learning and to prevent the possible increase in school failure and school drop-out; insists that Member States ensure access to inclusive and equitable quality education for every child in Europe;

4.  Stresses the importance of countering the phenomenon of under-reporting regarding mental health and well-being, as well as the under-representation of children and young people in mental health scientific research; calls, therefore, on the Commission to conduct research with a complete assessment of the long-term effects of all preventive measures related to the COVID-19 pandemic taken by the Member States on children and young people, in order to mitigate the effects of any future health crisis;

5.  Underlines the challenges involved in measuring mental health and well-being, and calls on the Commission and the Member States to develop a common holistic understanding of health and safety that includes overall physical, mental and social well-being, and requires comprehensive prevention and healing strategies, including the development of unbiased indicators to measure mental health and well-being, risk assessment tools and reporting systems, in consultation with teachers, learners, parents and experts and scientists with a relevant specialisation, and the integration of cultural, play and sporting activities, and promoting the development of creative and social skills;

6.  Underlines the need to sustainably and rapidly reconstruct and strengthen the structure of European youth work that has been weakened or even destroyed by the pandemic; emphasises that youth work itself needs to be recognised for what it is: a support tool that makes an important contribution to young people’s personal development, well-being and self-realisation; calls, therefore, on the Member States to implement concrete improvements in youth work in order to provide support to those who need it most;

7.  Calls for open youth work to be recognised throughout the EU as a central means of socialisation for young people and to consciously and increasingly create free spaces for young people, often for those of the same age, beyond the parental home and places of learning in formal education, which open up opportunities for them to organise themselves and participate in community initiatives;

8.  Calls, in this regard, on the Member States to improve and further develop the framework for health and safety in learning environments in order to provide learners, teachers, young people and professionals with the support of a sufficient number of qualified staff members, such as specialist psychologists or other mental health specialists, who can play a vital role not only for the individuals, but also for the overall school climate, in order to create a safe environment for children and young people in all types of education institutions, where learners can seek psychological help in the early stages of mental issues; calls on the Member States to provide special educational needs support staff who can contribute to making classrooms and social spaces a welcoming and attractive place in which to grow, learn, exchange views in an environment of trust, and discuss and overcome differences constructively; highlights the importance of low-threshold, semi-professional psychological support for learners; calls for the establishment of an active European network for exchanging best practices and methods to deal with such challenges;

9.  Acknowledges that giving young people a voice in decision-making, so that they can express their needs and participate in their implementation, is key to improving the effectiveness of policies and programmes; calls, therefore, on learning institutions to extend the participation and co-determination rights of students and young people in schools, universities, vocational training, the workplace and social institutions, and to involve young people, especially young women, in research and programme design in order to better understand and respond to their life experiences, priorities and perceptions, so as to ensure their engagement;

10.  Urges the Member States to promote cross-sectoral investments to tackle mental disorders among children and young people, and to build up national action plans ensuring their implementation at the regional and local level, accommodating the actual needs of children and young people, with special regard to the most disadvantaged groups; calls on the Commission and the Member States to support the work of youth organisations and the youth work organised in non-governmental organisations themselves more systematically and, above all, given their importance for non-formal and informal learning, also financially, and therefore to make their structures of cross-border exchange and cooperation more crisis-resistant in the long term;

11.  Underlines the vital importance of non-virtual interpersonal activities and relationships in daily life among children and young people for their overall well-being, which constitutes the basis of the process of socialisation and accelerates the experience of a sense of belonging, taking into account the important role of socialisation in education; therefore, calls on the Member States to take appropriate health and safety measures to ensure that in the event of future pandemics or other unprecedented situations, all learning environments, whether formal, informal or non-formal in nature, remain safely open;

12.  Encourages the Member States, in cases where special measures are absolutely necessary, to consult with health and safety professionals, schools, teachers, youth organisations and youth welfare services, as well as parents, in order to adequately take into account the needs of different age groups, vulnerable groups and young people with specific needs, mobility issues or other disabilities, as well as disadvantaged and marginalised groups, leaving no one behind, and not to apply a one-size-fits-all approach; underlines the importance of ensuring language continuity to enable learners who receive education in regional or minority languages to continue to do so in distance or blended learning settings; calls, as a result, on the Member States to take into account the different characteristics and needs of educational, cultural, youth and sports activities;

