From 30 December 2024, cattle, cocoa, coffee, oil palm, rubber, soya and wood as well as products thereof may only be made available on or exported from the EU market if they are deforestation-free, have been produced in accordance with the relevant national regulations and are covered by a due diligence statement. This is the essential content of the EU Deforestation Regulation (EUDR).  Deforestation-free means that the relevant forest areas have not been converted into agricultural land after the cut-off date (31 December 2020). In the case of wood, no primary or naturally regenerating forests may have been damaged after the cut-off date. The EU Commission creates a benchmarking system of producing countries with three risk categories. For countries with a normal or high risk, a risk assessment and risk mitigation must be carried out.

What does the EU Deforestation Regulation entail for companies?
In the EU, the legal conformity of timber has had to be proven since 2013; geographical information on land is also already required when for example applying for EU subsidies. If a country is classified as a low-risk country, the obligation to assess and mitigate risks no longer applies. In most cases, the new obligations to be fulfilled are therefore manageable for European companies. With regard to Austria, it should be noted that most forests are already used for agricultural purposes and are therefore not covered by the EUDR. Nevertheless, small companies in particular must be given the opportunity to prepare for the new regulations in good time. However, this is made more difficult as Austria still lacks a national law with the specific requirements.

Why is the regulation beneficial for countries like Austria?
Although the total forest area in Austria is increasing, the quality of the forest and biodiversity have been in serious decline for years. There are shortcomings in connection with the clearing of Natura 2000 protected areas and the way in which individual Austrian companies extract their timber abroad. This can now be counteracted by greater control obligations. By finally introducing equal conditions throughout the EU, it is also ensured that companies operating sustainably are no longer at a competitive disadvantage. This could become particularly relevant if an EU-Mercosur agreement is concluded, which could further liberalise trade with Latin America and put domestic agriculture under considerable pressure. Furthermore, the EUDR brings additional empowerment for consumers, as companies will be legally obliged to ensure sustainable production regardless of voluntary certifications. As a result, they will no longer be able to pass on responsibility to consumer buying behaviour.

What can the EU Deforestation Regulation achieve in third countries?
The fact that deforestation, apart from being an ecological problem, is also an economic and human rights problem, has not been addressed clearly enough in the regulation. The extent to which the EU Commission and the EU Member States co-operate with third countries will therefore be crucial to actually reduce deforestation at global level. One example of this is the Team Europe initiative on deforestation-free supply chains, which, with an initial investment of 70 million euros, aims to ensure that small farmers in third countries are supported in their implementation efforts and are not forced out of the market. National preparatory measures have already had a positive impact on the ground: for example, the Côte d'Ivoire government has distributed ID cards to farmers to improve the traceability of raw materials and enable electronic payments. Contrary to the voices of the domestic agricultural sector, which accuse the EU deforestation regulation of being “unfeasable”, cocoa farmers from Ghana and Cote d'Ivoire report that they are prepared for the implementation and that their traceability system will be ready for use in October. That is why they also recently sent a letter to the EU Commission stating that they reject any further delay in the start of application; they also criticise targeted lobbying attempts within the EU.

What happens next?
Instead of continuing to work towards changes in content and a postponement of the start of application, all EU Member States must finally present national accompanying laws. The current manoeuvring means planning uncertainty for companies and shortening the preparation period. The EU Member States must ensure effective application and guarantee that the competent authorities have appropriate powers and sufficient resources.

Further Information
AK EUROPA Position Paper: Regulation on the making available of certain commodities and products associated with deforestation and forest degradation
AK EUROPA: EU law to ensure deforestation-free supply chains
AK Infobrief EU and International: Gerechte Weltwirtschaft: Konzerne auf der Bremse  (German only)
Greenpeace: Open Letter to Federal Minister Norbert Totschnig
WWF: Faktencheck und Erläuterungen zur Umsetzung der EU-Verordnung für entwaldungsfreie Rohstoffe und Produkte (German only)