On 2 October 2024, the European Commission proposed a 12-month extension for implementing the EU Deforestation Regulation (EUDR). This postponement shifts the application dates to 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises. However, this extension requires approval from the European Parliament and the Council. The European Commission views this additional “phasing-in period” as a balanced solution to help global operators implement the regulation smoothly, while the core objectives and content of the law remain unchanged.
European Shippers’ Council has welcomed this proposal, highlighting its necessity amid ongoing concerns regarding the regulation’s implementation status. ESC members have expressed frustration over the lack of essential data for compliance, including the absence of the implementation act and the risk classification of countries. Without these crucial elements, responsible implementation has been deemed impossible.
To clarify the regulation’s application, the European Commission has published a comprehensive guidance document covering 11 chapters on legal requirements, timelines, agricultural use, and relevant definitions. This document aims to facilitate understanding among companies and enforcement authorities. In addition, the Commission has updated its FAQs, adding over 40 new answers to address questions from a wide range of stakeholders.
In terms of international cooperation, the Commission will classify countries based on risk levels – low, medium, or high – to help operators to navigate due diligence requirements effectively. Most countries are expected to be classified as low risk, allowing greater focus on those facing more severe deforestation challenges.
As for the Information System where businesses will register their due diligence statements, it is set to begin accepting registrations in early November and become fully operational by December. This additional year allows companies to establish and test their IT systems and processes. However, ESC remains cautious about the stability and connectivity of the Information System and emphasises the importance of a grace period to mitigate potential disruptions in logistics.