European Parliament votes on EUDR amendments amid procedural challenges
The European Parliament held a decisive vote on the proposed amending regulation to the EU Deforestation Regulation (EUDR), marking another turn in the developing saga of the European Union’s ongoing efforts to eliminate deforestation within commodity supply chains.
The vote on 14 November, however, was not without drama. Several amendments that had been tabled to the European Commission’s proposal were withdrawn just prior to the vote, and voting issues arose during the session itself. Ultimately, the Parliament adopted the original proposal from the European Commission, supplemented by several amendments from the European People’s Party (EPP).
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Key changes approved by the Parliament
In adopting the European Commission’s proposal, the European Parliament confirmed its approval of the proposed new timeline for EUDR enforcement. Adding one year to some key dates, the regulation would now be enforced for most operators starting 30 December 2025. However, for many small and micro-enterprises, compliance would be required beginning 30 June 2026.
Additionally, the vote set a new deadline for the European Commission to publish its Country Benchmarks by 30 June 2025. The Country Benchmark system, described in Article 29 of the EUDR, seeks to categorise countries based on deforestation risk levels. Countries may be categorised as High, Standard or Low Risk.
Potential issues arise, however, in relation to the amendments by the EPP which were not withdrawn and were subsequently adopted by the European Parliament. These amendments introduced new provisions for a fourth risk category within the Country Benchmark classification system, termed ‘no risk’. The ‘no risk’ classification would apply to countries where forest areas have remained stable or increased since 1990, where the country is a signatory to the Paris Agreement and other international human rights conventions, and where national regulations are strictly enforced and monitored.
Operators sourcing from ‘no risk’ countries would be relieved from much of their due diligence obligations. They would only need to maintain minimal documentation, such as product type, quantity, country of origin, and supplier details, which must be available upon request. Additionally, it appears they would not need to make available geolocation data. Furthermore, compliance inspections by Competent Authorities would be reduced to 0.1% of operators for “no risk” countries.
Concerns about the amendments
Despite the intent of the amendments to ease the burden of the regulation on the private sector, the introduction of the ‘no risk’ category, has raised widespread concerns about a significant weakening of the EUDR and its potential overall effectiveness. Stakeholders perceive potential negative consequences if the amendments were to become law.
Next steps in the process
The legislative journey isn’t over yet, and little can be concluded from today’s vote alone. The adoption of the amendments by the Parliament prevents a rapid conclusion of the legislative process. It raises concerns about whether the legislative process can be concluded at all before the end of 2024 when the EUDR in its current form will become applicable to companies.
This round of amendments requires the process to move to ‘trilogue’, where the European Commission, Council and Parliament will work towards a compromise on the final regulation text, although the exact next steps are not clear. However, if trilogue does not conclude on time, the EUDR will revert to its original deadlines, with most companies required to comply by 30 December 2024.
In light of the regulatory changes, Preferred by Nature advises stakeholders to stay informed and continue to monitor the progress of the EU institutions on this matter. Despite issues arising around the regulation, stakeholders are encouraged to continue their efforts to eliminate deforestation risks from their supply chains. Strengthening due diligence efforts now will ensure that businesses are fully prepared for whatever the final shape the EUDR will take, as it will continue to play a crucial role in reducing global deforestation.
Preferred by Nature remains committed to supporting stakeholders in understanding and meeting their obligations under the EUDR, contributing to sustainable practices and forest preservation worldwide.
For more information on the EUDR, visit our dedicated webpage.
Featured image via streaming of the plenary session
