Businesses given 18 months to prepare following agreement between EU Parliament and Council on the EU Deforestation-free Regulation (EUDR)
6 Dec 2022
This major new EU regulation is one step closer to being implemented following the provisional political agreement reached between the European Parliament and the Council on the EU Deforestation-free Regulation.
Following the formal approval process, businesses will be given 18 months in which to prepare for the significant new due diligence requirements, likely in 2024. Micro and small enterprises will enjoy a longer adaptation period, as well as other specific provisions.
When the new rules enter into force, companies will have to conduct strict due diligence if they place on the EU market, or export from it: palm oil, cattle, soy, coffee, cocoa, timber and rubber (as well as derived products such as beef, furniture, or chocolate). The EU has identified these commodities as the main driver of deforestation due to agricultural expansion.
Key features of the EUDR:
- Operators and traders will have to prove that the products are both deforestation-free (produced on land that was not subject to deforestation after 31 December 2020) and legal (compliant with all relevant applicable laws in force in the country of production). This is in contrast to the EUTR, which focused on legality.
- Companies will also be required to collect geographical information on the farmland where the commodities that they source have been grown.
- The Commission will run a benchmarking system that will assess countries or parts thereof and their level of risk of deforestation and forest degradation – a high, standard or low risk. Obligations for companies will depend on the level of risk.
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