EU Announces Delay of EUDR
The EU recently announced a postponement of the EUDR. The EUDR was originally scheduled to take effect at the end of 2024. However, the European Commission has now announced a one-year postponement. Learn more about the background of this announcement in this article. that enter the European market must not have contributed to deforestation. The aim is to halt the ongoing damage to forests and deforestation, which will ultimately benefit climate protection and biodiversity. Approximately 20,000 German companies may be directly affected by the EUDR regulation.
What is the EUDR?
Over the past 30 years, the world has lost an area of forest larger than the land area of the European Union. At the same time, the EU is one of the largest importers of products such as soy, green coffee, and raw cocoa, all of which are linked to deforestation. As a first step, the EU therefore adopted the EU Timber Regulation ( EUTR) back in 2013 (implemented in Germany through the Timber Trade Safeguard Act, HolzSiG). This regulation is now being further strengthened as part of the Green Deal. This includes strict requirements for traceability and due diligence on the part of companies, covering the entire supply chain and imposing sanctions for violations. It makes no difference whether the forest in question is located outside the EU—for example, in Brazil—or within the EU—for example, in Braunschweig.
Unlike other due diligence laws, such as the LKSG, which focuses on the company and includes obligations to take action, the EUDR Regulation centers on products and monitors actions that have already been taken rather than targets. The EUDR is scheduled to take effect for large and medium-sized companies as of December 30, 2024, and will then be extended to all SMEs as of June 30, 2025. For more information on the EUDR, see our blog post.
Industry Calls for EUDR Delay
Trade associations such as the BVDM have strongly advocated for a postponement of the EUDR. Other EU partners have also criticized the regulation, noting that its practical implementation is difficult. They argue that tracking deforestation at the parcel level across forest areas worldwide along the entire supply chain is too challenging. The EU platform to which the data is to be uploaded will not go live until November 2024 at the earliest. This makes preparation difficult. This was one of the reasons why the Federal Ministry of Food and Agriculture (BMEL) had advocated for a postponement of the EUDR.
EUDR Postponement Announced
On October 2, the European Commission announced a one-year postponement of the EUDR. Accordingly, the regulation is set to take effect for the first companies on December 30, 2025, and will then be extended to June 30, 2026. To this end, an amendment to Article 38 of the regulation is required. The proposal also includes new guidelines, which were presented in early October and are intended to assist with implementation. The Council of the European Union has already approved the proposal. Industry associations and the Federal Ministry of Food and Agriculture (BMEL) welcome the decision and continue to call for a smoother implementation of the EU regulation.
What Happens Next Following the EUDR Delay
Before the EUDR extension can take effect, it must still be approved by the European Parliament. This is expected to happen in November 2024 at the earliest. Approval is considered likely. As an affected company, you should make the most of this extended preparation period now to gain an overview of your supply chain. The EUDR is only one part of the due diligence and reporting requirements adopted as part of the Green New Deal. Regulations such as the CSRD and CSDDD also entail far-reaching requirements. It is therefore clear that a low-risk and transparent supply chain is becoming increasingly important. We at CONSUST would be happy to advise you on implementing these laws. Contact us to schedule a no-obligation consultation.
