Study: the Czech Republic contributes to deforestation through consumption

The Czech Republic is likely to have problems with the application of the new EU Deforestation Products Directive (EUDR), which will start to apply to large companies at the end of this year. Although the area of forest cover in our country has increased slightly in recent years, we are contributing to global deforestation through international trade and especially through domestic consumption. The new data in the SYRI study on the alleged non-participation of the Czech Republic in deforestation is thus easily refutable. The authors of the study, Nicolás Blampied and Mazlum Karatas, point this out.

Reducing global deforestation is a priority for the European Union. It is the new EUDR that aims to reduce deforestation associated with agricultural activities. The Czech Republic was one of the countries that delayed the regulation. "The argument that the Czech Republic does not play a role in deforestation because its forest cover has increased slightly in recent decades obscures the country's real role in global deforestation through international trade," said Blampied, who works at Masaryk University in addition to SYRI.

According to the researchers, what matters is not so much in which particular country deforestation occurs, but how individual economies influence global deforestation through their consumption and trade links. "The Czech Republic contributes to deforestation precisely through its consumption. Yet after the covid-19 pandemic, the situation has worsened and most European economies, including the Czech Republic, have increased their production and consumption linked to deforestation," Blampied said.

Economists say action is needed immediately to mitigate the impact on small and medium-sized enterprises in the timber industry, publishing houses and retail chains. The EUDR was adopted on 31 May 2023, but has not entered into force yet. Companies will have to ensure and demonstrate that products are not causing deforestation, are produced in accordance with the legislation of the country of production and have the necessary due diligence declarations before placing selected products and commodities on the EU market or before export. The Regulation thus imposes new requirements on companies exporting outside the EU, for example, wood, rubber, cattle, cocoa, coffee, soya and oil palm, or products made using them, such as tyres, furniture, chocolate, leather, pipes, belts or pulp. Commodities affected by the regulation also include paper and therefore books, newspapers, leaflets or paper packaging.

SYRI researchers say the state should set up a specialised unit within the Ministry of Agriculture to monitor developments in relation to EUDR. They also recommend actively seeking clear and detailed implementation guidelines from the European Commission, improving communication with SMEs in at-risk sectors, assessing the economic impact on affected sectors, and considering targeted financial support or temporary exemptions to help firms cover the costs of the transition period.

Link to the study: https://1url.cz/jJBNj