Attendees at ethical palm oil roundtable flag slow rollout of EUDR’s digital compliance system | News | Eco-Business

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compliance system </h1> </div> <div class="eb-article__standfirst-wrapper"> <h2 class="eb-article__standfirst">Growers and traceability platforms at the Roundtable for Sustainable Palm Oil say the compliance portal for EU’s deforestation law – meant to kick in next month – only opened for registration last week and is not fully live yet.</h2> </div> <div class="eb-article__media"> <figure class="eb-article__featured-image"> <img src="https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&fit=crop&ixlib=django-1.2.0&q=85&width=320" alt="Sumatra deforestation satellite image" srcset="https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&dpr=2&fit=crop&ixlib=django-1.2.0&q=45&width=320 640w, https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&fit=crop&ixlib=django-1.2.0&q=85&width=700 700w, https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&dpr=2&fit=crop&ixlib=django-1.2.0&q=45&width=480 960w, https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&dpr=2&fit=crop&ixlib=django-1.2.0&q=45&width=700 1400w, https://eco-business.imgix.net/ebmedia/fileuploads/Sumatra_Region_Indonesia_Deforestation_Satellite_Imagery.jpg?ar=16%3A10&auto=format&dpr=2&fit=crop&ixlib=django-1.2.0&q=45&width=1100 2200w" sizes="(min-width: 1300px) 1100px, (min-width: 740px) 700px, 100vw"> <figcaption id="eb-article-featured-image-caption" class="eb-article__featured-image__caption"> Satellite imagery of deforestation in the Sumatra region of Indonesia. A recent <a href="https://www.ran.org/press-releases/ran-unveils-alarming-findings-on-illegal-deforestation-in-indonesias-rawa-singkil-wildlife-reserve-using-unprecedented-satellite-imagery/">report</a> found that traders with Roundtable for Sustainable Palm Oil (RSPO)-certified operations, including Royal Golden Eagles's Apical, Musim Mas and Permata Hijau, are sourcing palm oil illegally from the world's "orangutan capital". 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<button class="eb-share__shortlink-copy"> <span class="eb-normalise-visually-hidden">Copy</span> <svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" viewBox="0 0 16 16" class="eb-icon eb-icon-search "><path fill-rule="evenodd" d="M5.75 1a.75.75 0 00-.75.75v3c0 .414.336.75.75.75h4.5a.75.75 0 00.75-.75v-3a.75.75 0 00-.75-.75h-4.5zm.75 3V2.5h3V4h-3zm-2.874-.467a.75.75 0 00-.752-1.298A1.75 1.75 0 002 3.75v9.5c0 .966.784 1.75 1.75 1.75h8.5A1.75 1.75 0 0014 13.25v-9.5a1.75 1.75 0 00-.874-1.515.75.75 0 10-.752 1.298.25.25 0 01.126.217v9.5a.25.25 0 01-.25.25h-8.5a.25.25 0 01-.25-.25v-9.5a.25.25 0 01.126-.217z"/></svg> </button> </div> </ul> </div> </div> <div class="eb-article__meta"> <div class="eb-article__byline"> <div class="eb-article__byline__author"> <div class="eb-article__byline__author-name"> By <a class="author-link" href="/about/profile/45912/">Gabrielle See</a> </div> </div> <div class="eb-article__meta__time"> 4 minute read <span class="eb-article__meta__divider"></span> <time class="eb-article__byline__publish-date" datetime="Nov. 14, 2024, 12:48 p.m.">Nov. 14, 2024</time> </div> </div> </div> <div class="eb-article__body"> <section class="eb-article__body-content"> <div class="subscriber_wall__lede"> <p><span style="font-weight: 400;">Ahead of the European Parliament voting on the proposal to delay its landmark anti-deforestation law by a year today, attendees at the Roundtable for Sustainable Palm Oil (RSPO) bemoaned the slow rollout of the European Union (EU)’s digital compliance portal.</span></p> <div class="subscriber_wall__second-paragraph-overlay"></div> </div> <div class="subscriber_wall" id="js-subscriberWall"> <div class="subscriber_wall__login"> Already subscribed? <a href="/accounts/login/?next=/news/attendees-at-ethical-palm-oil-roundtable-flag-slow-rollout-of-eudrs-digital-compliance-system/&sw-login=true">Sign in</a> </div> <div class="subscriber_wall__subscribe"> <h3 class="subscriber_wall__subscribe-title">To continue reading, subscribe to Eco‑Business.</h3> <h4 class="subscriber_wall__subscribe-sub-title">There's something for everyone. We offer a range of subscription plans.</h4> <div class="subscriber_wall__cta"> <a class="eb-button eb-button--large eb-button--primary" href="/accounts/signup-options/?prev=/news/attendees-at-ethical-palm-oil-roundtable-flag-slow-rollout-of-eudrs-digital-compliance-system/&sw-signup=true">Subscribe now → </a> </div> <ul class="subscriber_wall__feature_list"> <li class="subscriber_wall__feature_list_item">Access our stories and receive our Insights Weekly newsletter with the free EB Member plan.</li> <li class="subscriber_wall__feature_list_item">Unlock unlimited access to our content and archive with EB Circle.</li> <li class="subscriber_wall__feature_list_item">Publish your content with EB Premium.