Update: 19 December 2024
EUDR delay voted through by Parliament
The EU Parliament in Strasbourg, France, voted on Tuesday (17 December) by a large majority (546 votes in favor, 97 against and 7 abstentions) to officially give the green light to postpone the entry into force of the EUDR (European Union Deforestation Regulation) by one year.
The Parliament approved the provisional political agreement with the Council to delay the application of the rules that will ban the sale in the EU of products sourced from deforested land. Before the one-year delay can enter into force, the agreed text must be endorsed by the Council and published in the EU Official Journal before the end of 2024.
This now means that large operators and traders will have to respect the obligations of this regulation as of 30 December 2025 and micro- and small enterprises from 30 June 2026. This additional time is intended to help companies worldwide implement the rules more smoothly from the date of application without undermining the objectives of the law.
In a statement following the vote, the solidaridadnetwork said: “The real challenge of the EUDR is now about to begin: how to make it deliver on its promise, and how to do so positively for the communities at the heart of its implementation: smallholder producers across the world.”
Update: 4 December 2024
‘Modest’ amendment on delay means legislation will likely be passed by the end of 2024
The political stalemate in Brussels regarding the implementation of the European Union Deforestation Regulation has ended with the European Council and Parliament agreeing, after further ‘trilogues,’ on its targeted amendment to postpone its date of application by 12 months to 30 December 2025.
This provisional agreement still needs to be confirmed by both institutions before going through the formal adoption procedure. Further amendments tabled by the right of centre European People’s Party (EPP) were withdrawn in exchange for a commitment from the EU Commission to update the EUDR in 2028 when countries practising sustainable forest management and showing no deforestation will have the opportunity to be exempted from unnecessary red tape.
The EU’s deforestation regulation was adopted in 2023 to ensure that products derived from certain commodities that are placed on the EU market or exported from the EU have not caused deforestation or forest degradation during their production, have been produced in accordance with the relevant legislation of the country of production and are covered by a due diligence statement.
The Commission submitted its proposal on postponing the application date of the deforestation regulation in response to concerns raised by member states, third countries, traders, and operators that they might need more time to fully comply with the rules by 31 December 2024, when the law would effectively come into force.
On 16 October 2024, the European Council agreed on its position on the amendment of the EUDR, postponing its date of application by 12 months. On 20 November 2024, the Council reiterated its support for the proposed targeted amendment, rejecting another of the EPP amendments that called for establishing a 'no-risk' category in the benchmarking process, which means companies would only need to show evidence of compliance if requested by the competent authority.
In a statement on LinkedIn after the announcement late Wednesday night (3 December 2024) Delara Burkhardt, MEP, Group of the Progressive Alliance of Socialists and Democrat, said: “The behaviour of the EPP Group was irresponsible. With their political games, they created uncertainty for businesses and damaged the reputation of the European Parliament as a serious negotiating partner.
“Instead of seeking a broad majority in the centre, the EPP Group preferred the flirt with the far right, even though it was clear all along that their half-baked amendment proposals had no chance of success with the Council and the Commission.
“From the start, we, Social Democrats, proposed a solution that is now reflected in the final outcomes; namely to modestly postpone the Deforestation Regulation by one year and to demand a commitment from the European Commission on further support measures for businesses. This will give companies sufficient additional time and assistance to prepare for the implementation of the regulation.”
Next steps for the troubled EUDR
The European Council and Parliament will now have to endorse the provisional agreement. It will then be formally adopted by both institutions and will be published in the Official Journal of the EU, so that it can enter into force before the application date of the current regulation (30 December 2024).
Update: 21 November 2024
Political in-fighting over the EUDR continues in Brussels as cocoa prices fluctuate on the market
EU member states refuse to back EPP’s broader amendments to the deforestation bill, with cocoa prices at close today remaining higher due to political uncertainty and supply issues.
Anthony Myers
Update: 15 November 2024
‘A shameful moment and a betrayal’
Why did the EU Parliament vote to delay and amend the European Union Deforestation Regulation weeks before it was supposed to be implemented? Read the full story in the link below for the latest updates.
