EU Parliament Votes to Water Down the EUDR

The European Parliament has now voted to postpone the regulation by one year and to further water down the EUDR. The EUDR regulation requires European companies to ensure that certain products entering the European market have not 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. The EUDR was originally scheduled to take effect at the end of 2024. Find out what’s next for the regulation in this article.

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.

The postponement was announced as early as the beginning of October

After business associations, among others, had spoken out against the regulation, arguing that it would be difficult to implement in practice, the European Commission announced on October 2 that it would be postponed for one year . The Council of the European Union had already approved the proposal. All that was left was for the European Parliament to give its approval.

EUDR Watering Down Voted on in the European Parliament

The decision to postpone the regulation was to be made at the European Parliament session on Thursday, November 14. In addition to the European Commission’s proposal to postpone the Deforestation Regulation by one year, the EPP Group had tabled further amendments just a few days before the plenary session, though some of these were withdrawn shortly before the session began. One notable amendment is the introduction of a “zero-risk” category for certain countries. This would allow the European Commission to determine that affected companies are not required to conduct the mandated risk assessment for specific regions. Both the postponement and the amendment were adopted with the votes of the EPP and other political groups. The decision is controversial. Business associations welcome the move because it reduces bureaucracy. Environmental groups, however, are appalled and believe that loopholes and confusion are undermining the law’s actual purpose.

What’s Next After the EUDR Relaxation?

The Deforestation Regulation itself has already entered into force. However, before the EUDR amendments can be transposed into national law, further negotiations must take place between the parliamentary committees, the Council of Member States, and the Commission. An agreement is expected by the end of the year. If the changes are implemented as agreed, large market participants and traders will be required to comply with the obligations starting December 30, 2025. Micro and small enterprises will be given an additional year. As an affected company, you should make the most of this extended preparation time now to gain an overview of your supply chain. The EUDR is only one part of the due diligence and reporting obligations 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.