Nová legislatíva Európskej únie v oblasti regulácie odlesňovania

On 30 December 2024, Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the availability on, and export from the Union market of certain commodities and products associated with deforestation and forest degradation (EUDR), will come into effect. Its aim is to ensure that certain products and commodities imported into, traded within, or exported from the EU do not contribute to deforestation or forest degradation.

The commodities covered by the EUDR are clearly specified by the regulation, and they include cattle, cocoa, coffee, palm oil, rubber, soya, and wood, as well as derivative products or animals whose food contains them.

The new rules apply to all importers, exporters, manufacturers, and processors of the relevant commodities, regardless of the size of the business, as well as to large enterprises that are merely sellers or distributors of these commodities.

Given the broad application of the EUDR and the significant obligations it imposes on supply chains, we are beginning to observe many European buyers approaching our clients with requests to comply with the new legislation.

In short, the new rules prohibit placing certain commodities and derivative products on the EU market unless they have undergone a due diligence process. The outcome of the due diligence must be an assessment of negligible risk that the commodity in question is associated with deforestation or forest degradation.

In conducting due diligence, businesses must gather adequate and verifiable information to ensure that the relevant goods do not contribute to deforestation and their production was in compliance with the applicable legal requirements of the country of origin. This information must include:

• The country of production and the geolocation of the land
• Details of suppliers and buyers
•  Documentation proving compliance with the legal requirements of the country of origin at the time of production

Subsequently, businesses must analyze the information they have compiled and assess the risks of non-compliance with EUDR requirements. Such analysis will consider the:

• Risk level of the country of production
• Presence of forests and Indigenous peoples in the country of origin, including the level of communication with them
• Prevalence of deforestation and forest degradation
• Reliability of the information and documentation provided
• Complexity of the supply chain

If the risks identified risks are not negligible, businesses must take measures to mitigate them. This may include requesting additional information, conducting independent surveys and audits, and building capacity and investments to ensure compliance with the regulation.

Businesses that place the relevant commodities on the market must communicate the reference numbers of due diligence declarations further down the supply chain. They must also provide all necessary information to demonstrate that they conducted due diligence which identified no more than a negligible.

Non-compliance with the obligations set out by the EUDR can lead to sanctions, including:

• Fines proportional to the environmental damage or the value of the commodity/product, up to 4% of the total annual turnover of the business
• Confiscation of the commodities/products concerned, and the income generated from their sale
• Import bans
• Temporary exclusion from public procurement or access to public funds
• Temporary prohibition from placing the relevant commodities/products on the market
• In the case of repeated or serious violations, a ban on conducting simplified due diligence