EU Lawmakers Reject Key Country Risk System in Deforestation Regulation, Delaying Implementation

European Union lawmakers have voted to reject a key component of the EU Deforestation Regulation (EUDR), specifically the benchmarking system that categorizes countries by their deforestation risk.

This decision marks a significant setback for the regulation, which aims to prevent products linked to deforestation from entering or leaving EU markets.

The regulation, introduced in 2021, targets commodities such as palm oil, beef, timber, coffee, cocoa, rubber, and soy, requiring companies to trace these products to their source and prove they are deforestation-free.

The rejected benchmarking system would have classified countries as low, standard, or high risk, impacting the compliance requirements for businesses sourcing from these regions.

Critics, including the European People’s Party (EPP), argued that the system relied on outdated data and failed to account for current land-use dynamics and forest degradation, potentially misclassifying countries and placing undue burdens on producers.

The EPP has called for the introduction of a new “no risk” category for countries with stable or expanding forest areas, claiming this would make the rules fairer and more effective for farmers and industry stakeholders.

Environmental groups have voiced concerns that the vote could further delay the implementation of the EUDR, which is already set to take effect for large companies in December 2025 and for smaller enterprises in June 2026.

Greenpeace warned that developing a new methodology for country classification before the regulation’s deadline is unlikely, raising the risk of additional delays. Despite these challenges, environmental advocates insist the regulation must be enforced according to the agreed schedule to ensure meaningful progress against global deforestation.

Rejecting the country-risk classification pushes EUDR implementation timelines but leaves the substantive traceability, geolocation and due-diligence obligations exactly where they were for cocoa, coffee, palm, soy, rubber, cattle and timber. Our supply-chain-and-operations and sustainability-due-diligence teams help EU importers and non-EU exporters build traceability infrastructure that survives whatever this classification debate settles into.