EU Deforestation Law: An Update

Introduction 

Deforestation and forest degradation are among the main drivers of climate change and biodiversity loss, the two key environmental challenges of our times. The United Nations Food and Agriculture Organization estimates that 420 million hectares of forest, an area larger than the European Union, were lost to deforestation between 1990 and 2020. The Intergovernmental Panel on Climate Change estimates that 23% of total greenhouse gas emissions (2007-2016) come from agriculture, forestry and other land uses.

The EU Deforestation Regulation (EUDR) establishes rules to ensure that commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber, and their derived products, including leather, chocolate, tyres, or furniture  that are placed on the EU market or exported from the EU have not caused deforestation or forest degradation during their production, have been produced in accordance with the relevant legislation of the country of production, and are covered by a due diligence statement. An earlier overview of the EUDR is available here.

Postponed application of the EUDR 

The EUDR has been in force since 29 June 2023 and its provisions were to be applied from 30 December 2024. However, on 3 December 2024, the Council reached a provisional agreement with the European Parliament on a proposed targeted amendment of the EUDR, by which its date of application was postponed by 12 months, ie, to 30 December 2025. 

The provisional agreement will have to be endorsed by the Council and Parliament. It will then be formally adopted by both institutions and will be published in the Official Journal of the EU, so that it can enter into force before the application date of the current regulation (30 December 2024).

This postponement is intended to provide legal certainty, predictability and sufficient time for the smooth and effective implementation of the rules, including establishing due diligence systems that cover all relevant commodities and products sold in the EU or exported from the EU.

No changes in terms of substance

According to the provisional agreement, the amendment will not affect the substance of the existing rules. It had been anticipated that the EUDR might be amended to introduce a “no risk” category, whereby companies operating in countries where there was no deforestation would be exempted from the EUDR. However, EU lawmakers have not proceeded with this proposed change.

Publication of Commission guidelines on the EUDR 

Article 15 of the EUDR provides that the Commission may develop guidelines to facilitate harmonized implementation of the EUDR. In November 2024, the Commission published a Guidance Document for Regulation (EU) 2023/1115 on deforestation-free products.

The guidance document is not legally binding; its sole purpose is to provide information on certain aspects of the EUDR. It does not replace, add to or amend the provisions of the EUDR. The guidance document is, however, useful reference material as it further clarifies dedicated parts of the legislative text, as a guide operators and traders.

The guidance document is also intended to guide national competent authorities and enforcement bodies as well as national courts in implementing and enforcing the EUDR. Hence, it can be expected that the Department of Agriculture, Food and the Marine, which is the designated competent authority for the implementation of the EUDR in Ireland, as well as the Irish courts, will have recourse to the guidance document. 

Publication of Strategic Framework

Finally, Article 30 of the EUDR foresees strong international cooperation and engagement based on a dedicated strategic framework to facilitate the implementation of the EUDR, fulfil its objectives and ensure a transition towards deforestation-free and legal supply chains. In November 2024, the Commission published its Strategic Framework for International Cooperation.

Engagement

The objective of the Strategic Framework is to support, in partnership with countries and stakeholders across the globe based on a number of established principles and across relevant value chains, efforts to jointly address the root causes of deforestation and forest degradation, within the scope of the EUDR, but also beyond.

For more information please contact John Gaffney or your usual Beauchamps contact.