European Commission proposes one-year delay to implementation of EU Deforestation Regulation

Following pressure from global partners and stakeholders about the imminent entry into effect of the EU's 2023 regulation requiring that certain products sold in the EU be 'deforestation-free', the European Commission has proposed a delay of 12 months to the implementation and issued guidance to offer additional support. The delay needs to be approved by the European Parliament and Council.

What is the EU Deforestation Regulation?

The EU Deforestation Regulation ("EUDR") requires seven commodities and certain products derived from those commodities to be "deforestation-free" if they are placed or made available on the EU market or exported from it. Those companies or traders wishing to market the in-scope products in the EU, or export them from the EU, are required to complete extensive due diligence on their supply chains or face penalties.¹

What would this delay mean in practice?

Under the current text, 30 December 2024 is the date by which relevant commodities and products being marketed in (or exported from) the EU must be 'deforestation-free'² and operators and traders must also respect certain due diligence obligations.³ The Commission has faced significant pressure from global partners and stakeholders regarding the feasibility of compliance with this application date. Stakeholders repeatedly expressed that more time is needed to prepare, especially given the novel obligations included in the due diligence requirements.

The new Proposal for a regulation to amend the EUDR does not change the substantive rules laid down in the EUDR but postpones their date of application by 12 months.⁴ If approved, the change would delay the application of these obligations for large companies until 30 December 2025 and until 30 June 2026 for micro-undertakings or small undertakings.⁵

Additionally, the Proposal postpones the obligation imposed on competent authorities to carry out the necessary checks and customs controls.⁶

The Proposal would also adjust the repeal of the current EU Timber Regulation to account for the delay in the implementation of the EUDR.⁷

However, the Commission has indicated that the Information System where businesses will register their due diligence statements will be ready before the law's entry into application so that operators and traders can submit statements earlier.⁸

A (shorter) delay for the Commission to assign risk profiles to countries and regions

The classification of countries or regions is important for operators as the scope of due diligence will vary based on the risk category. Those considered "low risk" would be afforded a simplified due diligence procedure detailed in the EUDR.

The Commission has also proposed to delay the classification of countries or regions as low or high risk. The proposed delay is until 30 June 2025,⁹ a 6-month delay from the current date included in the legislation as adopted.

The Commission has highlighted that this shorter delay is important to provide operators and traders with the information well in advance before their due diligence obligations generally start to apply on 30 December 2025. Further clarification on key concepts

In addition to the proposed delay to the implementation of the EUDR obligations, on 2 October 2024, the Commission published further Guidance on the EUDR¹⁰ and updated the Commission's Frequently Asked Questions.¹¹

The Guidance clarifies the definition of key concepts important to EUDR compliance such as "placing on the market", "making available on the market", "export", "operator", "negligible risk", "complexity of the supply chain" or "agricultural use". It also covers areas such as the product scope, the due diligence obligations or certifications and third-party verifications.

Next Steps

The Proposal needs to be formally approved by the Parliament and Council, and then published in the EU's Official Journal. Only then will the delay be reflected in the legal texts. If the Parliament and Council simply approve the proposal, the delay to implementation will take effect quickly. If either institution seeks to use the Proposal to make other amendments to the EUDR, this could impact the timing and of course the contents of the EUDR, such as its scope or the specific content of the obligations.

Emma Pessotto (Legal Trainee, Brussels), Antonio Fuentes Máiquez (Legal Trainee, Brussels) and Ruth Benbow (Knowledge Manager, London) contributed to the development of this publication.

_{1 For further details on the rules, obligations and penalties outlined in the EUDR please see our previous client alerts: 10 key things to know about the new EU Deforestation Regulation | White & Case LLP (whitecase.com) and EU adopts new rules for deforestation-free products | White & Case LLP (whitecase.com).
2 Article 3 of Regulation 2023/1115 ('EUDR').
3 Article 4 to 13 EUDR.
4 Page 3 and Recital 6 of Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2023/1115 as regards provisions relating to the date of application ("Proposal"), available here.
5 Amendment 3 of Proposal.
6 Amendment 3 of Proposal; Articles 16 and 26 EUDR.
7 Amendment 2 of Proposal. 
8 See Commission press release here: EU Deforestation Regulation implementation (europa.eu)
9 Amendment 1 of Proposal. 
10 Guidance on EU Deforestation Regulation, available here.
11 Frequently Asked Questions – Implementation of the EU Deforestation Regulation, available here.}

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