</li> </ul> </div> </div> <div class="subscriber-wall"><p><span style="font-weight: 400;">On the sidelines of the annual roundtable conference held in Bangkok, growers and traceability platforms expressed frustration that registration for the </span><a href="https://www.eco-business.com/tags/european-union-deforestation-regulation/"><span style="font-weight: 400;">European Union Deforestation Regulation</span></a><span style="font-weight: 400;"> (EUDR)’s portal, known as the Traces system, only opened last week – six weeks before the law was meant to take effect. </span></p><p><span style="font-weight: 400;">While industry lobbying from major commodity-producing countries, like Indonesia and Malaysia, has been blamed for the proposed EUDR delay, some have pointed to the EU’s lag in providing clear guidance for using the Traces system.</span></p><p><span style="font-weight: 400;">“It’s a shitshow,” said one delegate who handles the communications for multiple palm oil growers and distributors. A senior executive of the largest exporters of RSPO-certified palm oil said that though his company can start registering, it cannot access the platform until 1 December.</span></p><p><span style="font-weight: 400;">“If you don’t use a solution that’s able to submit your due diligence statement for you and want to do it manually, it can be a huge problem because someone has to set up your processes. In no scenario is it good that you have so little time to test it,” said Andreas Naujoks of LiveEO, a Berlin-based startup using satellite and drone data to help firms comply with the regulation.</span></p><p><span style="font-weight: 400;">But a bigger problem, Naujoks said, is that most of the available data sets on forest maps are very inaccurate, meaning that even if the areas where products originate from get mapped out, deforestation could be wrongly flagged and lead to the exclusion of a supplier or non-compliance, which are both costly.</span></p><p><span style="font-weight: 400;">“Imagine if you have a rubber plantation or a palm oil plantation, you cut back the trees at the end of a cycle and you replant them. But even though you had agriculture before and afterwards, it shows up as deforestation,” said Naujoks, referencing the EU’s definition of deforestation, which looks at the conversion of forests to agricultural land.</span></p><p>This differs from the RSPO’s definition after its new standards passed on Wednesday, which environmental groups like Rainforest Action Network have denounced as “flawed” due to the <a href="https://www.eco-business.com/news/new-rspo-rules-for-sustainable-palm-oil-certification-raises-concern-over-deforestation-and-human-rights/">dropping of its reference to the no deforestation standard under the High Carbon Stock Approach toolkit</a>.</p><p>There are also <a href="https://www.wwf.eu/?15713941/EPP-swings-axe-to-worlds-forests-turning-EU-Deforestation-Law-into-dead-tree">concerns</a> now that the EUDR could be weakened from within, on the back of proposed further amendments by the European People’s Party last week, including calls for a two-year delay, the exclusion of large traders from nearly all obligations and the introduction a new category of “no risk” countries.</p><p><span style="font-weight: 400;">When it was first announced, the EUDR’s high penalties for non-compliance – up to 4 per cent of a company’s annual turnover – placed pressure on large exporters of commodities like palm oil, natural rubber and timber, to invest in weeding out deforestation from their supply chains.</span></p><p><span style="font-weight: 400;">Many supply chain management platforms have therefore introduced new offerings in the past two years to meet the demand from companies looking to be EUDR compliant.</span></p><p><span style="font-weight: 400;">The regulation requires producers to submit satellite data about the origins of goods entering the EU market to prove that they were not grown on land deforested after December 2020 or in illegal areas, which can potentially be retrieved from existing platforms that businesses are using.</span></p><p><span style="font-weight: 400;">Gerald Tan, chief executive officer of Agridence, a Singapore-based agri-commodity traceability platform – which has been tapped to build RSPO’s new digital compliance system Prisma – told Eco-Business that the EU has been “a bit silent” on its rollout plan and there remains a lack of guidance on how to use Traces, including the limits to the amount of data that can be uploaded and the number of geospatial data sets required.</span></p><p><span style="font-weight: 400;">Tan’s team was invited to test the Traces system out in January, where they flagged that there was no application programming interface (API) to automate the syncing of data across existing platforms, like Agridence.