The EUDR saga is going to take a break. On December 4, 2024, the European Parliament and the Council reached a political agreement on the Commission’s proposal to grant a 12-month additional phasing-in period.
The EU Deforestation Regulation (EUDR) aims to ban the import and sale of products linked to deforestation or forest degradation on the EU market. It targets key raw materials such as cocoa, coffee, soy, beef, palm oil, rubber and wood, as well as their by-products such as leather and furniture.
EUDR’s journey has not been a smooth one. Coming into force in June 2023, it was due to apply on December 30, 2024 for large companies and six months later for SMEs. Intensive lobbying by countries such as Brazil and Germany and delays in preparing for implementation led the Commission to propose a one-year postponement.
This reopened the Pandora’s box of the legislative process, as Parliament and the Council had to agree to the postponement. The Council quickly approved it. For its part, the Parliament took advantage of the situation to propose two years’ postponement instead of one, and amendments that risked emptying the legislation of its substance. One of the most controversial amendments was the introduction of a category of “risk-free” countries, exempting them from compliance controls. This created an incentive for circumvention, allowing products from high-risk countries to enter Europe via a “risk-free country”.
On November 20, the Council stood firm and rejected the Parliament’s amendments, paving the way for the trilogues (negotiations between the Commission, Council and Parliament) and the conclusion of the December 4 agreement. The EUDR will therefore apply from December 30, 2025 for large companies and from June 30, 2026 for SMEs.
Samuel Poos, project manager of the Trade for Development Centre at Enabel