European Neighbourhood Monitor

Online magazine highlighting research, news and analysis covering the European Neighbourhood

EU governments back one-year pause and potential reopening of deforestation law

/ Environment / By

EU governments have endorsed a proposal to postpone the implementation of the bloc’s deforestation rules for an additional year and to introduce a mechanism that could allow the legislation to be revised as early as next spring, according to diplomats briefed on the talks.

The decision, taken during negotiations on Wednesday, opens the door to a broader overhaul of the EU Deforestation Regulation (EUDR). The law prohibits the sale of products such as cocoa, coffee, livestock, palm oil, rubber, and timber on the EU market if they are linked to deforestation.

The compromise text — based on a German proposal circulated last week and a follow-up initiative from Denmark — gained support from most member states. Belgium, the Netherlands, and Spain opposed the deal, three diplomatic sources told Euractiv. France, historically a strong defender of the EUDR, ultimately backed the German approach despite voicing reservations days earlier.

Simplification review

A key element in the Council’s position is a new “simplification review clause.” This requires the European Commission to assess the regulation and deliver a report by 30 April 2026, which may include legislative amendments if deemed necessary.

The proposal also adjusts compliance responsibilities within supply chains. Downstream operators would no longer need to file their own due diligence statements proving products are deforestation-free. Instead, only the operators placing goods on the EU market would bear this obligation, while downstream companies would simply need to keep and forward the reference number of the initial statement.

The debate has gained momentum internationally. After U.S. President Donald Trump secured a de facto exemption for American products, major palm-oil-exporting nations such as Indonesia and Malaysia sought similar treatment. Malaysia has repeatedly argued that the EU’s classification of its imports as “standard risk,” compared with the U.S. “low-risk” designation, is unjustified. Malaysian deforestation has declined notably, with NGOs reporting a 13% reduction last year. Global Forest Watch data show Malaysia lost just 0.56% of its remaining primary forest in 2024 — less than Sweden’s 0.87%.

MSPO

Attempting to ease tensions, the EU recently agreed to recognise the Malaysian Sustainable Palm Oil (MSPO) certification as a valid system for demonstrating compliance with the EUDR. The MSPO scheme, used by the world’s second-largest palm oil exporter, became mandatory in 2020 and relies on independent third-party audits. Even so, Malaysian officials and companies argue that the EUDR still imposes significant bureaucratic hurdles, particularly at a time when the U.S. is benefiting from a more favourable arrangement.

To take effect, the Council and the European Parliament must finalise an agreement by 15 December. In Parliament, lead negotiator Christine Schneider (EPP) has drafted amendments calling for a two-year delay rather than one, according to a document dated 19 November and seen by Euractiv. Parliamentary officials say these proposals could still be aligned with the Council’s position.

MEPs have until today to submit amendments, ahead of next week’s plenary vote, which is scheduled for Wednesday.

© 2022 Copyright – All Rights Reserved by European Neighbourhood Monitor. – About | Privacy Policy