The adopted position would mean that financial institutions fall under the remit of the regulation, requiring them to conduct additional due diligence on both established and new customers.
By JP Sweny, Michael Green, James Bee, and Vanessa McLellan
On 13 September 2022, the European Parliament voted to adopt its position in relation to the European Commission’s proposed regulation on deforestation-free products. The European Parliament’s position would widen the scope of commodities and products covered by the regulation, and subject financial institutions to additional due diligence requirements to ensure that their activities do not contribute to deforestation.