On 17 December, the European Parliament approved the postponement by one year of the entry into force of the EU regulation against deforestation, known as Eudr (European Deforestation Regulation). What exactly does this postponement mean and what are its implications?
What is EUDR?
The EUDR is a regulation that aims to reduce the impact of European consumption on global deforestation. According to the Food and Agriculture Organization of the United Nations (FAO), between 1990 and 2020 420 million hectares of forest have been lostan area larger than the entire European Union. Of this loss, approximately 10% is attributable to the consumption of European citizens.
The EUDR introduces more rigorous controls to ensure that products placed on the European market, such as coffee, cocoa, palm oil, soya, beef and wood, . Companies will have to demonstrate the sustainable provenance of their productsthrough traceability and due diligence systems. This means that they will have to collect detailed information on the origin of raw materials, verify that they are not linked to deforestation and take mitigation measures in case of risks.
With how many votes was the postponement approved and what does it imply?
The postponement of the application of the EUDR was approved by the European Parliament with a large majority: 546 votes in favour, 97 against and 7 abstentions. This vote reflects the consensus reached between different political forces on the need to give companies more time to adapt to the new rules. The postponement implies that large companies will have until 30 December 2025, while small and medium-sized enterprises (SMEs) until 30 June 2026to fully comply with the regulation.
What are the next steps?
The legislative process of the EUDR is not yet concluded. Before the one-year postponement can come into force, the text agreed between Parliament and Council it will have to be formally approved by the EU Council and published in the Official Journal of the EU by the end of 2024. Once this process is completed, the regulation will come into force and companies will have to start adapting to the new rules.
Why the postponement?
The postponement was granted in response to concerns raised by several member countries, the business community and producing countries, which they complained about the lack of time to adapt to the new regulations. Companies, especially SMEs, would need more time to implement the traceability and control systems required by the EUDR.
The postponement gives companies more time to prepare, without changing the objectives of the regulation. This could facilitate the implementation of EUDR and reduce the impact on businesses, particularly SMEs. On the other hand, however, the postponement delays EU action against deforestationwith possible negative consequences for the environment. Every year of delay means further loss of forests and biodiversity.
The postponement was welcomed by trade associations and some member countries, such as Italy, which had asked for more time for businesses. Environmental organizations, however, have expressed concern about the delay in action against deforestation. «It is positive that the key elements of EU legislation to combat deforestation remain unchanged. However, delaying its application for a year represents a step backwards. We cannot afford another year of deforestation,” he said Anke Schulmeister-Oldenhoveforestry manager at the WWF European policies office. «The agreement is also significant in that the EPP’s attempt to weaken the EUDR and with it the European Green Deal was foiled».
Following the agreement, the rapporteur Christine Schneider (EPP, DE) said: “We promised and we delivered. We have paid attention to reports of several struggling sectors and ensured that affected businesses, foresters, farmers and authorities have an additional year to prepare. This time must be used effectively to ensure that the measures announced in the Commission’s binding declaration, including the online platform and risk categorisation, are implemented consistently to ensure predictability throughout the supply chain. An impact assessment and further simplification will follow during the review phase for low-risk countries or regions, providing countries with an added incentive to improve their forest conservation practices”.
“Parliament will carefully monitor the procedure aimed at reducing bureaucracy to ensure that the Commission’s words are followed by action. Our objective remains clear: the regulation must not have a negative impact on stakeholders and consumers,” he concluded.
