The EU Regulation on Deforestation-free products
We played a role in influencing the environmental dimensions of the EU Regulation on Deforestation-free products. Our work was focused on the inclusion of rubber as a deforestation-linked commodity. We also enhanced the understanding of the trade-related implications of these new laws in countries such as Indonesia, Cameroon and Brazil.
European Union Regulation on Deforestation-free products and Cocoa development in Cameroon
Cameroon's agro-climatic conditions make it an ideal production area for cocoa, which flourishes in eight of the country's ten regions. This explains its importance in the country's agricultural, economic, and social environment, with a contribution of 1% to the country's GDP in 2021. However, cocoa production is known to contribute to deforestation, both in Cameroon and in other cocoa-producing countries. With the protection of the environment and forests a major concern worldwide, the European Union (EU) has introduced a new Regulation on Deforestation-free products (EUDR) for various deforestation-related commodities, including Cocoa. The Regulation aims to prevent commodities grown on land deforested or subject to forest degradation after December 31, 2020 being placed onto the EU market, made available or being exported them from the EU.
The Cameroon team carried out a study to evaluate the implications of the EUDR for the Cocoa sector in Cameroon. We analysed the opportunity cost in terms of cocoa production that would meet the deforestation-free conditions that operators under the EUDR will have to meet. We also analysed producers' perceptions of this Regulation.
Among the results, these stand out:
(i) Cameroon's production targets of 1,200,000 tonnes of beans by 2030, as set out in the National Development Strategy for 2030 (NDS30), appear unrealistic,
(ii) The models show that significant amounts of cocoa production in Cameroon fail to meet the deforestation-free conditions of the EUDR, ranging from 75,000 tonnes to 124,000 tonnes, and
(iii) Models also highlight the relatively low level of interest among producers in ensuring their cocoa meets EUDR deforestation-free conditions, with only 42.21% of the producers surveyed being inclined to achieve this.
Free-Trade-Agreement (FTA) Risk Assessment: We provided input to free-trade-agreement (FTA) risk assessment, which aims to provide a tool kit to help those developing trade agreements between the EU and nations around the world. Our team in York has continued to support Belgium and France, including the French government’s ‘National Strategy to Combat Imported Deforestation’ data platform, enhancing the capacity of EU member states to develop Free Trade Agreements that include robust environmental and social metrics.
Our input to other Free Trade Agreements: We supported China with incorporating biodiversity considerations into Free Trade Agreements (FTA) with New Zealand, Australia and Switzerland. We also helped them with ongoing negotiations in Latin America and West Asia. By advising Chinese officials, we emphasized preserving natural habitats and species diversity in these agreements. This effort strengthened the biodiversity clauses in China's FTAs and set a global precedent for including environmental considerations in trade policies.
African Continental Free Trade Area (AfCFTA) and Environmental Considerations
The African Continental Free Trade Area (AfCFTA) is a landmark agreement aiming to create a single continental market for goods and services, with free movement of businesspersons and investments across Africa. This initiative is expected to significantly boost trade and promote economic growth. However, integrating environmental considerations into trade policies is crucial to ensuring sustainable development.
Utilizing the extensive research produced through the TRADE Hub, the United Nations Environment Programme (UNEP) Trade and Environment team provided evidence-based insights and recommendations on environmental and biodiversity aspects considered in the AfCFTA protocols. This knowledge was crucial in emphasizing the link between trade policies and environmental sustainability. The contributions made by UNEP were well received by participants, including government representatives, policymakers and other stakeholders involved in the AfCFTA. There was widespread acknowledgment of the relevance and importance of connecting trade and environment agendas.
UNEP's engagement in the AfCFTA negotiations exemplifies the importance of incorporating environmental and biodiversity considerations into trade agreements. The positive reception of UNEP's contributions underscores the growing recognition of the need for sustainable trade practices.
By linking trade and environment agendas, UNEP has helped pave the way for more holistic and sustainable economic development across Africa.
Development of the UK Overseas Impact Indicator
We worked with the UK government to integrate environmental and social considerations into trade agreements. This has ensured that UK trade practices support global sustainability and address issues like biodiversity loss and deforestation.
In collaboration with the Stockholm Environment Institute (SEI) and the UK Joint Nature Conservation Committee (JNCC), we developed the UK Overseas Impact Indicator to monitor biodiversity and deforestation risks linked to UK trade. The aim of this work was to provide a means to assess the environmental impacts from UK consumption and production activities abroad. We used data on over 160 agricultural commodities from 240 countries, highlighting high-risk supply chains. A notable impact of our work was the adoption by the UK government of the indicator as a part of its official statistical framework. This indicator was included as a ‘component’ indicator for Target 16 in the monitoring framework for the Kunming-Montreal Global Biodiversity Framework, so it can be used by all countries to monitor environmental impacts from consumption.
Our collaboration with SEI continued in a development of a dashboard to estimate global environmental impacts of UK trade activities. This visual tool aggregates data on production and environmental impacts. The data included tracks deforestation, biodiversity loss, and ecological risks for various commodities.
Our work with the UK Government exemplifies successful integration of environmental and social considerations into trade policies, promoting sustainable and responsible global trade practices.