Anthony Myers
Update: 11 November 2024
Fairtrade International calls on EU to ignore pressure from EPP as it attempts to derail EUDR
As the European Commission opens due diligence registration for traders, political infighting at the European Parliament threatens to disrupt the European Union's Deforestation Regulation (EUDR) further, cocoaradar.com can report
Anthony Myers
UPDATE: 4 OCTOBER 2024
The European Commission has bowed to pressure and put forward a draft amendment to postpone by 12 months the EUDR rules banning key commodities, like coffee, cocoa, soy, and beef, from entering the bloc if there is evidence they were grown in protected forests.
If approved by the European Parliament and the Council, 30 December 2025 for large companies and 30 June 2026. Since all the implementation tools are technically ready, the extra 12 months can serve as a phasing-in period to ensure proper and effective implementation.
Anthony Myers
Meanwhile, cocoa prices continued a downward spiral, with London cocoa posting a one-month low on Wednesday (3 October) after the European Commission unexpectedly postponed its flagship European Union Deforestation Regulation, which was supposed to be implemented on 30 December 2024.
The law's postponement by 12 months allows certified cocoa stockpiles held at European warehouses to be used to satisfy contracts, reducing concerns that the new law would lead to the cocoa's decertification and limiting existing cocoa supplies.
What happens next?
Anthony Myers
Check out our exclusive Q&A with the European Commission from June 2025, when cocoaradar.com first voiced concerns about the implementation of the EUDR
Anthony Myers
UPDATE: 27 SEPTEMBER 2024
Cocoa operators in legal limbo as European Commission fails to update EUDR guidelines
With under 100 days to go until the implementation of the European Union Deforestation Regulation (EUDR), CocoaRadar understands that a stakeholders’ platform meeting held behind closed doors in Brussels earlier this week disagreed on a crucial update to technical guidelines and FAQs, leaving cocoa operators, and those of other commodities, who export to the EU, in legal limbo.
More than 28 organisations, including the European Cocoa Association, politicians from EU countries, and international governments, have called for a delay in the regulations (due to come into force on 30 December 2024). However, the European Commission has reiterated its stance against postponing the EUDR, which the EU Parliament passed in June 2023.
German Federal Minister of Food and Agriculture, Cem Özdemir, said in a statement: "The fact that the EU Commission wants to stick to the start of application of the EUDR at the end of the year, even though relevant questions have not yet been clarified, is worrying. This is a problem for German and European companies and businesses. That is why the German government and even the Chancellor have pushed for a postponement - in the hope that the concerns of the member states will be taken seriously.
“The Commission had over a year to create the conditions for a proper and practical implementation of the regulation. This was not successful…”
The regulation affects commodities other than cocoa beans, including cattle, oil cake, soybeans, palm oil, chocolate, coffee, leather hides, paperboard, wood products, and furniture.
The EUDR decrees that exporters must ensure these commodities and goods are sourced from land that has not been deforested since 31 December, 2020.
Large companies have an 18-month compliance period, while small firms are given 24 months. Consequently, large firms must comply by December 2024 and small firms by June 2025.
According to sources, European Commission President Ursula von der Leyen is reluctant to delay the implementation of the EUDR because it would necessitate legislative changes and legal unpredictability for operators already struggling with mandatory due diligence statements.
There are also strenuous calls for Brussels to remain resolute and proceed with the planned implementation.
A ‘pioneering law under attack’
Writing in Mongabay, an environment news website, Sam Lawson, described the EUDR as a ‘pioneering law under attack’
“There is some understandable frustration that the benchmarking of sources of forest risk commodities as low, standard or high risk has not yet been completed and that there have been delays to European Commission guidance on interpretation of the law.
“However, some of those citing these problems as a reason to delay implementation of the law have a broader agenda to weaken it or even see it overturned. Already, some who initially called only for a delay have begun demanding that low-risk goods be exempt from requirements for traceability.
“Weakening the traceability requirement would be a disaster,” he writes.
According to a report in news channel Euractiv, one scenario is for a ‘soft launch’ with a further transition period and the core requirements of the EUDR remaining in place.
This would mean that while all requirements officially take effect at the end of December, national governments would start with actual enforcement later, in 2025 or 2026.
According to Euractiv, sample verifications and checks would begin later once countries are ready and have prepared their verification systems.
