Recently, the European Union implemented new regulations, specifically the Regulation on Deforestation Free Products (EU Regulation 2023/1115; “Regulation”). This new legislation imposes stringent due diligence obligations aiming to halt deforestation and promote global biodiversity. It’s no understatement to say the impact of these new regulations will be widespread amongst corporations and law firms alike. Further clarification and understanding of these new requirements are crucial in this transitional period.
Notably, the Regulation is prohibiting the placing or making available of commodities and products made subject to deforestation. In effect, it places a severe curb on products linked to deforestation, making it illegal to market these within the EU region. Furthermore, the rules introduce strict requirements for marketing, regulatory control, and oversight powers.
But the question on many corporate and legal professionals’ minds is whether this is merely more of the same due diligence obligations or something new. The Regulation demands comprehensive due diligence processes beyond current practices, and it’s essential to understand these new demands for efficient business operation and legal compliance.
Situations like these remind us that staying informed on current legal developments is not just good business practice, but a corporate necessity in today’s evolving legal landscapes. So, for a more detailed legal analysis for your needs, do delve into the official publication of the Regulation on Deforestation Free Products. But for a high-level overview, this recent article from Hogan Lovells provides much-needed insight into the topic.
These regulations are certainly piquing the interest of legal professionals across the globe, as they bring to light the ever-rising importance of corporate environmental responsibility and disclosure.
A link for further reading: EU Regulation on Deforestation Free Products.