The EU institutions agreed on postponing the application of the EUDR, the Regulation on Deforestation-Free Products 

On 17 December 2024, the European Parliament in plenary session confirmed the agreement reached with the Council on the European Commission's proposal to postpone the application timeline of the EUDR (Regulation (EU) 2023/1115) by one year. This brings an end to the uncertainty that followed the November vote, when EU lawmakers voted not only in favour of the postponement but also added some substantial changes on key provisions of the regulation. These amendments have been withdrawn by the European People's Party (EPP), including the one on the creation of a new "no risk" category of countries. This was done to facilitate a prompt agreement between the European Parliament and the Council negotiators and to provide legal certainty for affected business operators.

Key takeaways

• The EUDR requires operators and traders of certain commodities and products to establish a due diligence system to ensure that these products and their derivatives are "deforestation-free" – otherwise the commodities and products cannot be placed or made available on or exported from the Union market.
• The EUDR was originally scheduled to be implemented by companies from 30 December 2024. However, following the adoption of the European Commission's proposal, large and medium-sized companies will be required to comply with the EUDR as of 30 December 2025. For micro and small enterprises, the regulation will take effect on 30 June 2026.
• Although the EUDR is not yet implemented, businesses can already submit and manage their due diligence statements via the European Commission's Information System.

Overview of the Regulation 

For a comprehensive overview of the regulation see our November 2024 update.

The commitment to easing administrative burdens on businesses is gaining momentum within the EU institutions. In the context of the general review of the EUDR, which is foreseen no later than June 2028, the European Commission is exploring ways to streamline reporting and documentation requirements, with the aim of keeping reporting and documentation obligations to a necessary minimum. In the short term, the European Commission will publish an updated edition of the Guidelines and Frequently Asked Questions to assist operators and traders in implementing the EUDR and to provide further clarifications.

Ashurst will continue to monitor developments closely, with a particular focus on the European Commission's classification list of countries and regions, due for release in June 2025, which is based on the risk of deforestation and forest degradation in those territories.