Minister for Agriculture, Fisheries and Forestry the Hon Julie Collins
Australia and New Zealand have welcomed the European Commission’s decision last week to delay implementation of a law banning the import of commodities linked to deforestation by a year. Source: Timberbiz
The law had been hailed as a landmark in the fight against climate change, but countries and industries from Brazil to Malaysia say it is protectionist and could end up excluding millions of poor, small-scale farmers from the EU market.
There were also widespread warnings from industry that the EU deforestation regulation, or EUDR, would disrupt the European Union’s supply chains and push up prices.
The Minister for Agriculture, Fisheries and Forestry Julie Collins said the law imposed complex due diligence requirements that would create technical barriers for a range of Australian agricultural products.
She said it had the potential to affect around $234 million in Australian exports.
“A delay in implementation of the Regulation will provide an opportunity to further work with the EU to ensure the measure does not impose requirements that create unnecessary barriers to Australian exports,” Ms Collins said.
“We will continue advocating for our world-class agricultural products and work closely with State and Territory governments to support the sustainable management of our valuable forests.”
The Australian Forestry sector welcomes the European Union Commission’s announcement of a one-year delay in the implementation of the European Union Deforestation Regulation (EUDR). The EUDR, designed to ensure that products sold in the EU are not linked to deforestation, was initially set to take effect on 30 December 2024. However, countries from around the world and Australian forest growers had raised concerns that neither EU countries nor international systems were prepared to meet the original deadline, putting compliant businesses at risk.
Australian Forest Products Association CEO Di Hallam praised the EU Commission’s decision, highlighting the importance of this delay for Australian companies.
“We welcome the one-year extension, which will give Australian forest growers the time to begin using the tracing program without the risk of penalties, while the EU addresses technical issues,” Ms Hallam said.
“The Australian forestry sector supports the EUDR’s goal of addressing products linked to deforestation. However, the initial deadline was unrealistic. The systems required for compliance simply weren’t ready, and this would have unfairly impacted Australian growers who were prepared to meet the requirements.”
Ms Hallam also thanked key Australian Government ministers for their advocacy, which contributed to the extension. “We’re grateful to Australian Government Ministers, including Ms Collins, Minister for Trade and Tourism Senator Don Farrell, and Minister for Employment and Workplace Relations Senator Murray Watt, for their advocacy.
“Their leadership helped ensure that Australian businesses will have the time needed to meet the new requirements,” she said.
Australia’s forestry sector operates under some of the strictest environmental and sustainability standards in the world, with forest management practices designed to ensure renewal and long-term sustainability. Ms Hallam emphasised the need for further work to ensure the regulation’s implementation does not create unnecessary trade barriers for responsible producers, producers from developing nations and small land holders.
“It is crucial to understand that deforestation refers to the permanent removal of forest, when the forest is cleared and the land then used for another purpose,” she said.
“AFPA represents the sustainable forest producers who replace the trees that are harvested to meet the demand for fibre, regardless of whether they are sourced from plantation estates or our sustainably managed native forests.
“We look forward to working with both the EU and Australian governments over the next year to ensure a smooth transition and ultimately the delivery of a deforestation free EU market,” Ms Hallam said.
Wood Processors and Manufacturers Association of New Zealand Chief Executive Mark Ross said his organisation had been working on the assumption that EUDR would happen in December this year.
“So, we are quite advanced in our solution development for our wood product exporters, but having more time to further develop our solution is beneficial,” he said.
“The proposed 12-month delay is helpful in fine tuning our Due Diligence systems and ensuring that they are right.
“Our approach has been guided by a specialist working group that includes WPMA members, Forest Owners’ representatives, and government.”
Since June, the working group had worked through the core components of the regulations, consulted with their European customers, and advanced the necessary documents to meet the regulations as they currently read.
“Without the support of the Forest Owners, we would be unable to make the progress that has been achieved,” Mr Ross said.
“Take for example on the supply side where the key information required in the due diligence statements is the provision of geo-coordinates of all plots of land where the wood was harvested, and evidence that the wood is deforestation free, i.e. before and after proof.
“This detail requires technical expertise and collaboration, something that has been readily forthcoming from the forest industry.”
New Zealand exported $100 million of wood products to the EU last year, which makes it a smaller market in the context of $2.8 billion of total exports, but it is an important market for value-added wood products and a critical market for some companies.
“From what we have seen with the EUDR over the last few months nothing is certain. We hope to see the 12-month delay passed by the EU Parliament but are conscious that the clock keeps ticking, hence our work on solution development remains a WPMA priority,” Mr Ross said.
National Farmers’ Federation President David Jochinke said it was pleasing to see the EU had listened to governments and made a sensible decision to delay implementation.
“We understand this will be subject to the EU Parliament and we urge that decision to be made swiftly,” Mr Jochinke said.
Although this announcement is a step in the right direction, the EU has shown no inclination to repeal the EUDR or to redefine the troubling definitions of what it considers to be a forest.
NFF also understand that a process to establish the next European Commission is currently underway and seeks renewed Government engagement with cabinet leaders once that process is finalised early next month.
“If this proposal is nothing more than a stay of execution then we should be contemplating other avenues of resolution such as the World Trade Organisation processes, in concert with other jurisdictions,” Mr Jochinke said.
