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European Parliament votes to delay deforestation rules with one year

Yesterday, a majority of Members of European Parliament voted in favour of postponing the EU’s new deforestation regulation (EUDR) with one year, so it will only enter into force in January 2026.

The European People’s Party, which is the biggest group in the EP, submitted a whole range of amendments, ultimately however pulling amendments that would have foreseen a 2 year delay.

An amendment that was passed foresaw the creation of a new category of countries that pose “no risk” to deforestation, in addition to the existing three categories of “low”, “standard” and “high” risk.

In a statement, the European Parliament notes that countries enjoying “no risk” classification “would face significantly less stringent requirements as there is a negligible or non-existent risk of deforestation. The Commission will have to finalise a country benchmarking system by 30 June 2025.”

In a press release, Malaysian Palm Oil Council (MPOC) chief executive officer Belvinder Kaur Sron warns that “a ‘no risk’ category in the four-tier classification system could provide a convenient off-ramp for legislators to exempt domestic companies from the legislation, which smacks of economic protectionism.”, adding “A two-tiered approach to regulation – protecting European companies while penalising their international trade partners – would send the wrong message to world, given that countries like Malaysia have worked so hard to comply with EUDR.” Other trading partners echoed similar concerns.

Originally, the EU’s deforestation legislation strained good trade relations between the EU and South East Asian palm oil exporters, like Malaysia and Indonesia. They considered it particularly unfair that despite NGOs like Global Forest Watch praising them in 2023 for achieving a sharp reduction in forest loss, the EU refuses to declare their standards as equivalent. This especially given that already an estimated 93% of palm oil imported into Europe is sustainable and that the UK does accept Malaysia’s anti-deforestation standard as equivalent.

The protest against EUDR has spread and after also Brazil and the United States demanded a delay, the European Commission decided to give in. Crucial was also pressure from Germany. CDU MEP Peter Liese even called the EU’s new deforestation rules a “bureaucratic monster.” After also EU member states agreed, the European Parliament now also rubber-stamped the one year delay. The changes made by MEPs still however will need to be approved by EU member states before the end of the year, in order to avoid that EUDR enters into force from 2025 on.