EU Parliament called for major changes to deforestation regulation

Yesterday, November 14, 2024, the EU Parliament met to vote on the EU Commission’s proposal to postpone the entry into application of the EU Deforestation Regulation (EUDR) by 12 months. The Parliament endorsed the Commission’s proposal.

According to the Commission’s original proposal, it does not change the substance of the rules, but only postpones their date of application by 12 months.

The EU Parliament went a step further, not only approving the proposal to extend the EUDR’s application dates, but also calling for significant changes to the landmark legislation, complicating a plan to delay the controversial rules before they take effect on December 30, 2024.

EPP withdrawal of some amendments

The proposal for amendment was put forward by the European People’s Party (EPP), the biggest political party. The EPP proposed a total of 15 amendments to the EUDR. Just before the vote, the President of the Parliament announced that the EPP had withdrawn 6 amendments (Amendments 1, 2, 8, 13, 14, 15). These include a proposal to postpone the EUDR for 24 months instead of the 12-month extension in the Commission’s original proposal. It also withdraws the proposal to eliminate all due diligence requirements for non-SME traders.

Highlights of the major amendments adopted by the European Parliament: 

Amendments that were voted on and adopted by the Parliament include: 3, 4, 5, 6, 7, 9, 10, 11. Amendment no. 12 was rejected. Here are some key highlights of the amendments adopted by the Parliament:

1. Create a new risk category: 4-tier risk system instead of 3-tier

The Parliament is now suggesting creating a “no risk” category of origin countries for which operators will have much lighter obligations. The risk categories now include “no risk”, “low risk”, “standard risk”, and “high risk”.

The term “no risk” refers to countries or parts of countries that meet the following assessment criteria:

• Forest area development has remained stable or increased compared to 1990;
• The Paris Climate Agreement and international conventions on human rights and deforestation prevention are signed by these countries or parts of countries;
• Regulations regarding deforestation prevention and forest conservation are strictly implemented at the national level, transparently, and are monitored.

2. Minimal to almost no due diligence obligations for the “no risk” category

The shipment from “no risk” country is not required to provide geolocation, proof that the products were produced in accordance with national laws and are deforestation and degradation free. The level of control by competent authorities for shipments from “no risk” countries is set to be only 0.1% compared to 1% for “low risk”, 3% for “standard risk” and 9% for “high risk” countries as mandated by the EUDR.

3. Further delays if the Commission is failed to meet the deadline

The Commission is required to publish the risk classification at least six months before the implementation of the EUDR, otherwise the regulation should be postponed accordingly.

The Commission is also asked to prioritize the optimization of the platform for the exchange of information between relevant stakeholders and competent authorities in order to avoid delays.

What does it mean?

The vote sets in motion a lengthy process to amend the regulation, which was originally scheduled to take effect on December 30. It will require negotiations between representatives of the Council, the Parliament and the EU Commission to iron out the final shape of the measure.

What happen next?

In a normal legislative setting, the Parliament would now negotiate with EU Member States for a final outcome. They must reach an agreement by December 30, 2024, if they fail to reach an agreement before the deadline, the EU Deforestation Regulation risks being implemented without any changes at all.

However, the European Commission still has the right to withdraw its proposal, given the Parliament went beyond what was required.

Remark:

With this action, the European Parliament paved the way to sabotage the groundbreaking deforestation law and damaged EU’s reputation for its leading role in fighting against deforestation and climate change, and its effort to move forward a circular and green economy.

Details about the proposed amendments of the Regulation (EU) 2023/1115 from EPP can be found here