EU Regulation on Deforestation-free products

Regulation (EU) 2023/1115
European Union regulation
Text with EEA relevance
TitleRegulation on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010
Made byEuropean Parliament and Council of the European Union
Journal referenceL150, 9 June 2023, p. 206–247
History
Date made31 May 2023
Implementation date30 December 2024
Other legislation
ReplacesTimber Regulation 2010
Current legislation

The EU Regulation on Deforestation-free products (Regulation (EU) 2023/1115, abbreviated EUDR) is a European Union regulation on deforestation. The goal of the EUDR is to guarantee that the products European Union (EU) citizens consume do not contribute to deforestation or forest degradation worldwide.[1]

The EUDR is a part of a bigger set of EU policies aimed at fighting climate change and biodiversity reduction, as codified in the European Green Deal. It supersedes the Timber Regulation 2010.[1][2] It was formally adopted in May 2023 and applies to products placed on the market from 30 December 2024 by medium or big businesses and from 30 June 2025 by small businesses.[3]

The regulation applies to operators who either place on the EU market or export from it, a specific set of commodities or products: palm oil, cattle, soy, coffee, cocoa, timber and rubber, as well as derived products such as beef, furniture, and chocolate.[4] Businesses must carry out due diligence to ensure the products do not come from land that was deforested after 31 December 2020.[4] This includes collecting the geographic coordinates of the plots of land where the commodities were produced.[5] Commodity production must also comply with the laws in the country where they were produced.[4] Operators who cannot provide the required information must refrain from placing their products on the EU market. Those who do anyway face fines up to 4% of their EU turnover.[5][6]

Reception of the regulation has been mixed. The Economist listed it as one of their top 5 sustainability wins for 2023.[6] The New York Times reported it being hailed as "gold standard in climate policy".[7] Greenpeace called it the EU's "big first step" to end its complicity in the "reckless destruction" of forests.[8] Various exporting countries have protested and warned the EU of severe economic impacts.[2] In the coffee sector, by December 2023 traders were reported to have already started to shift activities away from African countries where many of the world's smallholder farmers reside.[9][10]

In October 2024, Following pressure from global partners and stakeholders about the imminent entry into effect of the regulation the European Commission has proposed a delay of 12 months to the implementation and issued guidance to offer additional support.[11] In a joint statement on 6 November 2024, Nestlé, Michelin and more than 50 other companies have said the EU’s decision to delay its deforestation law is causing uncertainty across business and putting investment at risk.[12]

WTO cases

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Aerial view of a palm oil plantation in Malaysia, showing oil plants and a processing plant
Palm oil plantation in Malaysia

Malaysia and Indonesia filed complaints against the EU at the World Trade Organization (WTO), claiming the EUDR to be discriminatory. The WTO decided Malaysia’s complaint, filed in January 2021, in favour of the EU in March 2024. While the WTO noted that the EU unjustifiably discriminated against Malaysia in the formulation of its policy, it maintained that the EU had the right to introduce rules against the import of crop-based fuels for environmental reasons. The EU thus does not need to withdraw the EUDR, but must adjust it to make it less discriminatory.

Indonesia's complaint, about biodiesel, was filed in August 2023 and retracted one day before the verdict in Malaysia’s case was published. The two cases had been handled by the same WTO panel, and the verdict expected to be revealed at the same time.[13]

References

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  1. ^ a b "Regulation on Deforestation-free products". European Union. Retrieved 24 July 2024.
  2. ^ a b "EU delays stricter rules on imports from deforested areas". Financial Times. Retrieved 24 July 2024.
  3. ^ "Statement: Landmark European Union Deforestation Regulation is Formally Adopted, Will Enter into Force". World Resources Institute. Retrieved 24 July 2024.
  4. ^ a b c "Deforestation Regulation implementation". European Union. Retrieved 24 July 2024.
  5. ^ a b "Due Diligence". European Union. Retrieved 24 July 2024.
  6. ^ a b "Top 5 sustainability wins in 2023". The Economist. 20 December 2023. Retrieved 24 July 2024.
  7. ^ Cohen, Patricia. "Can Europe Save Forests Without Killing Jobs in Malaysia?". The New York Times. Retrieved 24 July 2024.
  8. ^ "EU to adopt new deforestation law". Greenpeace. 13 April 2023. Retrieved 24 July 2024.
  9. ^ Angel, Maytaal; Kurniawati, Dewi (19 December 2023). "Coffee firms turning away from Africa as EU deforestation law looms". Reuters. Retrieved 24 July 2024.
  10. ^ Ghaedi, Monir (28 January 2024). "EU deforestation law means uncertainty for African coffee". Deutsche Welle. Retrieved 24 July 2024.
  11. ^ "European Commission proposes one-year delay to implementation of EU Deforestation Regulation | White & Case LLP". www.whitecase.com. 10 October 2024. Retrieved 7 November 2024.
  12. ^ Hancock, Alice (6 November 2024). "Europe's chocolate groups lead opposition to EU deforestation law delay". Financial Times. Retrieved 7 November 2024.
  13. ^ "Palm Oil Powerhouses: Why the EU's Deforestation-Free Regulation Does Not Work in Southeast Asia | New Perspectives on Asia | CSIS". www.csis.org. Retrieved 31 August 2024.
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