Nová legislativa EU v rámci boje s odlesňováním - část první

New EU legislation to combat deforestation - part one

Editorial: The EUDR is quickly approaching its effective date, so let us focus on its specific issues in this series.

As we informed you last year, new legislation to combat deforestation has been approved at EU level. Its applicability (effectiveness), which, with exceptions, will take place as early as 30 December 2024, is approaching at an unstoppable pace.

Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (hereinafter referred to as "EUDR" or "the Regulation") is another one of the European Union's "green" regulations.

When talking about the EUDR, we often encounter a notion that its scope only covers situations where products cross EU borders, but this is not the case. The Regulation does not differentiate between "EU" and "non-EU" products and also applies to situations where products are traded on the internal market. If the relevant products do not comply with the EUDR, they cannot be placed on, made available on or exported from the market. Should this nevertheless happen, violators face severe sanctions.

Similarly, although the name would suggest it, the subject of EUDR is not "merely" fighting deforestation. Production in accordance with the relevant legislation of the country it takes place in is also one of the requirements of the Regulation. A wide range of local regulations, such as customs, labour or anti-corruption laws, as well as internationally protected human rights, must be taken into account.

Even requirements directly related to deforestation cannot be taken lightly, one example being the requirement of geolocation of the land on which the relevant commodities under the Regulation are produced to at least six decimal places of longitude and latitude.

Even the areas affected by the Regulation are wider than they might at first appear and go well beyond the timber industry. The Regulation will also significantly affect, for example, the food industry, the cosmetics and fashion industry, the automotive industry, wholesale and retail trade, and other sectors. Products affected by the Regulation include, for example, cattle meat, chocolate, industrial acids, a range of rubber products, broom handles and soya bean flour.

The amount of information that needs to be considered to properly grasp the Regulation can be overwhelming. That's why we have prepared a short series, in which we will focus on some of the issues raised by the new legislation. Keep an eye on our alerts so that you don't miss any episodes.

If you would like more detailed information, please contact the authors of the article or other members of the EY team with whom you work.

Authors:

Jan Turek

Veronika Juhasová