European Parliament Vote Confirms Delay of EUDR Implementation

Nov 20, 2024 | Markets | 0 comments

BELGIUM – The European Parliament has voted to delay the EU Deforestation Regulation (EUDR) by one year.

Originally set to take effect on December 30, 2024, the law will now apply from December 30, 2025, for large companies, and June 30, 2026, for small businesses.

The EUDR bans the sale in the EU of seven commodities linked to deforestation: palm oil, soybeans, timber, rubber, coffee, cocoa, and cattle. The delay allows businesses more time to comply without compromising the law’s goals.

In addition to the delay, the Parliament introduced changes, including a new “no risk” category for countries with stable or increasing forest areas, facing fewer requirements. The European Commission will finalize the benchmarking system by June 2025.

The regulation will undergo further adjustments by the ENVI Committee, with a new vote expected in late November or mid-December. Once approved, the final text must be published in the EU Official Journal.

Spanish company LIPSA said it had already made significant progress in complying with the EUDR. “We assure our customers that our products will not contribute to deforestation when the law takes effect,” it stated.

While some trade groups supported the delay, environmentalists, including former EU Commissioner Virginijus Sinkevičius, criticized it, warning it could worsen deforestation and carbon emissions.

The FAO estimates that 420 million hectares of forest were lost to deforestation from 1990 to 2020, with EU consumption responsible for 10% of global deforestation.

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