To protect forests and biodiversity worldwide, the EU has launched the Deforestation Regulation (EUDR). The EUDR came into force on 29 July 2023. The EU is granting a transition period of 18 months - 24 months for smaller companies. The EUDR must be applied from 30 December 2024.
The EU recently published a FAQ catalogue to support companies in implementing corporate due diligence obligations in trade with soya, oil palms, cattle, coffee, cocoa, rubber and wood as well as products made from them. This is because raw materials and products may only be placed on the market, made available on the market or exported if they have been produced without deforestation or forest degradation.
The European Commission's updated FAQs provide information on the specific compliance obligations that companies will face, among other things. In addition, the exact timeline of the Deforestation Regulation and the scope of the products covered by the Regulation are explained.
The catalogue of frequently asked questions was updated by the European Commission in December 2023. Concrete implementing acts for the regulation are expected later this year. These contain information on a three-tier country benchmarking system to be taken into account in the risk assessment. Market participants who source raw materials or relevant products exclusively from areas classified as low-risk are subject to simplified due diligence obligations.
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