Delays and Revisions to the EU Deforestation Regulation

December 5, 2024

The European Parliament has pushed back compliance deadlines by one year and amended its provisions to the European Union's Deforestation Regulation (EUDR). This initiative is designed to combat global deforestation linked to imports by EU nations.  

The EUDR was to go into effect on December 30, 2024, for medium and large companies, with an extended compliance period for small companies. However, with the backing of the Council of the European Union, the European Commission proposed this delay to establish a 12-month adjustment period that would encourage smoother compliance. If these changes are included in EU Legislation at the end of 2024, large and medium-sized businesses will have a compliance deadline of December 30, 2025, while smaller companies will have until June 30, 2026.

Under the regulation, such products as palm oil, rubber and wood imported into the EU must not be sourced from areas that experienced deforestation after 2020, and importers must ensure full traceability. This initiative is intended to address Europe's responsibility for approximately 10 percent of worldwide deforestation.

Eight Amendments Introduced

The European Parliament introduced eight amendments to the regulation, designed to simplify the compliance process for businesses. The proposed updates require approval from the EU Council and the Commission and face criticism from environmental groups concerned that these amendments reduce the overall efficacy of EUDR.

Effects on Business  

If the new amendments gain approval, businesses operating in or sourcing from "no-risk" countries — a classification introduced for nations with stable and/or growing forests — might benefit from reduced regulatory constraints. However, critics argue that this could jeopardize the law's effectiveness in addressing global deforestation. Many environmental advocates have expressed concern that these changes may diminish the EU's leadership role in climate change mitigation and ecosystem preservation.

NAMM is monitoring the continually evolving regulatory framework and encourages business leaders to remain informed and adaptable as compliance demands may continue to change — and for stakeholders to stay engaged as the reworked legislation progresses through the EU's decision-making channels.  

References

European Commission. (2022). Legislative proposals and updates on deforestation regulation.  

European Parliament. (2023). Discussions and outcomes on the Deforestation Regulation amendments.  

Greenpeace. (2023). Environmental impact of EU policy changes on deforestation.