ASIATODAY.ID, BRUSSELS – The European Union ambassadors decided to postpone the implementation of the European Union Deforestation Regulation (EUDR) for one year.
In a decision taken on Wednesday, October 16 2024, the European Union decided that the implementation of the law which will mark deforestation reform will be implemented in December next year.
This month, the European Commission proposed that the EUDR be postponed, after receiving pressure from a number of European Union member states and large exporters of agricultural products such as Brazil and Malaysia. The EUDR was agreed in June 2023 and should have come into force on December 30 this year.
The European Commission says deforestation is the second largest source of greenhouse gas emissions that cause climate change after the burning of fossil fuels.
EUDR will require companies that import commodities, including beef, coffee, palm oil and rubber, to prove their supply chains do not contribute to deforestation. If the companies fail to prove this, they will be subject to fines. Products produced on land that has not experienced deforestation after 31 December 2020 are considered deforestation-free.
Now, manufacturers and large trading companies must comply with the law by December 30, 2025, while medium-sized companies by June 30, 2026. The delay still requires a vote in the European Parliament.
Last week, industry and business groups said companies that already pay to comply with deforestation laws would lose out if the European Union delays implementing the legislation.
The European Union group of edible oil companies, Fediol, said its members, including trading giant Cargill and food processor AKK, would suffer huge losses if the legislation was not implemented. This is because many Fediol members have paid a premium for raw materials to comply with this law.
Cocoa processing companies and chocolate producers are also experiencing a similar scenario. Entrepreneurs say they are already selling deforestation-free grain at prices 6 percent higher, with values reaching £300 per tonne. This will result in chocolate processors and producers being unable to cover the costs they have incurred and being forced to incur losses. (AT Network)
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