# Council agrees on new rules to drive down deforestation and forest degradation globally

> The EU Council adopted its negotiating position on a regulation requiring mandatory due diligence for operators and traders who place, make available or export palm oil, beef, timber, coffee, cocoa and soy in the EU market, along with derived products such as leather and chocolate. The text adds a country benchmarking system that assigns low, standard or high deforestation risk, which sets the level of inspections. Small operators may rely on larger operators for their due diligence declarations.

- Date: 2022-06-28 · published 2022-06-28T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/40965-council-agrees-on-new-rules-to-drive-down-deforestation-and-forest-degradation
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Compliance costs and traceability demands could raise the cost of soy, palm oil and beef entering the EU, which may shift trade flows toward lower-risk origins. The law is still a proposal, so the price impact is for now a medium-term risk rather than an immediate move.

## Read by commodity

- SOY: neutral
- LCATTLE: neutral
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| LCATTLE | 2023-08-22 | [EU Adopts New Regulation To Reduce Global Deforestation](https://feedsoft.ai/events/34614-eu-adopts-new-regulation-to-reduce-global-deforestation.md) | -0.1% | +1.8% |
| LCATTLE | 2021-12-01 | [The European Commission’s Proposed Ban on Products Driving Deforestation and Forest Degradation \| Steptoe](https://feedsoft.ai/events/43610-the-european-commission-s-proposed-ban-on-products-driving-deforestation-and.md) | +1.7% | +0.4% |
| LCATTLE | 2023-01-16 | [MEPs approve Parliament/Council agreement on ‘imported deforestation’ EU regulation \| AGENCE EUROPE](https://feedsoft.ai/events/37812-meps-approve-parliament-council-agreement-on-imported-deforestation-eu.md) | -0.7% | +1.2% |
| LCATTLE | 2020-06-30 | [Closing the accountability loop on commodity-driven deforestation](https://feedsoft.ai/events/52637-closing-the-accountability-loop-on-commodity-driven-deforestation.md) | +1.9% | +3.6% |
| LCATTLE | 2025-07-02 | [A comprehensive overview of the EU deforestation regulation](https://feedsoft.ai/events/23776-a-comprehensive-overview-of-the-eu-deforestation-regulation.md) | +2.1% | +7.4% |
| SOY | 2022-07-03 | [New rules to drive down deforestation and forest degradation globally – The European Times](https://feedsoft.ai/events/40523-new-rules-to-drive-down-deforestation-and-forest-degradation-globally-the.md) | +0.9% | -2.0% |
| SOY | 2019-02-28 | [Stepping up EU action on deforestation and forest degradation – Global Canopy](https://feedsoft.ai/events/60626-stepping-up-eu-action-on-deforestation-and-forest-degradation-global-canopy.md) | -1.5% | -1.8% |
| SOY | 2020-05-04 | [New EU rules to remove deforestation from supply chains – Global Canopy](https://feedsoft.ai/events/53149-new-eu-rules-to-remove-deforestation-from-supply-chains-global-canopy.md) | +0.2% | -0.8% |

## Sources

- business-humanrights.org: https://www.business-humanrights.org/en/latest-news/council-agrees-on-new-rules-to-drive-down-deforestation-and-forest-degradation-globally/
- consilium.europa.eu: https://www.consilium.europa.eu/en/press/press-releases/2022/06/28/council-agrees-on-new-rules-to-drive-down-deforestation-and-forest-degradation/?sf166926828=1

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.