13.  Highlights the positive role that mentoring played in certain countries during the pandemic in assisting young people in solving issues, thereby promoting their mental health and providing an interpersonal connection that offered a sense of perspective as well as psychological support in times of isolation; invites the Commission to consider supporting and funding such mentoring programmes at European level in order to encourage their development in all Member States;

14.  Recognises that the COVID-19 crisis has exacerbated already existing inequalities in education by limiting opportunities for many of the most vulnerable children and young people, including those living in impoverished or in rural areas, girls, refugees and people with disabilities; calls for increased efforts to identify and support children, young people and families disproportionately affected by the pandemic, taking into account the cultural and contextual factors that influence them, in order to identify pre-pandemic gaps in mental health service provision and to better adapt public systems; urges the Member States to consider the impact of COVID-19 through a gender lens and to ensure the continuation of sexual and reproductive education in all circumstances;

15.  Calls on the Commission and the Member States to pay special attention to children and young people who are particularly vulnerable, such as LGBTQ+ youth, racialised children and young people, and those with pre-existing mental health needs;

16.  Highlights the important role that a healthy and balanced diet plays in the mental health of children and young people; insists, therefore, on the important social support that schools provide, such as balanced daily meals, which some children do not otherwise receive at home; calls on the Member States to implement Child Guarantee Recommendation 4 asking, among other things, for free access to at least one healthy meal each school day;

17.  Insists on the need to increase the funding and adequately promote the opportunities offered by programmes such as Erasmus+, Creative Europe and the European Solidarity Corps, to enhance mobility experiences which contribute to the development of useful and necessary social skills for the future personal and professional growth of the younger generations, and increase their accessibility for all; in this context, calls on the Commission and the Member States to promote vocational training and to make the programmes resilient to possible future mobility limitations, as well as to improve the systematic sharing of projects’ outcomes in order to increase their visibility, upscaling and long-term impact; calls on the Commission to increase the funding of these Union programmes in the next revision of the multiannual financial framework;

18.  Expresses its concern that the effects of the Recovery and Resilience Facility (RRF) on children and young people might be limited in many cases and may not produce results or structural reforms that would allow children and young people to access quality education or mitigate the negative impact of COVID-related closures of cultural venues and access to cultural creators on young performers in particular, who were denied the opportunity to commence and develop their careers at the crucial early stage; calls on the Commission and the Member States to ensure proper funding and fair contractual and working conditions for all young authors, performers, artists and all other cultural creators, workers and professionals working in the cultural and creative sectors, including on social media, who were adversely affected as a result of the pandemic, to step up their overall efforts to support emerging artists and cultural professionals, to promote youth and social entrepreneurship, and to stipulate this goal in a dedicated section on young artists in a European Status of the Artist; reiterates its recommendation that 10 % of national recovery and resilience plans go to education and 2 % to the cultural and creative sector; calls for an in-depth evaluation by the Commission of the projects and reforms related to education, young people and the cultural and creative sectors implemented by Member States from the RRF, and reiterates the need for more emphasis on these topics within the national reports drafted within the European Semester evaluation;

19.  Draws attention to the importance of mobility experiences and the exchange of good practices among teachers, educators, professors, trainers, volunteers and professionals in youth work and youth organisations, cultural creators and sports coaches in broadening their knowledge in youth outreach and strengthening the international and multilingual dimensions, particularly in view of the European Education Area to be achieved by 2025;

20.  Calls for a holistic understanding of health that includes overall physical, mental and social well-being and requires comprehensive prevention and healing strategies, including cultural and sporting activities, and promoting the development of creative and social skills;

21.  Emphasises the need to promote the design and provision of targeted, intergenerational services that combine the experience of older people with the courage of younger people in a mutually beneficial situation;

22.  Underlines the fundamental importance of culture for the development of the individual identity of children and young people, as well as for their education, including their understanding of society, and for their overall well-being;