</span></p><p><span style="font-weight: 400;">“Originally, there was no API, so there was a big push back. To give credit to the EU, they actually sped up the process of opening an API connection so we can push the information onto Traces, which shows they are listening to industry feedback,” he said.</span></p><p><span style="font-weight: 400;">The system currently fails to provide reasons for why certain data gets rejected and what needs to be corrected, which platforms like Agridence provide for their clients, he added. A key misunderstanding, Tan said, is that if a firm’s data gets accepted by Traces, it is EUDR compliant.</span></p><p><span style="font-weight: 400;">“All it means is that the data format is compliant, not that your product is compliant,” he said.</span></p><p><span style="font-weight: 400;">Under the EUDR, records of firms’ due diligence activities must be kept on the system for at least five years for regulators to audit any commodities exported to the EU. “High-risk countries” – which has not been clearly defined – are subjected to enhanced scrutiny, where 9 per cent of operations will be subjected to random inspections, compared to 3 per cent in “standard-risk countries”.</span></p><p><span style="font-weight: 400;">“The implementation guidance was not clear enough until a week ago, when they released the new instructions on how to use the system. They have training sessions scheduled now until the end of the year, but they may have left it a little bit too late,” said Tan.</span></p><p><em data-stringify-type="italic">Eco-Business’ access to the Roundtable Conference on Sustainable Palm Oil 2024, as well as the sponsored trip to Bangkok was facilitated by RSPO.</em></p></div> </section> <div class="eb-article__sub-meta"><div class="eb-article__meta-categories"><h3 class="eb-container__header__title"><span class="eb-container__title__text">Related to this story</span></h3><h5 class="eb-article__meta-categories__title">Topics</h5><ul class="eb-article__meta-categories__list"><li class="eb-article__meta-categories__list-item"><a href="/category/food-agriculture/" class="eb-article__meta-categories__link">Food & Agriculture</a></li></ul><h5 class="eb-article__meta-categories__title">Regions</h5><ul class="eb-article__meta-categories__list"><li class="eb-article__meta-categories__list-item"><a href="/region/asia-pacific/" class="eb-article__meta-categories__link">Asia Pacific</a></li><li class="eb-article__meta-categories__list-item"><a href="/region/europe/" class="eb-article__meta-categories__link">Europe</a></li><li class="eb-article__meta-categories__list-item"><a href="/region/southeast-asia/" class="eb-article__meta-categories__link">Southeast Asia</a></li></ul><h5 class="eb-article__meta-categories__title">Tags</h5><ul class="eb-article__meta-categories__list"><li class="eb-article__meta-categories__list-item"><a href="/tags/audit/" class="eb-article__meta-categories__link">audit</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/deforestation/" class="eb-article__meta-categories__link">deforestation</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/forestry/" class="eb-article__meta-categories__link">forests</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/palm-oil/" class="eb-article__meta-categories__link">palm oil</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/regulation/" class="eb-article__meta-categories__link">regulation</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/supply-chain/" class="eb-article__meta-categories__link">supply chain</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/timber/" class="eb-article__meta-categories__link">timber</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/rubber/" class="eb-article__meta-categories__link">rubber</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/agribusiness/" class="eb-article__meta-categories__link">agribusiness</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/agriculture/" class="eb-article__meta-categories__link">agriculture</a></li><li class="eb-article__meta-categories__list-item"><a href="/tags/european-union-deforestation-regulation/" class="eb-article__meta-categories__link">European Union Deforestation Regulation</a></li></ul><h5 class="eb-article__meta-categories__title">SDGs</h5><ul class="eb-article__meta-categories__list"><li class="eb-article__meta-categories__list-item"><a href="/sustainable-development-goals/responsible-consumption-and-production/" class="eb-article__meta-categories__link">12. Consumption</a></li><li class="eb-article__meta-categories__list-item"><a href="/sustainable-development-goals/peace-justice-and-strong-institutions/" class="eb-article__meta-categories__link">16. Peace</a></li><li class="eb-article__meta-categories__list-item"><a href="/sustainable-development-goals/partnerships-goals/" class="eb-article__meta-categories__link">17. 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Attendees at ethical palm oil roundtable flag slow rollout of EUDR’s digital compliance system | News | Eco-Business | Asia Pacific