The EU’s Deforestation Regulation is about to go horribly wrong, which is a shame. It’s set to go into effect at the end of this year, on December 30, 2024, so the European Union lawmakers who supported it can still go back and make important changes, or at least they can delay putting the new rules into effect until they can do more consultations and find ways to make up for the bad effects.
If they don’t do one of those things right away, poor farmers in Malaysia and people in Europe who are already having a hard time with the cost of living will suffer.
The world economy is already struggling because of high inflation, the war in Ukraine, problems with supply chains, skyrocketing commodity prices, and other problems. It doesn’t make sense to attack some of the world’s poorest farmers just so European shoppers and diners can feel better about themselves and their impact on the planet.
However, that probably didn’t enter the minds of all the leaders in the European Union who backed these new rules with all their might in record time. The people in Brussels and Strasbourg who run the lives of the EU’s 27 member countries don’t even have to answer to voters in Europe, let alone farmers in Malaysia. To put it simply, they probably won’t care if small-scale farmers in Malaysia fail.
That is, without a doubt, a very high price to pay for eco-friendly show-off. The EU should keep in mind where it stands in the wide world. It’s not even the most important or only land in the world. Putting up walls and cutting off contact with the outside world is very bad for your health.
One of the worst things about the European Union is that it is likely to make the cost of living problem worse. The EU says it will look out for the interests of ordinary Europeans. According to the new study, Europe’s policy will raise grocery bills by a huge $1.5 billion. This will hurt the poor the most, since they spend the most of their income on food.
People in other countries will also have to follow these strict new rules. Also, they will have an effect on millions of the world’s poorest farmers who work in places like Malaysia to make goods like sustainable palm oil that are sent to Europe. The EU’s Deforestation Regulation would not make sense even if we agreed that putting these farmers out of business was a fair price to pay to stop a lot of trees from being cut down. That’s because stopping deforestation isn’t as easy as putting too much red tape on goods you don’t want, which is what the European Union does.
Palm oil is very common and can be found in about half of the everyday items and food staples you can find in stores. This includes everything from toothpaste and makeup to pizza bases and biscuit bases. A lot of different types of goods will be touched by these stupid new rules, which add extra costs to supply chains without considering who will pay those costs. According to a new report from Global Data, the EUDR could cost a huge $1.5 billion for palm oil, rubber, and products made from them.
The EUDR works by making sure that products like palm oil, cocoa, coffee, beef, rubber, and wood follow strict rules that are meant to stop them from cutting down trees in their supply lines. It is a bold and broad piece of law that will be hard for businesses and their suppliers to follow, and it will cost them a lot of money to do so.
Companies will have to spend a lot more money to find out where all of their items come from in order to show that they did not cause trees to be cut down. That will cost a lot, and businesses are likely to pass those costs on to their customers, who are usually poor farmers trying to feed their families, or to the farmers who supply their food. It urgently needs a rethink so it must be delayed.