World: Cocoa traders say EU deforestation law set to fail

Published 2024년 9월 19일

Tridge summary

Major cocoa traders, represented by the European Cocoa Association (ECA), have appealed to the European Union (EU) for a delay in a new regulation aimed at combating deforestation, citing a lack of clarity and uncertainty around the regulation's key elements. The EU Deforestation Regulation (EUDR), set to begin on Dec 30, has faced opposition from Germany, Brazil, Indonesia, and Malaysia, among other nations, due to concerns about its potential impact on global commodities markets. The ECA is advocating for a six-month extension of the transition period, arguing that the regulation's complexities and uncertainties could negatively affect the cocoa supply chain.

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Original content

(Sept 19): Major cocoa traders, amid mounting criticism, have asked the European Union (EU) to delay a new environmental regulation aimed at tackling deforestation. The absence of clarity of key elements in the EU Deforestation Regulation (EUDR) has made compliance efforts highly uncertain, the European Cocoa Association (ECA) said in a letter to European Commission president Ursula von der Leyen. The trade group, which represents top traders, including Barry Callebaut and Cargill Inc, called for an extension of the transition period for at least six months after several milestones, including the publication of formal guidance, have been reached. The letter comes barely a week after German Chancellor Olaf Scholz pushed back against the regulation, adding to objections voiced by some nations, including Brazil, Indonesia and Malaysia, which argue that it will have a negative impact across global commodities markets. “Given these shortcomings, the implementation of the EUDR is ...

Source: Theedgemarkets