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With less than four months remaining until the European Union Deforestation Regulation (EUDR) takes effect on December 30, 2024, the urgency to address its implementation challenges is mounting. This landmark regulation is pivotal for forest protection and biodiversity, aiming to establish more sustainable supply chains. Yet, as we near the implementation date, several pressing issues threaten to impact trade, businesses, production chains, and consumers.

In response, we have presented a detailed proposal to the European Commission, aiming to break the current deadlock on the EUDR. Our goal is to find a balanced solution that protects the environment while supporting businesses, European consumers, and producing countries.

You may download the full letter here or read a brief summary below:

EMERGING CHALLENGES 

The absence of clear guidelines and tools from the European Commission is complicating the adjustment process for many stakeholders, particularly vulnerable smallholders in exporting countries. This confusion is also affecting businesses and national authorities, many of which are still unprepared for compliance. Furthermore, the complex nature of global supply chains makes it difficult to apply a “one size fits all” approach as envisaged by the regulation.

ECONOMIC AND SOCIAL RISKS

In this climate of uncertainty, the economic and social risks associated with the EUDR are significant. Expected price increases could heavily impact not only European consumers, already stressed by inflation, but also smallholders in producing countries. Excluding these producers from supply chains aimed at Europe risks exacerbating poverty and, paradoxically, could increase deforestation rather than mitigating it.

OUR PROPOSAL

To overcome these challenges and ensure the EUDR’s success, we propose:

• A two-year transition phase allowing all stakeholders ample time to adapt to the regulation gradually.
• Creation of a Permanent Committee, including specialized workgroups for each commodity, to facilitate continuous information exchange and effective monitoring of implementation.
• Temporary suspension of sanctions during the transition phase, while maintaining the EUDR’s required controls.

We strongly believe these measures will pave the way for a more effective and fair implementation of the EUDR.

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Interested in learning more? Contact us! 

Media

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