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EU Regulation on Deforestation-free products
EU regulation on the prevention of further deforestation From Wikipedia, the free encyclopedia
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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] Further, the intended effects of the EUDR could potentially be diluted due to trade reallocation effects, particularly when the EU’s market share is relatively small in global trade—for example, in the case of soy [11].
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.[12] 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.[13]
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WTO cases
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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.[14]
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References
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