POINTERS: EU Corporate Due Diligence: Potential Impact on Palm Oil in the EU Market

By: Jelmen Haaze

Secretary General of the Belgian Alliance for Sustainable Palm Oil. He used to co-chair the European Sustainable Palm Oil Advocacy Group which brings together five sectors around EU Regulatory issues relevant to the palm oil industry.

As EU Policy Manager he was responsible for the coordination and representation of the margarine sector where he coordinated the industry position for modernisation of legislation and follow up of dietary guidelines (on Belgian Level) and for sustainability and contaminants. Achievements include the development of a sector sustainability guide and improved visibility of the network in the EU Institutions, which lead to a dialogue around the EU policies against deforestation.

Jelmen also was a Board Member of the European Network of Political Foundations for 10 years.

Jelmen also worked in South-Africa and in Israel/Palestine. In South-Africa he coordinated a project with industry, trade unions, and NGOs on HIV/AIDS which lead to a global project in ports and major transport hubs. In Israel/Palestine he acted as a match-maker between mayors, ngo's, and social partners from Israel and Palestine. The network strategy he developped has led to first contacts between Mayors during the intifada and to a new export corridor for agricultural products in the north of the West-Bank.

Jelmen has several academic degrees (a o Executive Master International Association Management, Subsequent Master Banking and Finance, Master Educational Sciences).

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On September 14, the European Parliament adopted its position on the EU Deforestation-free products proposal banning the import of commodities driving deforestation. The proposal, initially presented by the European Commission in November last year, aims to ensure that commodities placed on the EU market are not produced on deforested land. With the current paper we review the regulatory approach the EU takes, including key elements of the EU Parliament position and advantages of a regulatory approach. To be clear, whilst a regulatory approach can have benefits, it should take into account the real impact on the ground, and it should have a holistic view. This can lead to successes as the palm oil sector has shown. Indonesia and Malaysia are examples of how reducing deforestation and raising food production can go hand in hand. We conclude with some suggestions on how the current draft proposal can be improved. Last but not least, we argue that we need effective partnerships and structured dialogue to make this happen.

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Questions & Answers (6) :

Jelmen Haaze

10 months ago

My apologies for the belated replies due to illness.

Peng Kong Law

10 months ago

Does the Regulation covers every agricultural crop entering EU market or just palm oil?

Jelmen Haaze:
There are several regulatory initiatives covering "products" imported into the EU. There are some interpretations that even a TV-production will need to comply with the human rights regulations. In addition, there are specific no-deforestation requirements foreseen in the Deforestation regulation which has: "A product scope, which is regularly reviewed and updated, focusing on commodities with the highest EU embodied deforestation (beef, palm oil, soy, wood, cocoa, and coffee) and related products" (original proposal, now e.g. addition of poultry and rubber is being discussed).
10 months ago

Low SL

10 months ago

Hi, Mr Jelmen. I am referring to the statement 'If annual turnover exceeds 150 million euros, the company needs to integrate Paris Agreement's goal of limiting the planet's warming to 1.5 degrees Celsius into its own policy'. Can I know if this regulation only applies to companies registered in EU or also covers its overseas suppliers, traders or other actors along its supply chain ?

Jelmen Haaze:
The EU based company will need to ensure that all procurement will be in line with its own policy.
10 months ago

WONG YQ

10 months ago

NDPE should equally come across all commodities, sugarcane, soybean, rapeseed oil, etc, but not only focus in oil palm. Premium charges is important for the additional cost for this effort.

Jelmen Haaze:
On the scope: The human rights aspect will be on all products. With regards to the additional no-deforestation criteria, the regulation has "A product scope, which is regularly reviewed and updated, focusing on commodities with the highest EU embodied deforestation (beef, palm oil, soy, wood, cocoa, and coffee) and related products" (original proposal, now e.g. addition of poultry and rubber is being discussed).
10 months ago

George Teh

10 months ago

Dear Mr Haaze I'm curious if the olive, rapeseed, sunflower oil etc. produced in EU countries originated and grown on virgin farm lands from the earth's primordial age? From their moral high ground, what do the EU countries propose to demonstrate by way of discipline wrt. to their own moral obligation to answer and pay for crimes of deforestation they committed historically? Thank you.

Jelmen Haaze:
Internally, this is dealt with through the EU Forest Strategy, accompanied by the "Staff Working Document on the Stakeholder Consultation and Evidence Base" and the "Staff Working Document on the 3 Billion Tree Planting Pledge for 2030". https://environment.ec.europa.eu/strategy/forest-strategy_en
10 months ago

HAMISH A/L REVINDRAN

10 months ago

The uploaded slides (PDF File) and the slides used in Mr Jelmen's presentation are different.