Brussels opens up to new simplifications on rules against deforestation. Slowing down their start

Brussels – Simplification. The watchword of Ursula von der Leyen’s second term at the helm of the European Commission is now being applied to the EU Regulation against Imported Deforestation (EUDR). After a setback a year ago, with the postponement of the implementation timeframe by one year—bringing the start to 30 December 2025 for large companies and 30 June 2026—now the Commission has proposed targeted solutions to solve the difficulties experienced by the IT system and simplify reporting requirements, especially for micro and small primary operators in low-risk countries worldwide.

For the European Commissioner for the Environment, Jessika Roswall, “the package meets the real implementation challenges. It simplifies the rules for small farmers and operators in particular, while maintaining Europe’s global leadership in combating deforestation.” “It is not about lowering ambition, but about making the rules work better and smarter, because effective implementation is important,” she explained.

The Deforestation Regulation of May 2023 stipulates that all companies concerned will have to exercise due diligence if they place palm oil, cattle, soya, coffee, cocoa, timber and rubber, as well as some of their derivatives (such as beef, furniture or chocolate) on the EU market, or export from it. In short, products that may have been obtained by deforestation or overexploitation of forest areas. This is an important milestone for EU climate action, given that the Food and Agriculture Organisation of the United Nations (FAO) estimates that 420 million hectares of forest—an area larger than the European Union—were lost due to deforestation between 1990 and 2020. In terms of net area loss (i.e. the difference between the forest area deforested and the new forest area planted or regenerated), the FAO estimates that the world has lost approximately 178 million hectares of forest cover over the same time period, an area three times larger than France.

In December 2024, the EU decided to postpone the implementation of the law by one year to give countries and companies more time to transpose and adapt to the rules. Now, on the other hand, the proposal is part of a simplification effort and arises from technical difficulties experienced by the IT system, which must handle a number of transactions and interactions projected to be much higher than expected. Therefore, the Commission’s proposal introduces targeted simplifications to reduce the obligations for both operators and traders who market the relevant EUDR products once they have been placed on the EU market—which may be, for example, retailers or large EU manufacturing companies, in other words, companies downstream in the relevant value chains, while the upstream operator will continue to exercise due diligence—and both micro and small primary operators from low-risk countries around the world who sell their products directly on the EU market: these represent almost 100 per cent of the EU’s farmers and foresters.

In particular, to enable a more efficient use of the IT system, the Commission proposes that downstream operators and traders will no longer be required to submit due diligence declarations. Thus, with this simplification, only one due diligence declaration will be required in the Eudr IT system at the point of market entry for the entire supply chain. Reporting obligations and liability would be concentrated on the operators who first place products on the market. To give an example, for cocoa beans, only one due diligence declaration would be required by the importer placing them on the EU market, but downstream producers of chocolate products would not be required to submit a new due diligence declaration in the IT system.

Furthermore, the Commission proposes transitional periods to ensure a smooth transition and to strengthen the IT system. This means that the EUDR will enter into force on 30 December 2026 for micro and small enterprises. For large and medium-sized enterprises, the date remains 30 December 2025, but to ensure a gradual introduction of the rules, they will benefit from a six-month grace period for checks and enforcement. “The new entry-into-force dates, coupled with the simplification of obligations for actors in the supply chain, aim to ensure that the IT system can support the expected level of load,” the Commission noted. In addition, the Commission is drawing up contingency plans so that economic operators can fulfil their obligations if this legislative proposal is not adopted in time by the co-legislators, Parliament and Council. A scenario that would bring the EUDR into force on 30 December this year. Therefore, the EU executive urges them to quickly adopt the proposed extension of the implementation period by the end of 2025.

For the European Commission’s Executive Vice-President for a Clean, Fair and Competitive Transition, Teresa Ribera, “this approach offers certainty and stability, simplifying the traceability process for micro and small producers who, while individually representing a minimal risk, collectively provide data that is essential for maintaining overall traceability.” In addition, Brussels offers “a clear timetable for implementation that ensures the seamless entry into force of the regulation from the end of this year, allowing large operators to adapt gradually and giving micro and small producers more time to adapt,” she concluded.

The fact remains that there is no peace for the law against deforestation.