Stockholm (NordSIP) – Following mounting pressure, including from the private sector and international partners, the European Commission (EC) announced it intends to delay (subject to approval by the European Parliament and the Council) the application of the EU Deforestation Regulation by 12 months. Nevertheless, the EC notes that “extension proposal in no way puts into question the objectives or the substance of the law, as agreed by the EU co-legislators.” The details of this delay were published by the Commission in additional guidance documents and a revised international cooperation framework.
Bowing Down to International Pressure
This announcement follows on the heels of a letter from Brazilian government ministers warning that the application of the EU Deforestation Regulation would very negatively affect trade between the two blocs. The government of the South American country requested that “the EU refrain from implementing the EUDR at the end of 2024 and urgently reassess its approach to the matter.”
“Given feedback received from international partners about their state of preparations, the Commission also proposes to give concerned parties additional time to prepare. (…) Since all the implementation tools are technically ready, the extra 12 months can serve as a phasing-in period to ensure proper and effective implementation,” the EC stated in a press release.
The new guidance is meant to clarify details of the EU Deforestation Regulation to companies and enforcing authorities so as to facilitate the application of the rules. “At the same time, the Commission recognises that three months ahead of the intended implementation date, several global partners have repeatedly expressed concerns about their state of preparedness, most recently during the United Nations General Assembly week in New York.” The EC also notes that the state of preparations amongst stakeholders in Europe is also uneven. “While many expect to be ready in time, thanks to intensive preparations, others have expressed concerns.”
The guidance documents covers details on the functionalities of the Information System, updates on penalties, and clarifications on critical definitions such as ‘forest degradation’, ‘operator’ in the scope of the law, and ‘placing on the market’. There is also further guidance on traceability obligations.
“The guidance is divided into 11 chapters covering a diverse range of issues such as legality requirements, timeframe of application, agricultural use, and clarifications on the product scope. All of these are supported by tangible scenarios. In addition, the latest FAQ, also published today, features over 40 new additional answers to address questions raised by a diverse range of stakeholders from around the world,” the EC explains, noting also that “micro- and small companies benefit from a lighter regime.”
Stakeholder Backlash
Stakeholders expressed concern regarding this decision. Responding to the announcement, Global Witness warned that postponing the regulation will only worsen the ongoing deforestation crisis, and grant deforesting companies additional opportunities to profit from environmental destruction through access to EU markets.
“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. Businesses are pushing back because this law finally takes a stand against deforestation and those willing to clear priceless ecosystems to turn a profit,” Giulia Bondi, Senior EU Forests Campaigner at Global Witness, said on this occasion.
“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.”
Global Witness is an international NGO working to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide, pushed back against the EC’s proposal.
Stientje van Veldhoven, Vice-President and Regional Director for Europe of World Resources Institute also expressed concern about this delay, despite noting that the lack of amendments to the rules was encouraging, for now.
“The European Commission’s proposal to delay the enforcement of the EU Deforestation Regulation is disappointing. It sends the wrong signal to national governments, both within and outside the EU, as well as to business partners, suggesting that the creation of a deforestation-free commodity market can wait. Given that the EU’s imports of commodities account for 13-16% of global deforestation, despite representing only 7% of the world’s population, its environmental footprint and consumer influence are disproportionately large. The world’s forests cannot afford another year without stronger protection,” van Veldhoven said.
“While we recognize the challenges the regulation poses for some producing countries, particularly for smallholder farmers, the focus should have been on easing implementation and ensuring greater support for tropical-producing nations. Most disappointing is the push from EU countries to delay enforcement, despite having more technical and financial resources to establish supply chain monitoring and traceability. “However, it is good to see that the proposal does not amend any substantive rules of the regulation. If this does not lead to further delays, we are still en route to a better protection of our global forests from harmful trade,” van Veldhoven concluded.
The World Resources Institute is an American NGO that studies sustainable practices for business, economics, finance and governance, with the purpose of better supporting human society and the organisation responsible for the publication of the World Resources Report.
Path Ahead
Following the publication of these amendments by the EC, the European Parliament and the Council are requested “to adopt the proposal for an extended implementation period by the end of the year.”
The Commission will also continue to discuss the regulation with the most concerned countries, a dialogue which “will feed into the speedy finalisation of the country benchmarking system through a proposed Implementing Act by 30 June 2025.”
