The EU has heeded the calls from agri-food bodies and overseas politicians to delay the implementation of its new deforestation rules.
Its EU Deforestation Regulation (EUDR), announced in late 2021 and intended to help cut greenhouse gas emissions and limit biodiversity loss, was due to come into force before the end of this year.
Go deeper with GlobalData
Under the regulations, companies selling cocoa, coffee, palm oil and other products in the EU would need to prove their supply chains do not contribute to the destruction of forests.
But, amid claims that the timetable is unworkable, the European Commission (EC), the EU’s executive arm, announced today (2 October) it is giving companies an extra 12 months of “phasing-in time”.
Last week, powerful European farming body Copa-Cogeca and meat-industry organisation the European Livestock and Meat Trading Union (UECBV) co-signed a letter sent by sector bodies across a range of industries, including media, packaging and timber, arguing the implementation of EUDR, before the end of the year is “simply unfeasible”.
Some South-East Asian countries have also complained about the law.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn June, members of the US Department of Agriculture, the US Trade Representative office and the Department of Commerce wrote to the European Commission to call for a delay.
In a statement sent to Just Food at the time, a USDA spokesperson said the government was “concerned” about “how the regulation will be implemented and the impact it may have on US producers that engage in sustainable production practices”.
Acknowledging such opposition to its timetable in its announcement today, the EC said: “Given feedback received from international partners about their state of preparations, the Commission also proposes to give concerned parties additional time to prepare.”
If approved by the European Parliament and the Council, it would now make the law applicable on 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises.
The EC announced it is also publishing additional guidance documents and a “stronger international cooperation framework to support global stakeholders, member states and third countries in their preparations” for the implementation of the EUDR.
“The guidance presented today will provide additional clarity to companies and enforcing authorities to facilitate the application of the rules, coming on top of the Commission’s continuous support for stakeholders since the law’s adoption,” it said.
Key areas covered in the guidance include updates on penalties and clarifications on critical definitions such as ‘forest degradation’.
The EC added: “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.”
But it stressed: “The extension proposal in no way puts into question the objectives or the substance of the law, as agreed by the EU co-legislators.”
The co-legislators adopted the law in 2023, with overwhelming majorities both in the Parliament and in the Council.
However, one change announced today is that micro- and small companies will “benefit from a lighter regime, which is also detailed on a new dedicated webpage”.
The statement issued by agri-food bodies last week urging the EU to delay the implementation of the deforestation law said: “The undersigned organisations, representing European primary producers and various industries in the scope of the EUDR, fully support the goal of eradicating deforestation and forest degradation. We recognise the importance of global forests to combat climate change, preserve biodiversity and secure sustainable raw materials and supply chains and our responsibility to preserve them.
“Nevertheless, with less than 100 days remaining until the obligations for operators, traders, and competent authorities come into force, we are still grappling with severe legal and market uncertainties.”
Reacting to today’s news, several NGOs issued statements criticising the proposed delay.
“The European Commission’s announcement today does grave disservice to indigenous peoples and local communities who are already risking their lives to protect climate-critical forests,” Giulia Bondi, senior EU forests campaigner at UK-based Global Witness said.
“Businesses are pushing back because this law finally takes a stand against deforestation and those willing to clear priceless ecosystems to turn a profit. This law is the product of extensive negotiations, and any potential delay threatens the EU democratic decision-making process. That the European Commission is now caving in to pressure from industries who want to continue profiting from deforestation raises serious alarm about their priorities over the next five years.”
Nicole Polsterer, sustainable consumption and production campaigner at Fern, which lobbies on EU policies related to forests and forest peoples’ rights, said EC President Ursula Von der Leyen had “recognised that the EU has failed to seriously work with the countries most deeply affected by the law”.
“Deforestation is a deep-seated, complex problem that requires action at all levels. The reactions from many highly forested EU trade partners have shown that EU law cannot rely on a business-to-business approach.
“For the EUDR to succeed, the EU must fundamentally change its international stance and deliver on multi-stakeholder partnerships to support producer countries to comply. Such initiatives will only work if they give forest peoples and national civil society a seat at the table and if the specific needs of small-scale farmers are addressed. Otherwise, companies may squeeze them out of their supply chains.”
She added: “Many of those who pushed for this delay want to abandon the EUDR altogether. They will be determined to use the Commission’s proposal as an opportunity to achieve their agenda. We urge EU member states and members of the European Parliament to uphold the integrity of this pioneering and desperately needed law.”
