MEPs back holding banks accountable in stronger EU anti-deforestation law

Brussels, July 12 – MEPs in the European Parliament’s Environment Committee today voted to improve the EU’s draft anti-deforestation law, passing measures that would oblige banks to conduct due diligence to prevent the financing of deforestation, boost protections for indigenous communities, and add rubber and leather to the list of imported products that would be screened for deforestation links.

Reacting to the vote, Giulia Bondi, Senior EU Forests Campaigner at Global Witness said:

“If the package that was agreed today ends up being included in the final law, the world’s remaining forests and the indigenous communities who protect them would be in a much safer place. It’s now up to the rest of the European Parliament to back this proposal to protect forests and indigenous communities, end EU banks’ complicity in deforestation and make sure imports of rubber and leather are deforestation-free.”

Global Witness revealed in June that rubber is the European import that poses the biggest threat to West and Central Africa’s tropical forests. Rubber appeared in early Commission drafts of the law but was removed after tyre industry lobbying.

Last year, we showed how EU-based financial institutions struck €30.6 billion worth of deals with 20 agribusiness companies accused of deforestation between 2016-2020.

The vote comes weeks after national environment ministers failed to strengthen the law when agreeing their position.

MEPs will use the package agreed today as a basis for the final European Parliament position, which will be voted on in plenary in September.

Contacts

Notes to editor:

Environment Committee MEPs voted to:

Extend the list of commodities and derived products to be covered by the anti-deforestation law, including rubber, leather, additional palm-oil derivates and maize
Uphold internationally recognised human rights, in particular indigenous peoples' rights and their free, prior and informed consent (FPIC) and include definitions for environmental and human rights defenders
Extend the application of the law to ‘other wooded land’ and improve the definition of forest degradation
Include EU-based financial institutions in the law requiring them to conduct due diligence to ensure their financing does not contribute to deforestation
Keep the country risks criteria but dilute the simplified due diligence option, therefore tightening the level of checks for products coming from low-risk countries
Increase the number of enforcement checks on operators
Close possibilities for certification or other industry schemes to be used for the risk assessment step of the due diligence process

MEPs back holding banks accountable in stronger EU anti-deforestation law

Related to Forests

EU Parliament “takes a chainsaw to anti-deforestation law”

"Era of human extinction": Hope and frustration at COP16 nature crisis summit

CBD COP16 events: Putting people at the center of biodiversity protection

Contacts

Notes to editor: