The European Union's new Deforestation Regulation (EUDR), aimed at combating deforestation linked to global supply chains, has been extended by 12 months. The Commission has issued additional guidance documents and a stronger international cooperation framework aimed at supporting global stakeholders, Members States and 3rd Countries (including the UK) in their preparations for the implementation of EUDR.
Initially set to come into full force in 2024, the extension gives large businesses until the end of 2025 and SMEs till 30th June 2025, to adjust their sourcing practices, documentation, and supply chain transparency to meet the new standards. The regulation aims to reduce the EU's contribution to global deforestation and encourage sustainable supply chains.
Providing companies with additional time to comply. The regulation, which requires businesses to prove that their products do not contribute to deforestation, affects imports of goods like soy, palm oil, coffee, wood, and cocoa. It applies to both large and small companies operating within or exporting to the EU.
While the extension provides relief for companies that were struggling to meet the tight deadlines, it also underscores the EU's commitment to tackling environmental harm caused by deforestation. Non-compliance after the grace period will result in penalties, including fines and potential import restrictions.
The EUDR has significant implications for industries that rely on forest-related products, requiring them to ensure their supply chains are free of deforestation and degradation. The extended timeline gives businesses more time to establish traceability systems, form partnerships with sustainable suppliers, and implement verification processes.
In conclusion, while the 12-month extension offers a temporary reprieve, businesses must take this time to adapt their practices to comply with the EU’s strict deforestation standards.
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