15.11.2024
The European Parliament has approved a one-year delay for implementing the EU Deforestation Regulation (EUDR), setting new deadlines of December 30, 2025, for large operators and June 30, 2026, for SMEs. This decision also includes the adoption of a new “no-risk” country category, which is still subject to trilogue discussions.
Postponement of EUDR Implementation
Last October (on the eve of our forum), the Commission proposed a one-year delay in the application of the deforestation regulation. Today, the European Parliament approved this delay by a vote of 371 in favor, 240 against, and 30 abstentions.
Parlement
This means that large operators and traders will be required to comply with the regulation by December 30, 2025, while micro and small enterprises will have until June 30, 2026.
This delay allows the European Commission to finalize the systems required by the regulation (such as the information system and country risk assessment) and gives operators additional time to prepare. However, it is disappointing for certain sectors, like the certified tropical forest-wood sector and some companies that have already invested in deforestation-free supply chains to comply with the regulation by the original date of December 30, 2024.
Proposal of a New “No-Risk” Category
During the same session, the Parliament adopted other amendments, including a proposal from certain political groups (notably the EPP) to create a “no-risk” deforestation category, in addition to the existing “low,” “standard,” and “high” risk categories.
To be classified as “no-risk,” countries must meet specific criteria, including stable or increased forest area since 1990, the signing of relevant international agreements (such as the Paris Climate Agreement and conventions on human rights), and transparent implementation and monitoring of national regulations for deforestation prevention and forest conservation.
Some Southern countries, despite progress in reducing deforestation, may struggle to demonstrate “transparent implementation and monitoring of national regulations.”
Withdrawal of a Proposed Exemption for Traders
The EPP, which introduced these amendments, ultimately withdrew a proposed exemption for traders. An EPP spokesperson clarified that this decision followed assurances from the Commission that guidance documents would address this issue.
Next Steps
The Parliament has decided to refer these provisions to committee for interinstitutional negotiations (trilogue). For these changes to take effect, the final text must be approved by both the Council and Parliament and published in the EU Official Journal. The Council of Ministers, the European Commission, and the Parliament must reach a common position by the end of the year.
Some observers are already expressing doubts about whether negotiations will conclude in time to publish the modified version with the new timeline before December 30, 2024.
Reminder of the EUDR
Published in June 2023, the EUDR aims to combat climate change and biodiversity loss by curbing deforestation linked to EU consumption of products like livestock, cocoa, coffee, palm oil, soy, wood, rubber, charcoal, and printed paper. Although in force since June 29, 2023, its obligations were initially set to apply to companies as of December 30, 2024 (and June 30, 2025, for SMEs).
