The European Commission announced that it is proposing a one-year delay to the implementation of the EU Deforestation Regulation (EUDR), a new law aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, which is currently set to apply to from the end of this year, beginning with large companies.
According to the Commission, the decision was made following “feedback received from international partners about their state of preparations.”
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked projects on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
The regulation entered into effect in June 2023, giving companies 18 months to implement the rules, which would become applicable at the end of December 2024 for large companies, and June 2025 for micro- and small enterprises.
Under the Commission’s proposal, the new implementation dates, if approved by the EU Parliament and Council, would be shifted to December 30, 2025 and June 30, 2026. The Commission said that “several global partners have repeatedly expressed concerns about their state of preparedness,” adding that even within the EU, “the state of preparations amongst stakeholders in Europe is also uneven.”
The Commission added:
“Given the EUDR’s novel character, the swift calendar, and the variety of international stakeholders involved, the Commission considers that a 12-month additional time to phase in the system is a balanced solution to support operators around the world in securing a smooth implementation from the start. With this step, the Commission aims to provide certainty about the way forward and to ensure the success of the EUDR, which is paramount to address the EU’s contribution to the pressing global issue of deforestation. The extension proposal in no way puts into question the objectives or the substance of the law, as agreed by the EU co-legislators.”
