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40    FOCUS                                                                       JUL/AUG 2024 FDM ASIA | www.fdmasia.com






          December 30, 2024, many unanswered questions remain,   “at all levels” in the European Commission had shown him
          such as in particular the clarification of the use of reference   “everybody is aware that we have a problem that cannot be
          numbers and the associated scope of timber lists, the scope   solved without postponement”.
          and implementation of controls, the legal consequences or   As to the length of the delay, he added: “I would consider

          the handling of wood from legally converted forests”.   two years a reasonable time."
            It goes on to suggest that “The test phase revealed glaring   The German MEP said that while he agreed with the
          deficiencies and showed that it is not possible to implement   aims of the EUDR, the law as agreed in December 2022 by
          the regulation in accordance with the current requirements. As   the European Parliament and European Council had been
          a result, the wood-processing industries are currently facing   “turned into a bureaucratic monster”.
          an insurmountable task. There is a threat of considerable   Euronews emphasises that Liese’s call to delay the EUDR
          burdens for the relevant companies and distortions along   is not yet the official position of the EPP and that the large
          the entire wood value chain”.                      majority of EPP MEPs voted in favour of EUDR only last year.
            The Bundesrat motion calls on the German Federal   Euronews note that the EC declined to comment on Liese’s

          Government to obtain an implementation regulation from   statement, or on whether there were any ongoing discussions
          the  EU  in  the  short  term  that  is  legally  compliant  with  the   within the EC about reopening the file.
          WTO regulations that extends the deadlines for EUDR
          implementation, relieves raw material producers in Member   Will EUDR traceability requirement be watered down for
          States and regions where there is no demonstrable risk of   internal EU trade?
          deforestation  from  avoidable,  additional bureaucracy,  and   Judging from a report in the latest weekly newsletter of GD
          enables other market participants to apply it in a practical   Holz, the German timber trade association, the EC is indicating

          and legally compliant manner.                      that requirements for due diligence statements for internal EU
            Most recently, on 27 June, the head of environment policy   trade will be watered down while it is maintaining a hard line
          for the centre-right European People's Party, which emerged   with respect to imports from outside the bloc.
          victorious in recent EU Parliamentary elections, called explicitly   GD Holz note that in response to their questions to EC
          for a two-year delay to EUDR implementation.       officials at the 28th meeting of the “Multi-Stakeholder Platform
            Peter Liese, a German MEP since 1994 and freshly   on Protecting and Restoring the World's Forests” held earlier
          re-elected, told Euronews that recent contact with officials   in June, the EC “clarified that downstream non-SME market
                                                             participants (large companies within the EU) do not have to
                                                             provide geo-coordinates when submitting their due diligence
         PickPik                                             declarations”.

                                                                Based on the EC answers, GD Holz suggest that “This
                                                             means that geo-coordinates are only mandatory for the
                                                             beginning of the supply chain in the EU (=import or forest
                                                             ownership). It may be necessary to pass on geocoordinates
                                                             in individual cases, e.g. for high-risk goods, but it is not
                                                             always necessary to pass them on”.

                                                                GD Holz go on to suggest that “we see this approach
                                                             as a success for our lobbying work - the EU had previously
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