The European Parliament's PPE Group has proposed significant amendments to the EU Deforestation Regulation (EUDR), including a new risk classification system and delayed implementation dates. These changes aim to make the regulation more practical while maintaining its environmental protection goals. Link to the PPE Groups proposed amendments are here.

Key Proposed Changes

New Four-Tier Risk Classification System

  • Introduction of a "no risk" category alongside existing high, standard, and low-risk categories
  • Countries with stable or increasing forest coverage since 1990 could qualify for "no risk" status
  • Simplified documentation requirements for operators in "no risk" countries
  • Reduced inspection requirements (0.1%) for operators from "no risk" countries

Extended Implementation Timeline

  • Postponement of main application date from December 2024 to December 2026
  • SMEs and micro-enterprises would get until June 2027 to comply
  • Six-month minimum period required between information platform launch and regulation enforcement

Simplified Requirements for Traders

  • Removal of due diligence obligations for traders
  • Focus on operators as primary responsible parties
  • Aim to reduce administrative burden and potential price increases

Enhanced International Cooperation

  • Regular dialogue with WTO members
  • Focus on compliance with international trading system
  • Effort to avoid trade tensions and retaliation

Impact on Businesses

The proposed changes would significantly impact how businesses comply with the EUDR:

  • Reduced administrative burden for companies operating in "no risk" countries
  • More time to implement necessary systems and procedures
  • Simplified requirements for traders in the supply chain
  • Greater emphasis on international trade compatibility

Frequently Asked Questions

When would these changes take effect if approved?

The main provisions would take effect from December 30, 2026, with SMEs getting until June 30, 2027.

What qualifies a country for "no risk" status?

Countries must have:

  • Stable or increasing forest area since 1990
  • Signed Paris Agreement and relevant international conventions
  • Strong national deforestation prevention regulations

How would the changes affect traders?

Traders would be excluded from due diligence requirements, though they would still need to maintain basic documentation and assist with authority checks.

What documentation is required for "no risk" country operators?

Basic documentation including:

  • Product trade name and type
  • Quantity
  • Country of production
  • Supplier and customer details
  • Verification of legal compliance

Will these amendments definitely be implemented?

No, these are currently proposals that need to go through the EU legislative process before becoming law.

How would inspection requirements change?

  • High-risk countries: 9% of operators
  • Standard-risk countries: 3% of operators
  • Low-risk countries: 1% of operators
  • No-risk countries: 0.1% of operators

This article reflects the latest proposed amendments to the EUDR but represents ongoing legislative discussions. Businesses should stay informed about final adopted changes and prepare accordingly.