EU releases detailed guidelines on anti-deforestation law

The European Commission unveiled on Wednesday (Oct 02) a set of guidelines divided into 11 chapters that commercial operators must follow to comply with the European Union Anti-Deforestation Regulation (EUDR). However, the methodology for classifying the risk levels of exporting countries—a major concern among exporters—has yet to be detailed.

The Commission had promised to develop a system and publish the list of countries by December 30. In the Q&A document released on Wednesday, the EU’s executive branch stated it would present the methodology “in future meetings of the multi-stakeholder platform on deforestation and other gatherings.” Article 29 of the law stipulates that quantitative criteria such as deforestation rates, agricultural expansion, and other socio-environmental information from governments and third parties should be considered.

Countries will be classified as low risk, standard risk, or high risk. The higher the risk, the greater the scrutiny applied. “A large majority of countries worldwide will be classified as ‘low risk’. This will give the opportunity to focus collective efforts where deforestation challenges are more acute,” the Commission noted. For countries expected to be classified as “high risk,” the EU aims to work collaboratively to mitigate those risks.

Please refer to the chart below to verify Brazil’s top ten most exported commodities to European ports in containers between January and August this year. The data comes from DataLiner, Datamar’s master intelligence product.

Top Exports to the EU in Containers | Jan 2024 – Aug 2024 | TEUs

Source: DataLiner (click here to request a demo)

On the procedural front, the Commission offered new guidance. Operators will not be obligated to use reference maps from the EU Observatory for their risk assessments and may utilize other maps with greater detail. This addresses concerns from exporters of tree-based commodities like coffee, palm oil, and timber, who noted that EU-developed maps did not distinguish between planted and native forests.

Regarding beef products, only those from animals born after June 29, 2023 (the date when the law took effect, allowing for an 18-month implementation period), will need to comply with the EUDR—a sensitive issue within the industry.

For bulk commodities that pass through silos, such as soybeans, if only a portion of the stored volume is destined for the EU, exporters must prove the origin of at least 200% of the previously stored amount. If the silo is completely emptied for EU-bound products—which is rare—the proof of origin should only cover the stored volume.

The Commission reiterated that proof of origin for agricultural products should refer to the production polygon rather than the entire farm. In cases where polygons are smaller than four hectares or where livestock is stationary (such as in feedlots), exporters may provide a single geolocation point (latitude and longitude).

Concerning wood products like furniture and wood components, the Commission specified that exporters must prove the geolocation of all the wood used.

The EUDR also mandates that producers comply with the laws of their countries of origin, including national and state laws and existing jurisprudence. They must present official documents from public authorities, contracts, court decisions, or audits—all of which must be “verifiable.” The EU’s executive branch promised to offer further guidance on this documentation.

By Camila Souza Ramos, Rafael Walendorff, Assis Moreira, Globo Rural.

Source: Valor International

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