EU Delays Controversial Anti-Deforestation Law By One Year Following Global Outcry

Last month, Brazil joined a growing group of nations in calling on the EU to delay the implementation of its highly-contested anti-deforestation law, warning it would have severe repercussions on their trade relations.

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The European Commission on Wednesday announced a long-sought proposal to delay in the implementation of a controversial anti-deforestation law in response to mounting pressure from global business partners and industry, who have been complaining about a lack of preparedness to comply with the new strict requirements.

Along with the delay, which it said will “in no way puts into question the objectives or the substance of the law,” the Commission also published additional guidance documents to “provide additional clarity to companies and enforcing authorities to facilitate the application of the rules.” The documents cover a wide range of issues, including legality requirements, timeframe of application, agricultural use, and clarifications on the product scope.

The European Parliament and European Council have time until the end of the year to adopt the Commission’s proposal for an extended implementation.

Originally set to kick off on 30 December, the EU Deforestation Regulation (EUDR) – the first of its kind in the world – was formally adopted last year to address the growing role of the bloc in advancing global deforestation. The 27-country bloc is responsible for importing products that account for approximately 13-16% of deforestation – and related emissions – associated with global trade.

Since its adoption, however, the law has been at the center of controversies, with industry and nations, both within and outside the EU, calling for a revision.

In a letter to the European Commission seen by Reuters, the Brazilian government last month said the law was an “unilateral and punitive instrument” that discriminates against countries whose economies rely on forest resources such as Brazil. Government calculations suggest the legislation could affect some $15 billion-worth of exports. According to Brazil’s Ministry of Development, Industry and Foreign Trade figures, Brazil’s exports of products covered by the law in 2023 amounted to $46.2 billion.

Nations including Colombia, Indonesia, and Malaysia have also criticised the rules, saying they are costly and burdensome and could end up excluding missions of poor, small-scale farmers from the bloc’s market. This is especially true for agricultural smallholders, which own 25% of agricultural land and produce roughly 30% of crops globally.

While the companies in charge of importing and exporting products through the EU market are ultimately responsible for ensuring sustainable production, the documentation process is often spread to primary and secondary producers by larger corporations. In order to meet the documentation standards and legal production requirements of the EUDR, smallholders will need significant support and more capacity. 

Countries have also warned that products are often hard to trace given that supply chains often span multiple countries, further complicating efforts to comply with the new rules. 

In April, then-European Environment Commissioner Virginijus Sinkevicius said the law will come into force at the end of 2024 as initially planned in response to calls by an Austria-led coalition of 20 of the 27 EU member states to review the law. They argued that the new rules would hurt European farmers, who are also subject to the new rules.

Critics have also warned that the regulation would disrupt the EU’s supply chains and push up prices.

Strict Requirements

The law cracks down on commodities linked to deforestation and forest degradation for agricultural expansion, targeting cattle, cocoa, coffee, palm oil, soya, and wood sold within the bloc. The six commodities accounted for over 50% of total deforestation between 2001-2015, with cattle accounting for the largest share. 

The main requirement of the EUDR is that commodities sold within the bloc are “deforestation-free.” This applies to both legal and illegal deforestation.

The law also stipulate that the production of covered commodities must meet local requirements of land use rights, environmental protection, forest-specific policy, labor laws, and the Principle of Free, Prior, and Informed Consent as laid out in the UN Declaration on the Rights of Indigenous Peoples. Either the company that is placing a product in the EU market or the one exporting a product from the EU must provide a statement of due diligence, containing information and results of supply chain assessments carried out for a product.

These requirements will apply to all products containing, or produced with, covered commodities. All products set for placement in the EU market or being exported from the EU must comply with all EUDR requirements. 

More on the topic: Explainer: All You Need to Know About the EU Deforestation Regulation 

Reactions

The announcement was met with criticism from environmentalists and international organizations.

Stientje van Veldhoven, Vice-President and Regional Director for Europe of World Resources Institute (WRI), called the delay “disappointing” and warned it “sends the wrong signal to national governments, both within and outside the EU, as well as to business partners, suggesting that the creation of a deforestation-free commodity market can wait.”

“While we recognize the challenges the regulation poses for some producing countries, particularly for smallholder farmers, the focus should have been on easing implementation and ensuring greater support for tropical-producing nations. Most disappointing is the push from EU countries to delay enforcement, despite having more technical and financial resources to establish supply chain monitoring and traceability,” said van Veldhoven.

Both Human Rights Watch and Greenpeace said delaying the law means allowing deforestation and human rights violations to persist for at least another year, and urged the Parliament and Commission to reject the proposal.

European Greens leader Bas Eickhout echoed a similar sentiment earlier this year. In an exclusive interview with Earth.Org in April, Eickhout called the U-turn on the policy of some European countries “ridiculous,” and a “failure of the Commission.” 

“This is what you get when you don’t have a long-term vision. The credibility of Europe is at stake. What we have been trying to do with this deforestation law is to make clear that these European industries should not only do green policies within Europe but they also have a global responsibility… they need to be credible in the rest of the world,” he said.