The EU Commission has proposed a postponement of the implementation of the Deforestation Regulation (EUDR). The pulp and paper sector welcomes the announcement which offers an occasion to develop a stronger framework to fight deforestation. The European Parliament and EU Council will still need to confirm the delayed phase-in.
The EU Commission has proposed a draft amendment to postpone by a year the implementation of a regulation aiming to limit deforestation linked to commodities, not only imported but also produced and exported from the European Union.
Long-expected guidelines to the implementation of the EUDR have now been published in conjunction with the announcement, but the information system build by the EU to enforce the tracking of materials and commodities remains to be completed. A benchmarking system assessing the risk level by country is also still pending. Based on these delays, the EU pulp and paper sector represented by Cepi has been vocal about the need for an adequate transition period for the EUDR.
It is not unusual to see transitional implementation periods applied for EU legislation. The predecessor to the EUDR, the EU timber regulation (EUTR) had a 3-year transition period, for a much simpler system. The EUTR remains in place and ensures no wood from illegal sources is placed on the EU market.
EUDR rules state that companies must ensure that their products were not made on areas deforested after 2020. They require passing tracking information along complex value chains, which is particularly challenging when materials are mixed from different sources as is the case for paper. The delay will now allow for a better implementation of the regulation, and stronger impact on deforestation.
Jori Ringman, Cepi Director General, said, “The EUDR is too important not to get it right. We certainly do not ignore the environmental crisis and the climate emergency, which the EUDR is designed to help solve. Nor is our industry a source of deforestation. From a business angle, deforestation is major reputational risk which for any industry; our industry also depends on healthy forests for our own future. We fully support the objectives of the EUDR, and with this new timeline, we believe that the EU and its trade partners now have a much better chance at finally eradicating deforestation.”
The American Forest & Paper Association President and CEO, Heidi Brock, released the following statement regarding the decision to extend the EU Deforestation Regulation implementation deadline to December 2025.“We appreciate the EU Commission for being responsive to U.S. government officials and the numerous partners across the globe who have voiced concerns about the complex requirements and significant technical barriers of EUDR. Today’s additional guidance and extension of the implementation deadline provides industries like ours with more time to engage on workable solutions that avoid trade disruptions. AF&PA fully supports the EUDR goal of deforestation-free supply chains. The U.S. pulp and paper industry is not linked to global deforestation and forest degradation. We believe in balanced and achievable regulations, and are a strong proponent of international efforts to address deforestation and forest degradation. As such we welcome the Commission’s commitment to a stronger cooperation framework. We look forward to the opportunity for continued dialogue with EU regulators and other stakeholders to refine and improve the EUDR’s overall effectiveness.”