EU plans strategy to mitigate climate change effects in Nigeria’s cocoa sector

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The European Union (EU) is preparing to introduce a comprehensive strategy focused on environmental protection and climate change mitigation, according to Massimo De Luca, Head of Cooperation for the EU Delegation to Nigeria and ECOWAS.

This announcement was made in Abuja as stakeholders gathered to review an EU-funded report assessing Nigeria’s cocoa and other value chains’ readiness to comply with the EU’s recent Deforestation Regulation.

The EU Deforestation Regulation (EUDR), enacted on June 29, 2023, aims to reduce the EU’s impact on global deforestation, curb biodiversity loss, limit greenhouse gas emissions, and uphold human and indigenous rights. EUDR’s scope includes cocoa, as well as other key commodities like palm oil, soy, cattle, coffee, rubber, timber, and products derived from them, such as beef, chocolate, and furniture. Given that the EU currently absorbs 67% of Nigeria’s cocoa exports, ensuring compliance within this sector is particularly crucial.

“In cocoa production, farmers often clear large forested areas, leading to deforestation. The EUDR’s role in deterring deforestation is essential, and the EU aims to support local farmers through improved agricultural practices and productivity enhancements,” De Luca explained.

The workshop also introduced the EU Corporate Sustainability Due Diligence Directive (CS3D), a regulatory measure requiring companies to minimize environmental and social harm across their supply chains. Emphasizing its importance, De Luca stated, “Companies must assess and address environmental risks and social issues, including water usage and child labor, while ensuring adherence to both local and global standards.”

Senator Abubakar Kyari, Nigeria’s Minister of Agriculture and Food Security, expressed his support for the EU’s collaboration with the Federal Ministry of Agriculture and Food Security. Deputy Director of Cocoa and National Cocoa Management Committee member Ajayi Olutobaba, representing the minister, highlighted the importance of due diligence assessments to secure deforestation-free value chains. He noted the recent establishment of a National Taskforce on EUDR, tasked with coordinating a national response to the EU’s requirements.

Head of the EU-commissioned study, Javier Sánchez, acknowledged that while EUDR compliance may pose initial challenges for producing countries, it also offers medium-term benefits. “The EUDR should be viewed as a chance for Nigeria to enhance environmental sustainability, create resilient value chains, and strengthen regulatory compliance within the sector,” he said.

Sánchez added that the private sector, particularly EU importers, plays a pivotal role in EUDR enforcement and may face substantial sanctions for non-compliance. He highlighted that businesses involved in the value chain will likely demand increased transparency from cooperatives and intermediaries to verify product origins.

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