The EUDR Delay & Proposed Amendments: What It Means for Our Industry
A few months ago, the European Commission proposed delaying the implementation of the European Union Deforestation Regulation (EUDR) by one year due to its own inability to adequately prepare. This proposal has already been accepted by the European Council, and the European Parliament is set to vote on it on November 13 and 14. The outcome of this vote is largely anticipated, given that the EPP and other right-leaning parties hold a majority since the last elections.
New Amendments Proposed by the EPP
The latest twist in this regulatory journey is the EPP’s submission of amendments to the EUDR, also set for a vote on the same dates. The amendments seek to bring more practicality and clarity to what many see as a cumbersome regulatory framework. Here’s a summary of what the amendments aim to achieve:
1. Introducing a "No Risk" Category for Origin Countries
This proposed category will encompass countries or regions that meet stringent criteria, including:
- Stability or an increase in forest area since 1990.
- Adherence to the Paris Climate Agreement and other international conventions on human rights and deforestation prevention.
- Transparent, well-monitored, and strictly implemented national regulations on deforestation and forest conservation.
Additionally, Member States would be required to annually inspect at least 0.1% of operators dealing with products posing a negligible risk.
2. Reducing Legal Obligations for EU Companies
The amendments propose eliminating most legal obligations for EU companies that market products produced or imported by another party, known as the “operator.”
3. Extending the Implementation Timeline
The EUDR’s implementation would be delayed by two years, with a new requirement that the European Commission be fully prepared at least six months in advance. This reflects the reality that, despite the imminent theoretical implementation date, the necessary digital tools and answers to practical industry questions remain incomplete.
4. Preventing Trade Wars
To avoid potential trade conflicts with key countries like the United States and China, the amendments would impose new obligations on the Commission. The unique challenges faced by the U.S., with forests primarily owned by small private landowners, and China’s ban on providing geolocation data, underscore the need for pragmatic solutions to prevent unintended trade barriers.
Why These Amendments Matter
Environmental groups have voiced concerns, labeling the amendments as a potential threat to global forests. However, the reality is more nuanced. The EUDR was designed to combat deforestation, a complex issue driven by demographic pressures in Africa and the higher profitability of agriculture in tropical countries. By imposing extensive compliance costs on countries with little to no deforestation risk, the EUDR could inadvertently hinder efforts to combat climate change—a counterproductive outcome.
Together, We Can Drive Positive Change
The future of our industry depends on balanced, effective regulation that addresses real challenges without imposing unnecessary burdens. Let’s work together to make our voices heard.We at Fordaq typically focus on informing, but in this case, we urge you to act. Please reach out to your representative in the European Parliament and encourage them to support these amendments. Share this message with your contacts and encourage them to voice their perspectives as well.
