The European Parliament has voted to delay the implementation of the EU Deforestation Regulation (EUDR) by 12 months, moving the enforcement date to December 2025. This decision follows the European Commission’s proposal for a postponement, citing the need for additional preparation time for stakeholders.
Notably, the Parliament’s amendments introduce a “no-risk” category for specific countries, potentially reducing compliance checks for imports from these nations.
Potential Ramifications of the ‘No-Risk’ Category:
- Reduced Compliance Scrutiny: Countries classified as “no-risk” may face fewer due diligence requirements, potentially allowing products linked to deforestation to enter the EU market without thorough verification.
- Market Distortion: This classification could create an uneven playing field, disadvantaging producers in higher-risk countries who must adhere to stricter standards, potentially leading to trade imbalances.
- Environmental Concerns: If the “no-risk” designation is not based on robust, transparent criteria, it may undermine the EUDR’s objective to combat global deforestation, as products from these countries might not be adequately vetted.
- Diplomatic Implications: Countries not classified as “no-risk” may perceive the designation as discriminatory, potentially straining trade relations and leading to disputes within international trade forums.
In summary, while the introduction of a “no-risk” category aims to streamline compliance, it carries significant risks that could compromise the effectiveness of the EUDR in addressing deforestation and maintaining fair trade practices.
The amendments are to be fully ratified and at present, we are advising clients to carry on with due diligence efforts based on the original meaning in the EUDR. For further information please contact emma@envirosenseltd.co.uk