Delay of European action against deforestation gives entrepreneurs breathing space
December 2024 - The European Forest Regulation, or EUDR, gets a one-year reprieve. This means large companies will not have to comply with the new rules until 30 December 2025. For SMEs, the deadline is 30 June 2026. The decision comes after mounting pressure from several countries and interest groups.
What is the EU Deforestation Regulation (EUDR)?
The EU Deforestation Regulation (EUDR) is a European regulation that aims to combat deforestation and forest degradation worldwide. It requires companies to prove that certain products, such as palm oil, soy, coffee, cocoa, timber, rubber and meat, come from sustainable and legal sources. Only products that have not contributed to deforestation after 31 December 2020 will be allowed to enter the EU market. This affects the entire supply chain and positions Europe as a global leader in the fight against deforestation.
New risk classification: opportunities and criticisms
The regulation was originally supposed to come into force from the end of 2024. In addition to the delay, the European Parliament has added a new category to the existing classification of countries based on deforestation risk. In addition to ‘low’, ‘standard’ and ‘high’ risk, there is now also a ‘no risk’ category. This new group includes countries with stable or growing forest cover. Less stringent requirements apply to these countries.
While this reduces administrative burdens for some companies, critics express concerns. They fear that the ‘no risk’ category could be abused, leading to so-called ‘greenlaundering’: the laundering of illegal logging under a sustainable image. This raises questions about the reliability of the regulation.
What does this mean for entrepreneurs?
Entrepreneurs now have extra time to make their chain more transparent and comply with the new rules. Large companies must be able to guarantee full traceability of their products from 2025. SMEs will follow six months later. The parliament also urges the European Commission to develop a clear benchmarking system to classify countries by June 2025.
Entrepreneurs committed to sustainable practices remain at an advantage, but it is clear that the next few years will require an adjustment. The file is now back with the commission for further negotiations.