In any event, certification and due diligence experts advise companies to continue, with the expectation of full enforcement in December.
UPDATE: 19 SEPTEMBER 2024
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.
Anthony Myers
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.
Anthony Myers
The European Deforestation Regulation (EUDR) is a landmark legislative framework aimed at curbing deforestation and forest degradation associated with the European Union’s consumption of commodities. Implemented by the European Commission, the EUDR targets the importation and trade of products linked to deforestation, ensuring that EU market activities do not contribute to the loss of forests globally. This regulation represents a significant step towards sustainable trade practices and the protection of vital forest ecosystems.
Summary of the European Deforestation Regulation (EUDR)
The European Deforestation Regulation (EUDR) was introduced to address the EU’s role in global deforestation through stringent measures on commodities such as cocoa, soy, palm oil, beef, wood and coffee, which are often linked to deforestation.
Key provisions of the EUDR include:
1. Due Diligence Requirements: Companies must perform due diligence to ensure their products do not originate from deforested land post-2020.
2. Supply Chain Transparency: Businesses are required to provide detailed information about the sources of their commodities and ensure traceability throughout their supply chains.
3. Enforcement Mechanisms: The regulation enforces compliance through penalties for violations, incentivizing companies to adhere to sustainable practices.
4. Reporting Obligations: Companies must regularly report their due diligence activities and findings to relevant authorities.
The EUDR seeks to reduce the EU’s deforestation footprint and encourage sustainable land use practices worldwide, contributing to global efforts to combat climate change and biodiversity loss.
Anthony Myers
Update on the European Deforestation Regulation (EUDR)
As of mid-2024, the implementation of the EUDR is in full swing, with several key developments:
1. Compliance Deadlines: Companies trading in the EU have until the end of 2024 to fully comply with the regulation’s requirements. Non-compliant businesses face significant fines and market restrictions.
2. Technological Integration: Advances in technology, including satellite monitoring and blockchain, are being integrated to enhance traceability and verification of commodity origins.
3. Capacity Building: The EU is providing support to trading partner countries to improve their capacities for sustainable land management and compliance with the EUDR standards.
4. Public Awareness: Increased efforts are being made to educate consumers about the importance of deforestation-free products and encourage more sustainable consumption patterns.
Anthony Myers
These updates underscore the EU’s commitment to enforcing the EUDR and its broader environmental objectives, positioning the regulation as a critical tool in the fight against global deforestation.
28 July 2024: Alarm bells ring over EUDR as chocolate companies urge urgent action from EC on implementation
An influential group of companies and organisations in the cocoa industry has called for the European Commission (EC) to use its full powers enshrined in the European Union Deforestation Regulation (EUDR) to create a special ‘Standing Committee’ to enable “urgently needed coordination and technical discussion” between the EC and operators to “ensure its timely and effective implementation by 30 December 2024.”
Mars, Ferrero, Nestlé, and Tony’s Chocolonely, along with independent watchdog Voice Network and Fairtrade Advocacy Office, signed a joint paper urging the EC to establish a robust coordination mechanism while making clear that the signatories support the new law.
The paper states that one of the first tasks of a proposed EUDR Standing Committee would be to support the provision of guidance and clarifications to member states and companies on how to prepare for EUDR compliance by December 30, 2024, including the use of the Information System.
As seen by CocoaRadar and sent to Brussels last week, the paper states that companies currently need more information and certainty on respecting specific key administrative requirements of the EUDR.
Countries must establish efficient communication channels and procedures with EU trade authorities to address EUDR-related issues. https://t.co/UJWWuoA8yE via @worldbank
— From The Desk of Cocoa Radar (@cocoaradar) August 2, 2024
Stress-testing shows limitations of system
Alarm bells are ringing after stress-testing the Deforestation Information System (DIS), used by operators of various commodities to upload their due diligence data, which has ‘shown limitations in terms of content and speed of the Multi-Stakeholder Platform to tackle such operational issues.’
Read the full story in the link
Anthony Myers
Mapping the EUDR: 10 satellite and imagery providers tracing cocoa farms
CocoaRadar scopes out 10 data companies working with cocoa operators to provide accurate polygon maps for EUDR-ready due diligence statements.
