The European Parliament has ratified the move to delay implementation of the EU Deforestation Regulation (EUDR) for a year, which will bring some stability to the market for soya.
The European Commission proposed the delay in early October 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 new rules under the orignal timetable of December 31, 2024.
The European Council of Ministers endorsed the proposal a few weeks later and MEPs, the final part in the jigsaw, have now approved the 12-month postponement by 371 votes to 240 against and 30 abstentions.
EUDR, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products, including soya, cattle, cocoa, coffee, palm-oil, wood, rubber, charcoal and printed paper.
The parliament said it had agreed to the delay, so companies can comply with the new regulations, which ensure products sold in the EU are not sourced from deforested land.
There had been widespread concerns within EU and UK livestock supply chains that rely on imported soya, that under the original timetable, the new requirements would cause shortages and higher prices as the systems to deliver them would not be ready by the start of 2025.
Under the new timetable, large operators and traders will have to respect the obligations stemming from this regulation as of December 30, 2025, whereas micro- and small enterprises would have until June 30, 2026.
This additional time will help operators around the world to implement the rules smoothly from the start without undermining the objectives of the law, the parliament said.
Parliament also adopted other amendments proposed by the political groups, including the creation of a new category of countries posing ‘no risk’ on deforestation, in addition to the existing three categories of ‘low’, ‘standard’ and ‘high”’ risk. Countries classified as ‘no risk’, defined as countries with stable or increasing forest area development, would face significantly less stringent requirements. The Commission will have to finalise a country benchmarking system by 30 June 2025.
NPA chief executive Lizzie Wilson welcomed confirmation of the delay. “This is the most sensible option available, given that it has become increasingly clear the supply chain is simply not in a position to deliver the requirements of EUDR by the start of next year,” she said.
“This will allow a transitioned introduction and, therefore, time for the supply chain to adjust to the new conditions, the detail of which will require further clarification.
“It is now important that the UK government adjusts the timetable for the similar UK Forest Risk Commodities regulation accordingly, so we are in step with the EU on this.”
The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest, an area larger than the EU, were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation, with palm oil and soya accounting for more than two-thirds of this.