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The European Parliament has approved the Commission’s proposal to postpone the enforcement of the EU Deforestation Regulation (EUDR) by one year to December 30, 2025, alongside a number of amendments, which means the new text will now have to go back to committee for interinstitutional negotiations.
The new text will have to be endorsed by both the Council of the European Union and the European Parliament, then published in the EU Official Journal by December 30, the regulation’s original enforcement date. The Environment, Public Health and Food Safety (ENVI) committee is now in charge of negotiating with member states.
“The Hungarian presidency has taken good note of the voting results of the European Parliament plenary and will reflect on the way forward together with Member States,” an EU official told Fastmarkets.
The last plenary of the Parliament will take place on December 16-19 in Strasbourg.
If the postponement is finally approved by both the Parliament and the Council, the EUDR will come into force on December 30, 2025, for large operators and traders and on June 30, 2026, for micro- and small enterprises.
The Parliament also approved other amendments, including the creation of a new category of countries posing “no risk” on deforestation in addition to the existing three categories of “low”, “standard” and “high” risk. “Countries classified as “no risk”, defined as countries with stable or increasing forest area development, would face significantly less stringent requirements as there is a negligible or non-existent risk of deforestation, the European Parliament said, adding that the Commission will have to finalize a country benchmarking system by June 30 next year.
Elsewhere, on November 13, the European Commission published a guidance document with the aim to further clarify parts of the regulation including the definition of “operator,” and “negligible risk,” as well as product scope for “packing and packaging materials.”
According to the document, packing material placed on the market as products in their own right and containers which give a product its essential character (such as decorative gift boxes) will be subject to the regulation. On the other hand, packing material presented with goods inside and used exclusively to support, protect or carry another product and user manuals accompanying shipments, unless they are placed on the market in their own right, will not fall under the scope of the EUDR.
Want to learn more about the EUDR and other major influences on the forest market? Fastmarkets offers price data, short- and long-term forecasts for key commodities. Speak to our team and find out more today.
Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.