ECA calls for a delay on EUDR, adding more pressure on Brussels as concerns on flagship green policy mount

In a letter sent directly to Ursula von der Leyen, the European Commission president, and seen by CocoaRadar, European Cocoa Association (ECA) president Paul Davis said his organisation ‘respectfully requests that a proposal to delay the date of application of the EU Deforestation Regulation (EUDR) be put forward, in order to provide the additional time that is essential to make this Regulation a success.’

The ECA represents organisations and companies, including cocoa suppliers Barry Callebaut and Cargill and traders Ecom and Sucden. It has called for extending the transition period at least six months from its supposed 30 December 2024 launch.

While supporting the EU Green Deal policy, which the EUDR forms part of, the ECA said that ‘with just over 100 days left until the envisaged date of application, however, the ECA is forced to conclude that the current situation necessitates a formal extension of the transition period and a phased introduction of the law. 

‘The absence of clarity on key elements due to the repeatedly delayed publication of FAQs and guidance makes preparing for the Regulation highly uncertain from a legal perspective. 

‘We also remain extremely concerned by the operational difficulties that the current Information System presents and are deeply concerned with the design, implementations, and capabilities to process the millions of farm data adequately, and the lack of clarity around how the Competent Authorities will interpret the legislation.’

Where are the FAQs?

CocoaRadar understands that the updated FAQs are due to be published this week.

A spokesperson for the European Commission told this publication: ‘“We cannot commit the Commission to any exact timing of adoption of documents – work is in progress, but the final adoption depends on a political decision which is always taken at the end of the process, which means we cannot confirm the specific date.”

When asked about calls to delay the legislation, the spokesperson said: “We do not have any new comment on calls or comments: I think you know our general statements on this issue.”

Letters from other organisations requesting delays have recently been sent

The ECA letter is not the only one sent to Brussels this week. ​​Competere, a European policy institute that performs analysis and advocacy to foster global trade with more resilient and sustainable supply chains, also sent a similar one.

It cited concerns, including the absence of clear guidelines and tools from the European Commission, which 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,’ it said.

Competere also highlighted the ‘significant’ economic and social risks associated with the EUDR. 

The letter states: ‘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.

German Chancellor Olaf Scholz also calls for a delay

In the past seven days, there have been further calls to delay the EUDR, notably from German Chancellor Olaf Scholz, who revealed he had discussed the issue with President von der Leyen. The United States and Brazil’s foreign affairs and agriculture ministers and trade bodies from Indonesia and Malaysia have also called for a delay recently, arguing it will negatively impact global commodities markets.

In July CLECAT (European Association for Forwarding, Transport, Logistics and Customs Services) submitted a joint industry letter to the EC with a request for postponement warning that unclear procedural rules, delays in the publication of secondary legislation, IT system specifications, and insufficient guidance could bring European supply chains to a standstill. 

The CocoaRadar view: Are calls for a delay ‘scaremongering’ or a justified response to ungainly legislation?

What now? CocoaRadar and the industry repeatedly ask this question as the deadline approaches 30 December.

Writing on LinkedIn, Hannah Mowat, campaigns coordinator at Fern NGO, said: 'Deforestation is a complex problem, and the EUDR is a groundbreaking law that contributes to tackling it. We must expect teething problems and work together to make it work.

‘Our priority is that smallholders have the necessary support to implement it, that the EU enters into genuine dialogue with producer countries and puts new incentives on the table, and that civil society in producer countries are given the necessary support to undertake independent forest monitoring.’

Although the ECA’s letter raised genuine concerns and was drafted from a position as a ‘trusted partner’ of the EC, it is CocoaRadar’s view that the closer to the implementation deadline, the harder it will be for a volte-face from Brussels. 

If the EC extends the transition period at this stage, it will necessitate a change in the regulations, adding further confusion, frustration, and anxiety, particularly among smaller operators.

We call for the EC to update its guidelines, communicate better with industry stakeholders, and set up regular, joint steering committees as soon as possible if it wishes to retain the little credibility it still has left in implementing the European Union Deforestation Regulation.