The EU Delays its Ban on Products Made via Deforestation
The European Commission has made a pivotal announcement: its Regulation on Deforestation-free Products (EUDR) enforcement will be delayed by a year.
For large enterprises, the regulation will now be applied from December 2025 onwards. Small businesses, however, will have until June 2026 to comply with the new rules.
- The European Union's (EU) EUDR will prohibit companies from putting products on the EU market unless they are deforestation-free and legally produced. It will also be illegal to export such products from the EU.
- The EUDR applies to wood, palm oil, soy, coffee, cocoa, rubber and beef as well as most of the products derived from these commodities like hides, leather, chocolate, charcoal, paper and printed paper.
This adjustment comes amid significant lobbying from within the EU, as well as from large exporting countries like Indonesia, who would be significantly affected by the policy.
The aim of the legislation is to ensure products like beef, coffee, soy and timber are acquired, grown and developed without the involvement of deforestation.
Specifically, the goods on sale must not come from land cleared of trees post-2020. The regulation will be pivotal for market entry into the EU, the world's largest trading bloc.
Mounting pressure and calls for clarity
It appears as though confusion was the main trigger for this delay, with lots of companies calling for clearer guidance and better foresight from the EU.
This comes after the EU sent companies some key compliance documents in the first week of October, just two months before the regulations were originally due to come into force.
Understandably, companies feel like this information ought to have been shared with them far earlier to aid preparation and planning.
The ambiguity of the whole situation spurred some EU member states and businesses to advocate for postponement, with Germany’s Chancellor, Olaf Scholz, calling for a six-month reprieve in September.
Exporting nations have also sought amendments, such as Indonesia, who claim that the law unfairly burdens small-scale farmers. They championed a more moderated approach for these producers in the regulation's infancy.
However, this postponement has drawn criticism for diluting climate action progress.
Human Rights Watch's senior environment researcher, Luciana Tellez Chavez, labelled the decision a “deplorable abdication of leadership in the face of a climate emergency".
Luciana stressed the indispensability of enforceable regulations to ensure corporate adherence to environmental safeguards and supporting climate, biodiversity and human rights efforts.
"The need for this law is as pressing as ever," she said.
A variety of responses to the announcement
The EU's delay has been criticised in environmental circles, too.
Mighty Earth’s Senior Policy Director, Julian Oram, sharply critiqued it, likening it to forsaking a lifeline in critical times.
He cautioned against the continued devastation of tropical forests, highlighting the risk to local communities, wildlife, and overarching climate objectives.
Despite the backlash, not all view the postponement negatively.
The Forest Stewardship Council (FSC) takes a brighter stance, interpreting the delay as an extended preparation period rather than a slackening resolve. They encouraged firms to leverage FSC solutions in anticipation of impending EUDR stipulations, underlining the urgency of forest preservation.
Meanwhile, industry voices like Adam Elman and Peter Horsten shared their takes online.
Adam said the move was "big (and not necessarily good) news."
Peter added: "But don’t be fooled by the extra time. This is not the time to sit back.
"The smartest players will use this window to strengthen their due diligence processes and take the lead on sustainability, rather than scrambling at the last minute."
Widening the lens: EU’s climate ambitions
Part of a grander scheme, the regulation contributes to the EU’s commitment to diminishing deforestation and degradation due to agricultural encroachment. T
argeting significant consumables like cocoa, rubber, and palm oil, it aspires to minimise the EU’s ecological footprint.
By championing “deforestation-free” goods, the EU anticipates a substantial reduction in carbon emissions, aligning with its climate and natural conservation targets.
Such initiatives resonate with the broader European Green Deal and the Farm to Fork Strategy, addressing deforestation's root causes.
Business-wise, this law mandates robust supply chain scrutiny, ensuring products entering the EU market are not linked to recent deforestation. This demands from businesses, particularly larger ones, demonstrable adherence to these new norms, gradually involving smaller players.
In sum, the EU’s bold move towards regulating deforestation-free products stands as a significant stride in tackling environmental challenges associated with global supply chains. Yet, its postponed execution has ignited a debate, leaving climate advocates apprehensive about potentially slowed momentum in critical climate action endeavours.
"The only way to force mankind to take action"
There is a feeling that the EU needs to maintain strong policy directives when it comes to sustainability.
Kevin Dunckley, CSO at HH Global reflects on how deadlines inherently sharpen the focus of companies and drive changes, even if they are delayed: "There has been an underlying feeling of business and the EU not being ready and of some parties hoping this all goes away.
"Supply chain mapping is now very front of mind due to this and other regulations incoming, which as we know is the only way to force mankind to take action."
******
Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024
******
Sustainability Magazine is a BizClik brand
******
