EUDR deforestation regulation

The European Union Deforestation Regulation (EUDR) was adopted in 2023 and was supposed to take effect on January 1, 2025, but in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply by the deadline, the European Parliament decided to postpone the EUDR by 12 months.

EUDR Regulation

The Deforestation Regulation, adopted by Parliament on April 19, 2023, aims to combat climate change and biodiversity loss by preventing the felling of trees associated with EU consumption of cattle products and crops such as cocoa, coffee, palm oil, soy, wood, rubber, charcoal, and printed paper. Most of the regulation’s provisions were to be applied as of December 30, 2024.

In order to ensure that the objectives of the EUDR Regulation are achieved, entities, including traders, making the said products available on or exporting from the market are required to exercise due diligence to prove that they meet the requirements of the Regulation. They are also responsible for conducting a detailed examination and analysis of their business activities, so they must first and foremost collect data relevant to the EUDR Regulation and relevant documents from each supplier.

Deforestation regulation postponed for 12 months

Responding to concerns raised by EU member states, non-EU countries, traders and operators that they will not be able to fully comply with the regulations by the current deadline, the European Commission has proposed postponing the start date of the deforestation regulation by 12 months. At a plenary meeting in October 2024, it was agreed that the proposal would be considered under the urgent procedure – Rule 170(6). The reason for this proposal is the need to give those concerned additional time to better prepare so that they can begin smoothly applying this important legislation. On November 14, 2024, the European Parliament voted to approve the postponement with 371 votes, 240 against and 30 abstentions.

According to the legislation, large operators and traders will have to comply with the regulation’s obligations as of December 30, 2025, while micro and small businesses will have to comply by June 30, 2026. This extra time will help operators around the world implement the regulations smoothly without undermining the law’s objectives.

Parliament also adopted other amendments proposed by political groups, including a request to create a new category of no deforestation risk countries, in addition to the existing three categories of low, standard and high risk. Countries classified as no risk, defined as those with stable or growing forest areas, would face much less stringent requirements because there is little or no risk of deforestation. The European Commission will have to finalize the country benchmarking system by June 30, 2025.

Guidelines on non-deforestation products

In response to emerging questions and concerns about anti-deforestation legislation, the European Commission has published additional guidance to assist stakeholders, Member States and third countries in preparing for the implementation of the EU Deforestation Regulation.

The guidelines contain a number of practical tips that may prove helpful when interpreting regulations. Key areas covered will receive detailed information on information system functionality, updates on penalties, and clarification on key definitions such as forest degradation, entity within the scope of the law, and marketing. There is also further guidance on traceability obligations.

The guidelines are divided into 11 chapters covering a variety of issues such as legality requirements, application timeframes, agricultural use, and clarification of product scope.

Deforestation vs. consumption

The Food and Agriculture Organization of the United Nations (FAO) estimates that 420 million hectares of forest – an area larger than the EU – were lost to deforestation between 1990 and 2020. EU consumption accounts for about 10 percent of global deforestation. Palm oil and soy account for more than two-thirds of this.

When will the revised regulations take effect?

The European Parliament has decided that the postponement proposal should be referred to a parliamentary committee for inter-institutional negotiations. For the changes to take effect, the agreed text will have to be approved by both the European Council and the European Parliament. It will then be published in the Official Journal of the EU.