Reform of the GI Scheme: Analysis of EU Regulation 2024/1143
The reform of the Geographical Indications system, introduced with the launch of the Regulation (EU) 2024/1143 of the European Parliament and the Council of 11 April 2024, represents the real novelty and in some ways a ’small revolution“ in the regulatory framework of certified quality schemes, because introduces for the first time the concept of sustainability of GIs in environmental, social, economic and animal welfare terms.
Analysing the text of the regulation, one perceives, right from the recitals, the importance that the European legislator attaches to Geographical Indications as a central instrument of the EU “green” strategy and the transition to sustainable food systems.
“Geographical Indications - recital 3 states - can play a important role in terms of sustainability, also in the area of the circular economy, increasing its value as a cultural heritage and thus strengthening its role in the framework of national and regional policies in order to achieve the objectives of the European Green Deal.”
“The Commission Communication of 20 May 2020 - states the following recital 4 - entitled «A Producer-to-Consumer Strategy for a Fair, Healthy and Environmentally Sound Food System“, which called for a transition to sustainable food systems, also called for strengthen the legislative framework for Geographical Indications and introduce specific sustainability criteria. In the communication, the Commission committed itself to strengthen, among other actors, the position of producers of Geographical Indication products, their cooperatives and producer organisations in the food chain. The focus should be on small producers, especially those who best preserve traditional skills and know-how.”
At the same time, the prerogatives of the groups (the Consorzi di Tutela in Italy) were strengthened, producers of GI-designated products are thus encouraged to comply with sustainable practices that include environmental, social and economic objectives, which go beyond mandatory standards.
The regulation opens up the possibility that such practices can be laid down in the product specifications, as well as the possibility for recognised producer groups to draw up sustainability reports in which they communicate the sustainable practices applied in the production of the certified quality product.
Delving into the normative dictate, already among the objectives set out in the’Article 4 of the regulation and which motivate the creation of a unitary and comprehensive system of Geographical Indications protecting the names of wines, spirits and agricultural products, there emerges the need to ensure “...that producers acting collectively have the necessary powers and responsibilities to manage the GI in question, including to meet society's needs, e.g. for animal health and welfare, for products that are the result of sustainable production in its three dimensions of economic, environmental and social value, and to operate and be competitive on the market”.
But it is the Articles 7 and 8 those of greatest importance for the purposes of this analysis, as they deal with the sustainability of GIs, primarily recognising the possibility for producer groups to agree on sustainable practices to be complied with in the production of the product designated by a GI or in the performance of other activities subject to one or more of the obligations in the specification. These practices must aim to apply sustainability standards that are stricter than those required by Union or national law in terms of environmental, social or economic sustainability or animal welfare (Article 7(1)).
For «sustainable practice» the European legislator refers to a practice that contributes to one or more social, environmental or economic objectives, such as (Article 7(2)):
- Climate change mitigation and adaptation; sustainable use and protection of landscape, water and soil; transition to a circular economy, including the reduction of food waste; prevention and reduction of pollution; and protection and restoration of biodiversity and ecosystems;
- production of agricultural products in ways that reduce the use of pesticides and manage the risks arising from such use, or reduce the risk of antimicrobial resistance in agricultural production;
- animal welfare;
- fair income for producers, diversification of activities, promotion of local agricultural production and enhancement of the rural fabric and local development;
- maintaining employment in the agricultural sector by attracting and supporting young producers and new producers of products benefiting from a protected geographical indication;
- improvement of working and safety conditions of agricultural and processing activities.
To the next point 3 of Article 7 the regulation attributes the power to the producer group to include these practices in the production specifications, if these are mandatory for all producers of the product concerned.
L’Article 8 deals with how groups can communicate the impact of the sustainable practices adopted. This information may be provided by the drafting and regular updating of a sustainability report based on verifiable information, This includes a description of the existing sustainable practices used in the production of the product, the impact of the product's production method on sustainability in terms of environmental, social, economic or animal welfare commitments, and the information needed to understand how sustainability affects the product's development, performance and position.
The same article states that the European Commission shall publish the sustainability report.
In addition to agreeing on sustainable practices under Article 7, the Regulation (Article 32 et seq.) assigns producer groups several tasks including undertake actions to improve the performance of the Geographical Indication, in terms of environmental, social and economic sustainability (through publicity campaigns, information activities on the characteristics of the GI product and tourist services offered by the area of origin concerned, analyses concerning the economic, social or environmental performance of production, dissemination of information on the GI, the relevant Union symbol and the abbreviation PDO or PGI, consulting, training and dissemination of best practice guidelines for current and future producers, including on sustainable practices, scientific and technical progress, digitisation, gender equality and integration and consumer awareness).
