Statement: amfori Strongly Encourages EU Institutions to Prioritise an Effective Implementation of the EUDR

In view of the latest policy developments, amfori strongly encourages the EU institutions, particularly the European Parliament, to agree on the initial proposal by the EU Commission (Proposal) to delay the EU Deforestation Regulation (EUDR) by 12 months without further amendment of the original text.

amfori has closely followed the legislative process of the EU Deforestation Regulation (EUDR) from the start, engaging its members throughout the negotiations and supporting the implementation workstreams by the EU Commission and EU Member States for an effective application.  Since the adoption of the EUDR, companies within and beyond the amfori membership have made significant efforts to enhance their due diligence processes, and traceability systems and to equip themselves with available tools.

Whereas some important uncertainties remain, we believe that effective implementation of the EUDR should be prioritised at this stage of the process – supporting the progress achieved so far, providing further clarity and strengthening implementation support for companies, particularly through the dissemination of best practices, future iterations of the FAQ and additional training.

We are concerned that the reopening of the EUDR text for negotiations could hinder the good work conducted by many of our members towards deforestation-free supply chains and create further legal uncertainty for the business community.

What is happening?

The EUDR came into force on 29 June 2023 with the main objective to address EU-driven deforestation embedded in international supply chains, which accounts for approximately 10% of global deforestation, and provide a level-playing field for responsible companies to operate.

On 2 October, the EU Commission put forward a Proposal to delay the EUDR application date (30 December 2024) by one year. The proposal came as a response to concerns from industry actors, EU and non-EU countries that compliance with the legislation by the end of the year would not be possible due to remaining unclarities and a delay in the official guidelines meant to solve them.

The Proposal for a delay was accompanied by the long-awaited EUDR guidance and the third version of the FAQ, amongst other support materials.

For the Proposal to apply, it needs to be approved by EU Member States and the European Parliament first. On 14 November, the European Parliament approved the Commission’s Proposal and decided to put forward additional amendments to change the original EUDR text.

Instead of agreeing directly on the initial one-year delay, already approved by EU Member States on 16 October and reiterated on 20 November, the Proposal is now subject to interinstitutional negotiations (trialogues) for the Commission, EU Member States and the Parliament to agree on a final text. The next trialogue meeting is scheduled for Tuesday, 3 December.

With the EUDR application date fast approaching, there is a risk that the institutions might not be able to reach an agreement on time.

What do the amendments suggest?

The extra amendments mostly relate to creating an additional ‘no-risk’ category for the EUDR Country Benchmarking system where companies importing from no-risk countries would be exempt from due diligence (statement) obligations and providing geolocation. Instead, there would be limited information requirements and fewer controls.

Given the complexity of the Country Benchmarking system, the new amendments could complicate the interinstitutional negotiations and prevent companies from setting up their own internal systems for risk management until the main requirements and criteria are clear.

For further information about the EUDR and/or how to join the amfori Deforestation Policy Group, please contact Amanda Soler Guzman, Advocacy & Engagement Advisor at amanda.soler@amfori.org