Many operators rely on open platforms like Global Forest Watch (GFW), which incorporates open data sets from GLAD, Hansen, and RADD to access near real-time information about where and how forests are changing around the world. However, many experts argue that GFW alone should not be used for EUDR compliance or business-sensitive assessments.
The key lies in how these data sets are utilized and interpreted.
In the article below, we look at 10 satellite and imagery companies that provide data to cocoa operators involved in polygon mapping farms for EUDR compliance.
Anthony Myers
Rainforest Alliance EUDR certification holders
The Rainforest Alliance certification is one of the standards set for sustainable procurement in the cocoa sector - and other commodities.
As the industry is fully aware, certifications alone cannot prove compliance with the EUDR but can be used to support the data collection process
Therefore, the Rainforest Alliance and other certification bodies have a slight advantage in setting up systems to support producers and supply chain actors in meeting the EUDR's requirements.
In addition, the organisation says its standard requirements already align with the EUDR, and four self-selected requirements have been introduced to cover aspects of the EUDR that were not fully aligned.
“These requirements are only applicable to cocoa and coffee Farm Certificate Holders. Certified farms can choose to implement these additional requirements and have these covered in their audits to support actors further down their supply chains to comply with the EUDR and continue selling their products on the EU market,” it said.
Rainforest Alliance has published its first tranche of certificate holders that have been audited and meet additional EUDR self-selected requirements in the Rainforest Alliance’s Alignment with the EUDR Policy.
Click on the chart below for more details.
16Aug 2024: Fairtrade urges the European Commission to give more farmer support over EUDR
Fairtrade International has urged the European Commission (EC) to offer more financial support and clarify the technical terms needed for cocoa and coffee producers to meet the 30 December 2024 European Union Deforestation (EUDR) deadline.
While the organisation reiterates it strongly believes in the EUDR objectives to create sustainable supply chains by preventing the sale and import of forest-damaging products - in a statement to the media, it said it is “very concerned that producer organisations will be cut off from trade with the EU market or pushed out of supply chains by larger producers not because they farm on deforested land, but because they face challenges in collecting, managing, and submitting the necessary data.”
The 2023 regulation applies to companies placing relevant commodities or products on the EU market or exporting those from it. They must demonstrate that their products are deforestation-free as of the 2020 cut-off date and are not linked to forest degradation or illegal harvesting and trade.
Fairtrade International said this is why it calls on the EC to address the regulation’s shortcomings and help the millions of small-scale farmers at risk.
It recommends the EC needs to act immediately on:
- Provide an assessment of the EUDR’s expected impact on the most vulnerable stakeholders in the global supply chain - small-scale farmers - and their ability to comply with the regulation, the administrative burden, and the compliance costs.
- Develop a coherent EU framework strategy for supply-side partnerships with producer countries that create a space for multi-stakeholder dialogue and are linked to efficient economic and trade incentives.
- Share the promised guidance document that helps clarify the application of the law, including defining key terms, explaining the rules on the traceability requirements and data governance across supply chains, and specifying the criteria used to verify compliance. Plus, update the EUDR’s Frequently Asked Questions, which have not been updated since December 2023. The more information producers have, the easier it is for them to adapt and work to meet the new requirements.
- Provide market incentives and funding to assist small-scale farmers in complying with EUDR requirements. Farmers should not have to bear the compliance costs linked to EU laws.
Fairtrade said it had updated its Cocoa Standard (2022) and Coffee Standard (2024), which require Fairtrade-certified producers to strengthen their deforestation prevention, monitoring, and mitigation.
“The updated Standards align with the EUDR requirements, including that farms above four hectares in size or in high-risk areas must use polygon mapping, while smaller farms and farms in low-risk areas can use single geolocation points.”
Fairtrade has partnered with tech firm Satelligence to help cooperatives collect data on their members’ farms and deforestation risks.
The producer organisations provide geolocation data for each of their members’ farm plots. Satelligence’s platform verifies the data, detects any deforestation activity within members’ boundaries, and whether or not farms are located in protected areas. It also flags deforestation near the farm, which is essential information contributing to cooperatives’ risk assessments. Finally, the system generates reports that cooperatives can use themselves and provide to their customers or potential customers.