EUDR Delay Voted: What It Means for Your Business
On 14 November 2024, the European Parliament voted on the proposed EUDR delay. The delay was tabled by the Commission on 2nd October and approved by the Council on the 16th October.
On 7th November, the EPP faction of the Parliament tabled 15 amendments, pushing for a 2-year delay, the introduction of a “no risk” country classification and the removal of obligations for traders. At the last minute, the EPP retracted the proposed amendments for the 2-year delay and removal of obligations for traders.
The remaining amendment, adding a “no risk” country classification level, passed by a small margin of votes. The vote of today was rife with technical issues, creating chaos with not all votes registered. Requests for a revote were declined.
What this means
It is unclear what the outcome will be. The passed amendment on the “no risk” category will now have to go back to trilogue negotiations. There is very little time left as a new EUDR text will need to be agreed on and published before end of this year. This will include the proposed 1-year delay.
Policy experts have doubts this will be possible, which may mean that the current application date of 30 December 2024 might actually stick.
This would, however, also mean that the European Commission must deliver the list of country risk classifications by that date. Are they ready for this?
How to proceed
Companies must stay on track with their EUDR efforts and use time they have efficiently.
Read our previous blog The EUDR and How to Move Forward in Uncertain Times to understand why time remains of the essence.
From the beginning of October, the Commission has delivered on many elements that will be key for companies working towards compliance, such as updated FAQ, updated website, EUDR Guidance and Information System User Guide.
In addition to the above:
The Commission has started with virtual training sessions and will also make recorded sessions available in the near future. The next sessions should happen in December, check here for updates to register.
A sandbox environment is available for operators, traders and their representatives to test out (access here).
As of 6 November, the production environment of the EUDR Information System, TRACES, has been opened for Operators to start registration. Due Diligence Statements cannot yet be uploaded.
Th EUDR Guidance has been published in all official EU languages.
Deforestation disclosure for financial institutions
In September this year, the WBCSD (World Business Council for Sustainable Development) issued a Deforestation Disclosure Guide for Financial Institutions. This guide was written in recognition of the link between deforestation and climate- and nature-related risks and opportunities, with financial risks from deforestation and land-use change becoming material for many companies and their finance providers.
Companies must prepare for EUDR compliance, i.e. engage with their supply chain, map the supply chains of the relevant products all the way to the farms and forest, collect data and information and perform risk assessments.
Check out our EUDR Checklist and EUDR Fireside Chat to learn more or reach out to info@qima.com to discuss how we can help you.
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