As the European Union prepares to enforce its new Regulation on Deforestation-Free Products (EUDR) this December, a clash among lawmakers has emerged, leading to calls for a six-month postponement. German Food and Agriculture Minister Cem Özdemir has urged the European Commission to delay the regulation's application to July 2025, highlighting concerns from companies about their ability to comply.
Özdemir stated, "Companies need sufficient time to prepare," warning that failure to do so could disrupt supply chains and negatively impact the German and European economies, as well as small farmers in third countries. His plea has been echoed by conservative members of the European Parliament, who describe the regulation as a "bureaucratic monster" that risks jeopardizing the EU's animal feed supply.
In response to the growing alarm, the Commission has promised additional guidelines in the Spring, although these have yet to materialize. Meanwhile, centre-left MEPs are advocating for the original timeline, emphasizing the urgency of implementing the EUDR without delay.
The EUDR, which became law in June 2023, requires companies importing or exporting certain commodities to prove that their products are not linked to deforestation or forest degradation. This includes commodities such as soy, palm oil, rubber, wood, coffee, cacao, and cattle. The law mandates rigorous due diligence processes, including geolocation data gathering and risk assessment.
Concerns have been raised about the potential impact on European supply chains, particularly for smallholder farmers in developing countries who may lack the resources for compliance. With upcoming European Parliament elections in June 2024, the future of environmental regulations like the EUDR hangs in the balance, as a more conservative Parliament may lead to a dilution of these laws.
Industry insiders speculate that even if the EUDR's start date is delayed, its core requirements are unlikely to be weakened. A potential "soft launch" could see enforcement begin in 2025 or 2026, allowing time for national governments to prepare.
Forestry campaigners are urging the Commission to expedite the release of guidelines rather than delay the law, arguing that large companies, not smallholders, are primarily responsible for deforestation. They advocate for expanding the law to cover more commodities and ensuring that support for smallholders is increased.
The EUDR is poised to be a significant test for the EU's environmental ambitions in the face of new political realities.