23.  Highlights the urgent need to create an inclusive, creative, dynamic and healthy learning environment from an early age in order to reduce the risk of psychophysical disorders in adulthood; urges the Member States, in this context, to ensure the inclusion and upscaling of all forms of artistic expression, i.e. music, theatre, cinema, documentary, animation, the visual arts, dance and new experimental art forms, in school curricula and as extracurricular artistic and sports activities, thereby stimulating free expression and creativity, and allowing students to participate actively and explore their talents; underlines that art can be an ideal component for interdisciplinary projects and can promote critical thinking and therefore should not be limited to art classes;

24.  Urges the Member States and public authorities to develop sports infrastructure and to comprehensively increase the amount of physical education and extracurricular physical activities in schools, including activities addressed to children and young people with disabilities; underlines that sport, like art, can be a strong vehicle of inclusion for children at risk of exclusion; recalls that arts and sports in school curricula may strongly help combat global challenges for youth and education, including learning difficulties and learning disorders, as well as bullying, hate speech and the consumption of psychotropic substances;

25.  Calls on the Commission and the Member States to support and adequately fund small local cultural initiatives, sports clubs, leisure facilities, youth organisations and youth welfare institutions to carry out the leisure, non-formal and informal learning activities that play an essential role in the development and well-being of young people and their families, by providing material and psychological support resources, including for young people with fewer opportunities or facing discrimination; underlines the fact that in disadvantaged, rural and remote areas such activities constitute the only opportunity for children and young people to socialise, increase their sense of citizenship and maintain a good level of mental health;

26.  Calls for support for grassroots sports and extracurricular activities, as they have suffered disproportionately from the devastating consequences of the COVID-19 pandemic; underlines that amateur sports are the basis for sports at professional level and contribute to both personal development and well-being, as well as to the regional development of rural areas; underlines the importance of keeping open and supporting the recovery of professional sports clubs and sports organisations, as well as supporting athletes; calls on the Commission to support these clubs and organisations adequately, as they play a vital role in the well-being and socialisation of young people;

27.  Calls for more coordination at European level between Member States, regional authorities and local representatives of sports teams and clubs, cultural associations, youth and student organisations, educational and university bodies, social partners involved in education, and the private sector in order to strengthen dialogue and cooperation and create a dynamic, multi-level social network that can respond and adapt to future challenges;

28.  Calls on the Commission to take action to ensure that the EU as a whole becomes stronger and more self-reliant, leaving no one behind; points out that it must address the wide geographical, gender, social, age and other structural gaps aggravated by the lack of digital infrastructure, connectivity and digital tools across all of the Member States, particularly in rural, remote, island and mountainous areas, as well as in hotspots or other areas that are socio-economically disadvantaged; calls on the Commission to widen the scope and strengthen independent EU and EU-financed not-for-profit educational platforms which comply with EU data privacy standards, such as eTwinning, EPALE, Erasmus+ and the School Education Gateway, so that EU state schools, teachers, trainers and educators can be at the heart of the digital education process without depending on profit-generating platforms; in addition, draws attention to the need to take into account the possible needs of those areas in the event of future pandemics or any other unprecedented situations;

29.  Underlines that efforts should be undertaken to generalise digital literacy at all levels of society, enabling the proper use of digital tools and infrastructures; calls, therefore, on the Member States to include digital literacy in the curricula of all learning institutions and to provide the necessary training and equipment for teachers and educators; stresses that particular emphasis should be placed on those who are digitally excluded; draws attention to the difficult situation of learners from families with many children and of parents who are teachers by profession, for whom the obligation to work, teach and learn remotely involves a costly and often unaffordable outlay in order to purchase, from their modest private resources, further equipment in order to meet the requirements of learning and/or working remotely;

30.  Underlines that digital technologies harbour substantial potential for teachers, trainers, educators and learners in terms of accessible, open, social and personalised technologies that can bring about more inclusive learning pathways; believes that the smart use of digital technologies, driven by innovative teaching methods and which empower learners, can equip citizens with core competencies for life; points out, however, that a lack of supervision of the digital learning of young people, especially those in disadvantaged and remote environments, can lead to a higher risk of addiction and mental health disorders;

