EU Deforestation Regulation
A ban on placing on the EU market products from land deforested after 2020, backed by an obligation to geolocate the plots of origin.
No plot coordinates, no clearance. Regulation (EU) 2023/1115 of May 31, 2023 bars placing on the EU market, or exporting from it, cattle, cocoa, coffee, oil palm, rubber, soy, wood and their derivatives where they come from land deforested or degraded after December 31, 2020. Voluntary commitments already targeted these supply chains; the regulation adds the burden of proof. The operator files a due diligence statement with the geolocation of the plots, and a supply chain claim becomes data that a satellite image can contradict. Legal risk moves to the European importer, who answers for what distant producers tell it. Two exposures follow for insurers: the liability and defense costs of an importer that passed on wrong coordinates in good faith, and business interruption when customs holds a shipment that complies with the sales contract but not with the regulation.
Regulation (EU) 2023/1115 of May 31, 2023, on making deforestation-linked products available on the Union market, requires a due diligence statement carrying the geolocation coordinates of the plots. Its application was deferred to the end of 2025 for large companies.
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