ENVIRONMENT: 18 COUNTRIES, INCLUDING ITALY, URGE COMMISSION TO SOFTEN DEFORESTATION REGULATION

Ministers argue that while the Regulation is a milestone in global forest protection, it imposes disproportionate bureaucratic burdens on countries where the problem is "demonstrably insignificant."

Brussels – Eighteen European Union countries, including Italy, are urging Brussels for further simplification of the EU Deforestation Regulation (EUDR). Ministers from Austria, Bulgaria, Croatia, Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden have sent a letter to the European Commission and to Commissioners for Environment, Jessika Roswall, and Agriculture, Christophe Hansen.

They state that while the law is "a milestone in global forest protection," it "does not sufficiently account for countries with effective forest protection laws and negligible deforestation risk." This results in "obligations imposed on farmers, forest owners, and operators remaining onerous and unjustified for countries with negligible deforestation risk" and being "disproportionate to the regulation's objective, which is to prevent deforestation where it occurs." Therefore, they "urge the European Commission to quickly include the Deforestation Regulation in its simplification plans to ensure coordinated and effective implementation" across the Union. In the meantime, they suggest it "might be appropriate to further postpone the regulation's application date."

Background and Concerns

The EUDR, which entered into force on June 29, 2023, aims to tackle the main driver of deforestation: the expansion of agricultural land linked to the production of commodities such as cattle, wood, cocoa, soy, palm oil, coffee, rubber, and derived products like leather, chocolate, tires, or furniture. Under the regulation, any operator or trader placing these products on the EU market, or exporting from it, must be able to demonstrate that the products do not originate from recently deforested land or contribute to forest degradation.

Initially set to apply from December 30, 2024, the EU granted an additional 12-month phase-in period last December, making the law applicable on December 30, 2025, for large and medium-sized enterprises, and June 30, 2026, for micro and small enterprises. This was intended to give stakeholders more time to align with the requirements.

The letter emphasizes that "sustainable forest management is fundamental for developing climate-resilient forests, ensuring species diversity, and enhancing the bioeconomy with multiple products and services." It also notes that "thanks to the tireless work of Member States, the area covered by forests and wooded areas in Europe has increased in recent decades." Furthermore, the 18 ministers acknowledge that the "Regulation constitutes a milestone in global forest protection, providing a solid legal basis for EU action against deforestation, while strengthening international cooperation and including support measures for small producers in third countries."

However, they argue that "in its current form," the text "does not sufficiently account for countries with effective forest protection laws and negligible deforestation risk." They contend that "instead of focusing on deforestation where the risk is highest, the Regulation imposes disproportionate bureaucratic burdens on countries where deforestation is demonstrably insignificant."

Call for Simplification and Competitiveness

The signatories highlight the Commission's commitment to placing competitiveness "at the heart of its overall and economic agenda" and ensuring "European businesses can thrive in the global market and ensure sustainable prosperity for all EU citizens." These elements, according to the ministers, conflict with the regulation. They observe that "given the considerable complexity" of the regulation's provisions, and to allow all parties (farmers, forest owners, operators, competent authorities) to fulfill their obligations, the Commission last year proposed postponing the application date to December 30, 2025. This proposal was accepted and adopted by co-legislators in December, along with a Commission declaration "attesting its commitment to reducing burdens for businesses by eliminating superfluous administrative burdens."

The ministers acknowledge that "guidelines for simplification and administrative burden reduction were adopted by the European Commission in April 2025." However, they stress that "the obligations imposed on farmers, forest owners, and operators remain onerous and unjustified for countries with a negligible deforestation risk. They are disproportionate to the regulation's objective, which is to prevent deforestation where it occurs."

Another issue raised in the letter is the cost. The obligations "generate additional costs for both businesses and administrations, thus undermining the overall objective of improving competitiveness, not only in the bioeconomy sector but also in a range of other sectors, including livestock, and adapting forests to climate change through active and sustainable forest management," the ministers clarify. Moreover, the letter warns of "the concrete risk that increasing raw material prices, caused by the complex obligations" of the regulation, "will lead to increased production costs and prices, with the associated risk that our producers will relocate their production outside the European Union."

Traceability and National Systems

Another problematic aspect, according to the EU countries, is the complete traceability of raw materials within the EU market, which, according to the ministers of the 18 Member States, "will be extremely difficult, if not impossible for some of them." Conversely, the letter observes that "excessive and redundant due diligence obligations should be eliminated in countries where agricultural expansion does not significantly reduce forest area," and that, "in countries designated as low deforestation risk, it should be accepted that existing national systems are sufficiently robust to demonstrate that compliance with the EUDR can be adequately controlled."

For example, the ministers argue that "it is essential to simplify the requirements for raw materials and products already placed on the Union market, as well as for farmers and foresters in countries or regions with a negligible deforestation risk." Furthermore, "it is crucial to facilitate better integration of existing national forest datasets of Member States with the Commission's information system."

Finally, "in the context of a general desire to simplify EU legislation, we reiterate that many Member States have already expressed a strong need for a more substantial reduction of administrative burdens" related to the Deforestation Regulation. They therefore "urge the European Commission to quickly include the Deforestation Regulation in its simplification plans to ensure coordinated and effective implementation of the EUDR across the EU." Meanwhile, while awaiting the Commission's simplification proposals, they suggest it "might be appropriate to further postpone the regulation's application date."