What is new in EUDR 2.0?
- The EU parliament votes on amending EUDR
- Two thirds of EU Agriculture Ministers call for “no-risk” category
- Changes to sanctions could be weakened, warn campaigners
- Nestle, Ferrero and Nestlé want to delay the launch of their products.
Nearly every day, there is a significant development that impacts the EU Deforestation Regulator (EUDR). The EU was urged in the past month to delay the enforcement of the EUDR by another year and change the benchmarking system.
Others disagree. Who is on which side and why as the debate gets heated?
The European Parliament amends EUDR legislation
In its present form, the EUDR is officially in danger.
The European Parliament rejected last Wednesday the benchmarking system of the Commission, which divides the countries into three different risk profiles – high risk, normal risk and low risk.
The vote, although non-binding on the Commission, signals a growing demand for it to review the legislation in order to add a “no risk” (or “negligible risks”) category.
Two-thirds (63%) of EU agriculture ministers want the law changed. The new regulations, they say, do not acknowledge the fact that many EU member countries (currently classified as “low-risk”) have forest protection laws in place and are at “negligible deforestation risk”. The group wants their category of risk to reflect this.
They wrote in a letter: “Instead focusing on deforestation, which is the most dangerous, this regulation places disproportionately high bureaucratic burdens on the countries where deforestation has been shown to be minimal.”
EUDR refresher
- EUDR’s goal is to eliminate deforestation in EU supply chains of at-risk products.
- Cocoa, palm oil and beef are among the commodities that have been affected.
- According to the current law, large and medium-sized operators and traders are required to comply with this regulation by 30 December 2020.
- Smaller and micro businesses have six months to prepare; however, they must comply with the law by June 30, 2026.
EUDR: Alarm raised about possible simplification
This motion raises at least two concerns.
First, in theory an ingredient or product linked to illegal deforestation can more easily be imported into the EU through a country that is deemed ‘no-risk’.
(Riekkinen/Image: Getty/Riekkinen) Environmentalists are worried that an EUDR simplified could make it easier to smuggle birchwood from Russia and Belarus in the EU. (Riekkinen/Image: Getty/Riekkinen)
Second, a category of ‘negligible risks’ could open a door for illegal Russian or Belarusian timber to be smuggled into the EU. The EU currently sanctions its entry but environmental activists are concerned that a simplified version would weaken the measures.
EUDR High-Risk Countries Revealed
China has been classified as a “low-risk” country. According to NGO Fern, under the proposed criteria it will likely be reclassified as a ‘no-risk’ country. This would mean a disaster for European wood manufacturers because they will continue to be in competition with Russian timber products that are routed via China.
What countries are interested in simplifying EUDR?
The agriculture ministers of 18 EU states are calling for a simplified EUDR. This would allow countries that have forest protection laws to mitigate the risk of deforestation, and be awarded a category called ‘no-risk’ or ‘negligible-risk’.
The countries are: Austria, Bulgaria (Croatia), Czech Republic, Estonia (Finland), Hungary, Ireland, Italy(Lettonia, Lithuania, Luxembourg), Portugal, Romania, Slovakia and Slovenia
Hannah Mowat, Fern campaign coordinator says: “Last Week MEPs Voted to Blow a Hole in European Sanctions against Russia.” Ironically, the EU’s decision to create a ‘no-risk’ category was the most risky thing it could have done with its sanctions.
EUDR has been delayed by 12 months but major brands are asking for more time
EUDR is not the only issue that has caused controversy. Many big food and beverage companies want the enforcement of deforestation laws to be delayed again.
The EUDR originally intended to come into force in December 2024. The EUDR was delayed and is now set to be enforced in December this year.
Mondelez International, the confectionery giant, recently made waves by calling for yet another delay of 12 months. Cadbury, Oreo and other confectionery makers are concerned that cocoa farmers continue to suffer after several failed harvests.
(Image: Getty/james kendi) The cocoa industry has been struggling in recent years, leading some to question whether the sector is ready for EUDR. (Image: Getty/james kendi)
Other have also joined the movement. Lavazza, a coffee maker, is asking for a year-long extension of EUDR enforcement. According to Reuters, the Italian coffee giant is concerned that implementation will hurt African and Central American producers and increase prices.
Not all companies that produce coffee or confectionery agree on the extension of deadline. Nestle, Ferrero and Tony’s Chocolonely, as well as Barry Callebaut, all want the EUDR in its current form. The companies do not want any delays, changes, or appeals. They are just “preparing responsibly in good faith” to enforce the EUDR later this year.
The decision to proceed or delay will have a significant impact on how Europe deals with global deforestation.