* EUDR (The European Union’s Deforestation Regulation) is a new EU initiative aimed at curbing deforestation driven by forestry and agricultural activities worldwide

The Council of the European Union has approved the text of the EU Deforestation Regulation. The European Parliament had already voted on the agreement text. The next step is the publication of the text; the regulation will enter into force and become applicable after 18 months (after 24 months for small and medium-sized enterprises).

A few weeks after the European Parliament vote, the Council of the European Union has also adopted the text of the EU Deforestation Regulation (EUDR).

On 10 May this year, ambassadors in the Council agreed to vote on the text of the agreement reached in the trilogue in December 2022, which was finalised by European ministers on 16 May this year.

At the meeting of ambassadors, no country voted against, and five countries abstained, including Sweden, which questioned the administrative burden this regulation could place on small businesses. The Presidency (Sweden) also criticised the lack of clarity in the control and traceability mechanism. Portugal and Slovakia criticised the definition of forest degradation, which, in the opinion of the ambassadors, could hinder nature restoration measures.

Next steps:

### The regulation is published in the Official Journal of the EU (the publication process can usually take from a few days to a few weeks after final Council approval).

### The regulation enters into force 20 days after its publication.

### Businesses will have to comply with all requirements of the regulation 18 months after it enters into force.

### Businesses registered as small and medium-sized enterprises (SMEs) on 31 December 2020 will be granted 24 months.

The next 18 months will be devoted to preparatory work for the implementation of the regulation, including the following measures:

Identification and development of guidelines and tools to meet EUDR requirements: The European Commission has decided to set up two working groups (including at least one representative from the timber industry):

– A traceability group (including due diligence requirements);

– A smallholder engagement group.

The aim of both groups is to help a multi-stakeholder platform gather information and elements that can be used to interpret requirements and facilitate the implementation of the regulation. Participants will be voluntary platform members (Member States, third countries, NGOs, and trade associations).

– Country risk benchmarking: Within 18 months of the regulation entering into force, the European Commission will classify countries or individual regions as low, medium, or high risk through an objective and transparent assessment. Products from low-risk countries will therefore be subject to a simplified due diligence procedure, while operators will be subject to proportional controls based on the country's risk level.

– Creation and launch of an information system (registry): This information system will allow operators to submit due diligence statements and check existing declarations. This registry will be linked to customs and will be accessible to competent authorities for the purposes of enforcement.