On Apr. 20, EP said companies must produce due diligence statement.
EP adopted law to fight climate change and biodiversity loss, obliging companies to ensure products sold in the EU have not led to deforestation and forest degradation.
Follows EP Dec. 2022 preliminary deal with EU CNCL on law on deforestation-free products obliging companies to verify, issue a due diligence statement, see #143084.
Background
An area larger than the EU was lost to deforestation between 1990 and 2020.
EU consumption caused around 10% of losses; cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper products are covered by the new rules.
Human rights and the rights of indigenous people added as additional requirements.
Overview
No country/commodity will be banned, companies can only to sell products in EU if product supplier issues so-called due diligence statement confirming product does not come from deforested land, or that it led to forest degradation, after Dec. 31, 2020.
Companies will also have to verify products comply with relevant law of the country of production, including human rights, and indigenous people's rights respected.
Covers products including cattle, cocoa, coffee, palm-oil, soya and wood.
Including products that contain, have been fed with or have been made using these commodities, e.g. leather, chocolate, furniture, per the original EU CMSN proposal.
Risk-based Controls
EU CMSN will classify countries, or parts thereof, as low-, standard- or high-risk based on objective, transparent assessment within 18 months of this law entering into force.
Products from low-risk countries will be subject to a simplified due diligence procedure.
The proportion of checks is performed on operators according to the country’s risk level: 9% for high-risk countries, 3% for standard-risk and 1% for low-risk.
Competent EU authorities will have access to relevant information provided by the companies, such as geolocation coordinates, and conduct checks with help of satellite monitoring tools, and DNA analysis to check where products come from.
Penalties for non-compliance shall be proportionate and dissuasive, maximum fine must be at least 4% of non-compliant operator or trader's total annual EU turnover.
Next Steps
The text must next be formally endorsed by the EU CNCL; it will then be published in the EU Official Journal and enter into force 20 days after publication in the OJ.
EU is a large consumer and trader of commodities, products that play a substantial part in deforestation; rules aim to ensure EU’s consumption, trade of commodities and products don't contribute to deforestation and further degrading forest ecosystems.
Regulation will be published in EU’s Official Journal and enter into force 20 days after.
Jun. 2, 2023 Final Adopted Text
On Jun. 2, 2023, EU CNCL issued final adopted text of regulation dated May 31, 2023.
Regulation shall enter into force on twentieth day following that of its OJ publication.
Subject to the below exception, Articles 3 to 13, Articles 16 to 24 and Articles 26, 31 and 32 shall apply from 18 months after the entry into force of the regulation.
Except as regards the products covered in the Annex to Reg 995/2010, for operators that by Dec. 31, 2020, were established as micro-undertakings or small undertakings pursuant to Article 3(1) or (2) of Dir 2013/34/EU, respectively, the Articles referred to above shall apply from 24 months after the entry into force of the regulation.
Jun. 9, 2023 Official Journal
On Jun. 9, 2023, EU CNCL issued final EUDR Reg 2023/1115 in the EU Official Journal.
Regulation shall enter into force on 20th day following OJ publication, Jun. 29, 2023.
Articles 3 to 13, Articles 16 to 24, Articles 26, 31, 32 shall apply from Dec. 30, 2024.
Except as regards products in the Annex to Reg 995/2010, for operators that by Dec. 31, 2020, were established as micro-undertakings or small undertakings pursuant to Article 3(1) or (2), Dir 2013/34/EU, respectively; they shall apply from Jun. 30, 2025.
Dec. 8, 2023 New Observatory Tool
On Dec. 8, 2023, EU CMSN published tool to support EU's new rules on deforestation-free products, established to ensure products placed on or exported from EU market do not come from deforested land and have not contributed to forest degradation.
Building on existing monitoring tools, eg. Copernicus satellite data, Observatory will facilitate access to supply chain information for public bodies, consumers, businesses.
Presents maps and data on changes in world's forest area and associated factors, such as deforestation, logging, forest fires, extreme events, insect defoliation, as well as an overview of the distribution of tree species; it also contains statistics on trade flows, data on the quantities produced and the areas harvested in each producing country.
Dec. 18, 2023 Deforestation Information System
On Dec. 18, 2023, EU CMSN announced launch of pilot testing of the Deforestation information system, key step to operationalise the EUDR: system will help operators, traders, competent authorities, customs submit and process due diligence statements.
Once the EUDR is fully in force, such statements will serve as proof that products are deforestation-free and can therefore be placed on the EU market or exported from it.
In Oct. 2024, EU CMSN issued guide, FAQs to strengthen support for deforestation reg implementation, also proposed extra 12 months of phasing-in time, see #228608.