31.  Urges the Member States to invest in specific policies, also in the framework of the RRF, that respond to local needs in order (i) to close all existing gaps, including gender, economic, technological and social regional inequalities; (ii) to ensure that educational and vocational training institutions, youth organisations and structures, as well as learners and young people more generally, obtain sufficient financial support, with a special emphasis on the most vulnerable learners who are falling behind and need additional support in order to achieve the expected learning goals, and the schools serving high-poverty and high-minority populations; (iii) to make sure the necessary technologies, innovations, learning support facilities and tools, including digital tools, are in place to consolidate, further develop and deliver quality education and training, as well as informal and non-formal learning opportunities to all; and (iv) to support cultural initiatives bringing children and young people together in the framework of the cultural recovery of local communities;

32.  Highlights that pre-existing gender norms and expectations can be important factors adversely affecting mental and physical health, as well as education opportunities; points out that developing the capacities of educators through adequate resources and support is critical in order to better identify and address the gendered repercussions of education, culture and sports closures on the broader health and well-being of children and young people; calls on the Member States to promote resilient, equitable and gender-responsive education systems which ensure that gender-specific needs are met, such as comprehensive sexuality education and gender-based violence prevention and response;

33.  Reiterates the importance of investing in innovation and research in education, enabling the state education system to have access to a ‘culture of innovation’ across the EU and to ensure that high-quality learning materials, pedagogical approaches and tools are accessible and available free of charge to all; in this context, draws attention to the need for a financial framework that allows for the reimbursable purchase or rental of appropriate digital tools, including computer equipment and access to an efficient internet network;

34.  Highlights the need to speed up the digitalisation of cultural and heritage resources, as well as of audiovisual libraries, and to introduce discount schemes allowing universal access to cultural resources, including for marginalised people and peripheral schools which are unable to purchase subscriptions at concessionary rates;

35.  Highlights the need to monitor developments in, and the pedagogical, health and safety consequences of, technological and digital advances through cooperation and dialogue with young people directly, as well as with experts, educators, education social partners, and other representatives of civil society; points out the urgent need to review critically the possible dangers of digital advances and their unpredictable consequences, bearing in mind that their primary purpose is to serve people’s needs;

36.  Urges the Member States to promote science and research on young people’s mental health and to assess the long-term impact of closures, particularly of prolonged remote learning, isolation and uncertainty, on knowledge acquisition, neurological development and socio-emotional skills, and to develop targeted measures to support those most affected in order to combat and prevent long-term mental health problems; calls on the Commission and the Member States to systematically collect and compare research findings, experience and knowledge in dealing with mental health issues among young people in the EU; further calls on the Commission to facilitate the exchange of good practices and mutual learning between Member States on these matters;

37.  Calls on the Commission to raise awareness among young people of the benefits and risks associated with digital technology, ensuring not only their access to technological tools, but also their ability to use them safely and properly, so that they serve as valuable instruments for socialisation and democracy;

38.  Underlines that prolonged periods spent in the digital environment can have far-reaching mental health and safety impacts on children and young people, such as screen fatigue or internet addiction, and also exposure to online violence and harassment, as well as to fake news, which can lead not only to depression, anxiety and social exclusion, but also to suicides among young people; calls on the Commission to promote greater collaborative and systematic prevention efforts aimed at protecting young people from such harm;

39.  Calls on the Commission to designate a European Year of Mental Health and to develop a European plan for the protection of mental health in education, vocational training, and informal and non-formal learning; is of the opinion that any such plan should build on the findings of the Working Group of the European Education Area Strategic Framework and provide comprehensive guidelines, propose examples of good practice and create incentives for Member States to put in place dedicated actions and training modules, thereby equipping teachers, trainers, educators, youth workers and employers with the necessary skill set to recognise early signs of burnout, stress and psychological stress in learners, young people and young interns, or young people on vocational training, with a view to activating targeted prevention measures;

40.  Believes that the plan should promote free and regular psychological support for teachers, educators and childcare professionals, and should also devote special attention to marginalised and disadvantaged groups and persons with disabilities in order to take their specific needs into account and ensure that they have equal access to all activities and opportunities; underlines that the plan should also encourage the intensification of the links between educational institutions and cultural, youth and sports organisations to provide extracurricular activities rooted in the wider community, with the aim of reinforcing learners’ sense of belonging, promoting young people’s agency and increasing their social commitment;

41.  Calls on the Commission and the Member States to follow the recommendations of the Conference on the Future of Europe on minimising the impact of a serious crisis on young people and on their mental health, and also to take into account future generations in all their recommendations and proposals;

