European Commission reveals future of EU deforestation regulation
Policymakers stick to December deadline, but remove leather, add soap, and make life easier for downstream operators and traders
The European Commission has announced a number of changes to the EU’s deforestation regulation (EUDR) following a review that concluded last week.
In a raft of documents published on Monday, policymakers revealed they would not reopen the law despite pressure from some businesses and governments, and the December deadline remains in place for the first companies to comply.
However, it has lightened requirements for some entities, including smaller firms.
“It just became much easier for traders and downstream operators to fulfil the EUDR,” explained Sebastian Rünz, a lawyer at Taylor Wessing, referring to businesses that buy imported materials to sell or turn into different products.
“Now they basically just have to collect some data from the operator – in particular the reference number that shows products are EUDR compliant – and register online.”
For the entities that first place the product on the EU market, known as operators, Rünz says “everything stays more or less as it is, meaning they still have a lot of obligations to fulfil”.
The changes were outlined in a list of Frequently Asked Questions (FAQ), which serves to explain how the existing law should be interpreted.
“A draft Delegated Act has also now been published, which will revise the scope of EUDR,” noted fellow Taylor Wessing lawyer, Louis Warnking.
The regulation has been expanded to cover more products, including soap that contains palm oil, and instant or soluble coffee.
“It’s a very important update for companies who trade such products, because they might not have been in scope before, but now they appear to have been told they’ve got six months to comply with EUDR,” Warnking told Real Economy Progress.
Meanwhile, the Commission has removed leather from the scope of the law, following arguments that it doesn’t directly drive deforestation.
It has also clarified how the rules apply to e-commerce and tyres made from reused materials.
The proposed Delegated Act is open for feedback until June 1st, and webinars on the latest updates are available here and here.