Lawmakers in the European Parliament voted on Wednesday to reject a proposed benchmarking system categorising countries by their deforestation risk level, presenting a potential setback for the EU Deforestation Regulation (EUDR). This regulation aims to ensure that products imported to or exported from EU markets do not contribute to global deforestation and forest degradation, amid concerns that the law could face further delays.
The EUDR, initially introduced by the European Commission in November 2021, seeks to ban deforestation-linked projects from the EU market. It establishes stringent compliance requirements for companies involved with key commodities such as palm oil, beef, timber, coffee, cocoa, rubber, and soy, as well as derived products like leather, chocolate, tyres, and furniture.
Under the new rules, companies wishing to place relevant products on the EU market or export them will need to adhere to mandatory due diligence. This includes tracing products back to the plot of land where they were produced, ensuring they were not cultivated on deforested land post-2020, and complying with all applicable laws in the country of production.
The regulation incorporates a benchmarking system that classifies countries based on the risk of producing commodities not free from deforestation. This classification affects compliance obligations, with sourcing from low-risk countries allowing for simplified due diligence for operators and traders.
A motion by the European People’s Party (EPP), approved by a majority of MEPs, criticised the benchmarking system for using outdated data that fails to accurately reflect current realities and land-use dynamics. The EPP argued that the system’s three risk categories—low, standard, and high—are insufficient for differentiating countries with varying deforestation risks. The EPP had previously advocated for a “no-risk” category, though this was not included in the final agreement with the European Council. The agreement did, however, delay the law’s implementation, with the EUDR now set to apply to large companies in December 2025 and to micro- and small enterprises in June 2026. The European Commission proposed the delay, citing concerns about global partners’ preparedness and uneven readiness among EU stakeholders.
Following the motion’s approval, the EPP reiterated its call for a “no-risk” category in the EUDR. Alexander Bernhuber MEP, who tabled the objection for the EPP, stated that the Commission’s list misrepresents many countries’ situations and imposes unnecessary burdens on farmers, foresters, and industry. He emphasised the need for policies that balance environmental protection with practical solutions, highlighting the importance of a “no-risk” category for countries with stable or expanding forest areas.
Environmental groups expressed concern that the vote could further delay action on deforestation. Greenpeace noted that it is unlikely the Commission could develop a new classification methodology before 30 December 2025, potentially delaying the regulation’s implementation again.
Greenpeace Forests Campaigner Sigrid Deters acknowledged the regulation’s shortcomings but stressed that the EUDR must be applied by operators and enforced by competent authorities according to the agreed schedule, with a review planned for 2026.