42.  Calls on the Commission to continue developing mitigating measures with regard to the negative consequences of COVID-19 closures on children and young people throughout 2023, and to make use of this year to propose a robust legacy of the European Year of Youth 2022 for the future;

43.  Instructs its President to forward this resolution to the Council and the Commission.

(1) OJ C 316, 6.8.2021, p. 2.
(2) OJ C 395, 29.9.2021, p. 101.
(3) OJ C 465, 17.11.2021, p. 82.
(4) Texts adopted, P9_TA(2022)0045.
(5) OJ C 15, 12.1.2022, p. 184.
(6) OJ L 462, 28.12.2021, p. 1.
(7) https://ec.europa.eu/social/vocational-skills-week/covid-19-how-can-vet-respond_en
(8) https://erasmus-plus.ec.europa.eu/sites/default/files/2021-09/coronavirus-mobility-impact-results-may2020_en.pdf
(9) Study – ‘Education and Youth in post-COVID-19 Europe – crisis effects and policy recommendations’, European Parliament, Directorate-General for Internal Policies, Policy Department B – Structural and Cohesion Policies, 4 May 2021.
(10) Study – ‘Youth in Europe: Effects of COVID-19 on their economic and social situation’, European Parliament, Directorate-General for Internal Policies, Policy Department A – Economic, Scientific and Quality of Life Policies, 24 September 2021.
(11) Study – ‘Cultural and creative sectors in post-COVID-19 Europe: Crisis effects and policy recommendations’, European Parliament, Directorate-General for Internal Policies, Policy Department B – Structural and Cohesion Policies, 18 February 2021.
(12) Diez-Palomar, J., Pulido, C. and Villarejo, B., ‘Distance learning from a student perspective’, NESET Ad hoc report no. 3/2021.
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(14) Koehler, C., Psacharopoulos, G. and Van der Graaf, L., ‘The impact of COVID-19 on the education of disadvantaged children and the socio-economic consequences thereof’, NESET-EENEE report, Publications Office of the European Union, Luxembourg, 2022.
(15) Di Pietro, G., Biagi, F., Costa, P., Karpiński, Z. and Mazza, J., ‘The likely impact of COVID-19 on education: Reflections based on the existing literature and recent international datasets’, Publications Office of the European Union, Luxembourg, 2020.
(16) Moxon, D., Bacaiso, C. and Şerban, A., ‘Beyond the pandemic: The impact of COVID-19 on young people in Europe, European Youth Forum, Brussels, 2022.
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(19) https://www.youngminds.org.uk/about-us/reports-and-impact/coronavirus-impact-on-young-people-with-mental-health-needs/#main-content
(20) https://cordis.europa.eu/project/id/779318/results
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(22) https://www.eurofound.europa.eu/publications/report/2021/impact-of-covid-19-on-young-people-in-the-eu
(23) https://you.wemove.eu/campaigns/responding-to-the-impact-of-covid-19-on-international-youth-work-mobility
(24) OJ C 224, 8.6.2022, p. 2.
(25) OJ L 223, 22.6.2021, p. 14.
(26) OJ C 371, 15.9.2021, p. 6.
(27) OJ C 385, 22.9.2021, p. 152.
(28) OJ C 404, 6.10.2021, p. 152.
(29) OJ C 494, 8.12.2021, p. 2.
(30) OJ C 184, 5.5.2022, p. 88.
(31) WHO European Regional Obesity Report 2022.
(32) https://www.eurofound.europa.eu/publications/report/2020/living-working-and-covid-19
(33) https://op.europa.eu/webpub/eac/education-and-training-monitor-2021/en/chapters/chapter1.html#ch1-1
(34) https://www.oecd-ilibrary.org/sites/1e1ecb53-en/1/2/2/index.html?itemId=/content/publication/1e1ecb53-en&_csp_=c628cf9bcf7362d2dc28c912508045f6&itemIGO=oecd&itemContentType=book
(35) https://www.statista.com/statistics/1287356/risk-of-depression-in-europe-2021-by-age
(36) UNICEF article ‘The Mental Health Burden Affecting Europe’s Children’ (4 October 2021).
(37) European Parliament Flash Eurobarometer: Women in times of COVID-19.

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