The European Commission has taken a major step towards implementing the EU Deforestation Regulation (EUDR), aimed at preventing deforestation globally by regulating products entering or exported from the EU market.
Extended Timeline for EUDR Requirements
Recognizing the global scope of this legislation and the challenges it poses to businesses, the European Commission has proposed extending the compliance deadlines. Large and medium-sized enterprises have until 30 December 2025, to fully implement the EUDR requirements, while small and micro-enterprises have until 30 June 2026. The additional 12 months will serve as a transitional period. If the proposal is accepted, businesses will have the time to implement due diligence systems, ensuring that their supply chains are deforestation-free.
New Guidelines and Dedicated Information System
In tandem with the extended timeline, the European Commission has issued updated guidelines and an extensive framework for international cooperation. These guidelines clarify key definitions within the regulation, such as concepts of operators, due diligence and market placement, as well as legal requirements and timeframes. Moreover, SMEs can benefit from simplified rules and reduced obligations.
As previously announced, a fully operational IT system will be made available in December of this year, allowing businesses to submit their due diligence declarations. Registration and submission of documents will therefore be possible even before the Regulation officially comes into force.
Strategic International Cooperation Framework
The Commission’s strategy emphasizes international collaboration, recognizing that deforestation is a global issue requiring coordinated responses. Accordingly, most countries worldwide will be classified as “low risk”. This aims to focus efforts on cooperating with high-risk countries to help them meet EUDR standards. These goals will be achieved through actions such as:
- Promoting sustainable agricultural practices and deforestation-free supply chains worldwide, and
- Integrating human rights principles, particularly the rights of indigenous communities affected by deforestation.
Importance of EUDR
The EU Deforestation Regulation is a crucial tool in combating climate change, aimed at reducing the EU’s contribution to global deforestation and forest degradation. Forests are essential in absorbing carbon dioxide, and their destruction accelerates global warming and biodiversity loss. The success of this regulation hinges on cooperation between the EU, businesses, and international partners, particularly in regions most affected by deforestation. The additional time granted to companies to comply with the EUDR is expected to facilitate a smooth and effective transition towards deforestation-free supply chains, ensuring that environmental sustainability and global trade go hand in hand.
EC Press Release 02.10.2024: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5009
