BRUSSELS, Belgium – Yesterday, the Council firmly reiterated its support to the proposed targeted amendment of the EU deforestation regulation (EUDR), postponing its date of application by 12 months. The Council considers that this is the best way forward to ensure legal certainty for all stakeholders. It should be recalled that the proposal of the Commission needs to be adopted, signed and published in the Official Journal before 30 December 2024.
This postponement will allow third countries, member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free.
This includes products made from cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
EUDR: More time given to better prepare for implementation
The deforestation regulation has already been in force since 29 June 2023 and its provisions are to be applied from 30 December 2024. The Council agreed to the Commission’s proposal to postpone the application date of the EUDR by one year.
This would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products. These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.
EUDR: Keeping the deforestation-free objective
The targeted amendment will not affect the substance of the already existing rules, which is to minimise the EU’s contribution to deforestation and forest degradation worldwide, by only allowing placing on the EU market, or exporting from the EU, deforestation-free products. Deforestation-free products are products that have been produced on land not subject to deforestation or forest degradation after 31 December 2020.
Next steps
The Council will now inform the European Parliament of this position with a view to start negotiations. The aim is to have the regulation formally adopted by both co-legislators and published in the Official Journal of the EU so that it can enter into force by the end of the year.
Coffee futures prices rallied yesterday
Meanwhile, coffee futures markets experienced a strong rebound in prices yesterday. ICE Arabica March contract gained 1,120 points (+4%) hitting to a new 13-year high of 292.50 cents. In London, the contract for January delivery of Ice Robusta appreciated 3.1 percent (+$142) to close at $4,798, its highest level since mid-October.
