FEDIOL highlights persistent challenges with EUDR implementation

The law is scheduled to take effect on December 30, 2024.

The landmark legislation aims to ensure that products such as soy, coffee, cocoa, palm oil, and beef sold in Europe do not contribute to deforestation. Under the new rules, companies are required to prove that their goods are not sourced from recently deforested land or linked to forest degradation.

Nathalie Lecocq, director general of FEDIOL, points to the absence of further guidance from the EU Commission on key aspects of the regulation.

“We are deeply concerned,” she tells us. “Since the last FAQ update in December 2023, we’ve submitted numerous questions that remain unanswered. These issues relate to definitions, the submission of due diligence statements (DDS), the handling of commodity flows, the collection and provision of required information, the management of sensitive data (both personal and commercial), and how to ensure that due diligence has been adequately performed. Additionally, there are significant concerns about the design and functionality of the Information System​​—specifically, whether it can handle the necessary data and meet business requirements. These are just a few of the challenges we are facing.”

Regarding whether issues with the due diligence platform have been resolved, Lecocq comments: “According to the Directorate-General for Environment (DG ENV) the problems raised during the pilot phase in January have been addressed, but businesses remain uncertain about whether the Information System will meet their needs."

The platform's limitations—such as the restrictions on data uploads and the standards to be applied—present further administrative burdens and increase the risk of errors, she warns. 

Lecocq acknowledges that DG ENV has provided some additional insights​​ into the system's functionality but emphasizes that many questions remain unresolved.

As for the availability of market offers from suppliers in export countries for soy and palm products due for delivery to the EU post-January 2025—a concern raised in June—Lecocq provides an update: “While some offers have emerged, they are nowhere near the volume seen in previous years. Both sellers and buyers face significant uncertainty, raising concerns about the future availability of these key commodities.”

FEDIOL has consistently stressed the negative market implications of this uncertainty for operators and traders, calling for immediate clarifications and solutions from both the Commission and member states.

Push for postponement

Concerns have been raised by other industry groups and EU farming ministers about the regulation's practical application.

There have been calls from various stakeholders​​ to postpone the enforcement of the regulation. However, EU officials told a press briefing on August 22 that the co-legislators have set the date for the legislation to take effect, and that the Commission is taking all necessary steps to ensure everything is ready in time.

Between a rock and a hard place​

Experts in Brussels warn that any delay to the EUDR could stall investments and push businesses toward markets with lower environmental standards.

Additionally, weakening the regulation could call into question the EU’s credibility and leadership on climate issues, note analysts​​ at the Europe Jacques Delors, a European think tank. "The Commission finds itself between a rock and a hard place, caught between the need to stick to its environmental commitments while grappling with the regulation’s shortcomings. Walking this tightrope requires strong leadership to uphold the EUDR’s framework in a difficult political climate, along with the courage to recognize and respond to legitimate concerns about its implementation,” they write.

They further emphasize the need for increased technical and financial resources to ensure a smooth and fair implementation of the rules.

Calls to stay the course​

Environmental groups and NGOs are urging the EU not to waver​​, warning that any delay in the regulation could weaken global efforts to combat deforestation.

The EUDR is seen as a crucial tool in the fight against climate change, and a postponement might send mixed signals regarding the EU’s commitment to its environmental goals, say those campaigners.