This regulation is an important element in EU support for the promotion of environmentally sustainable development in the developing world and provides a legal basis for expenditure by the European Union on the sustainable management and conservation of tropical forests.
Under the terms of the regulation, the Union will provide financial support or technical expertise for operations which support and encourage the efforts of the developing countries and their regional organisations to conserve and sustainably manage their tropical forests, in the context of the sustainable development of those countries and regions.
European Union policy on the development aspects of tropical forest management was set out in a Council Resolution of May 1990. This regulation brings up to date elements of that Resolution in the light of subsequent developments, including the Conventions on Climate Change and Biodiversity and the establishment of the Commission on Sustainable Development.