The European Council of Ministers has endorsed the European Commission’s proposal to postpone the implementation of the EU Deforestation Regulation (EUDR) for a year.
The delay, which still has to be agreed by the European parliament, would bring relief to importers and users of soya across the EU and in the UK, postponing the impact of the new regulations until the end of 2025.
The council said the postponement will allow member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free. As well as soya, this includes products made from cattle, wood, cocoa, palm oil, coffee, rubber, and some of their derived products.
The deforestation regulation has been in force since June 29, 2023 and its provisions are to be applied from 30 December 2024. The Council has agreed, however, to the Commission’s proposal to postpone the application date of the regulation by one year.
Therefore, if agreed by the European Parliament, the obligations stemming from this regulation will be binding from December 30, 2025, for large operators and traders, and June 30, 2026, for micro- and small enterprises.
“This would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products,” the council said. “These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.”
The Commission submitted its proposal on postponing the application date of the deforestation regulation in response to concerns raised by member states, third countries, traders and operators that there was a risk that they would not be able to fully comply with the rules by December 31, 2024.
There had been growing concern within the UK food supply chain, particularly the pig sector, a major user, that EUDR would affect the availability and price of soya next year, if the original timetable had been adhered to.
Next steps
The council will now inform the European Parliament of its position in view of the parliament taking a decision on its position. The aim is to have the regulation formally adopted by both co-legislators and published in the Official Journal of the EU so that it can enter into force by the end of the year.
It stressed that the targeted amendment will not affect the substance of the already existing rules, which is to minimise the EU’s contribution to deforestation and forest degradation worldwide, by only allowing placing on the EU market, or exporting from the EU, deforestation-free products.
Deforestation-free products are products that have been produced on land not subject to deforestation or forest degradation after 31 December 2020.
It said the main driver of global deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of the commodities included in the scope of the regulation. As the EU is a major consumer of such commodities, it can reduce its contribution to global deforestation and forest degradation by making sure these products and related supply chains are ‘deforestation-free’.