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Home » EUDR Deforestation Deadline Hits Global Supply Chains

EUDR Deforestation Deadline Hits Global Supply Chains

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EUDR Deforestation Deadline Hits Global Supply Chains

Here’s what it means, in plain terms: the deforestation deadline that global supply chains spent 2024 bracing for was pushed back this month by a year. The EU Deforestation Regulation, known as EUDR, was originally set to apply from 30 December 2024. After protests from governments inside and outside the bloc, European negotiators agreed in early December on a 12-month postponement that leaves the rules themselves intact.

The law is straightforward to describe and brutal to comply with. Anyone placing cattle, wood, cocoa, soy, palm oil, coffee or rubber on the EU market must prove the goods did not come from land deforested after 31 December 2020. Importers trace supply chains for coffee, chocolate, leather, paper, tires and furniture; failure can bring fines of up to 4% of turnover. Think of it like a receipt for every field. Adopted by the European Parliament in December 2022 and in force since June 2023, the regulation repealed the old EU Timber Regulation and, by the Commission’s own accounting, is meant to cut emissions linked to the covered goods by at least 32 million tonnes a year.

The pressure came from all directions. Supplier countries objected loudly; “it’s not up to Europe to tell us not to deforest”, Indonesia’s coordinating minister of economic affairs, Airlangga Hartarto, said earlier in the year. The European Coffee Federation warned a hard deadline would be “shattering, not least for the millions of smallholder producers for whom the EU is a significant marketplace.” Agriculture ministries from Austria and Finland to Italy, Poland and Sweden asked for the delay. The Commission had long insisted the date was “binding on the Commission as it is on companies,” but in October it proposed the postponement itself, conceding the practical gap: its online tools for due diligence statements and country risk ratings were not fully operational.

Environmentalists put a number on the cost. Tropical forest loss worldwide ran to some 37,000 square kilometers in 2023, an area nearly the size of Switzerland, and EU studies suggested a year’s delay could add about 2,300 square kilometers. “I simply find it irresponsible to delay this law by another year in this situation,” said Green MEP Anna Cavazzini. Lead negotiator Christine Schneider saw it differently: the extra year “means businesses, foresters, farmers and authorities will have an additional year to prepare.”

Some were ready regardless: Ivory Coast now tracks beans with electronic farmer ID cards, Ghana has mapped its cocoa, and Nestle, Mars Wrigley and Ferrero openly opposed postponement. The practical upshot is a race to finish the platform and country benchmarking before the new date arrives.

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