On 13 November 2024, the European Parliament agreed to delay implementation of the EU Deforestation Regulation (EUDR). The EU Parliament also voted in favour of several last-minute amendments which could considerably reduce the compliance burden for New Zealand exporters.

Key change: a new risk category

Countries will now be classified into four risk categories: low, standard, high, no risk. Products from no-risk countries will only have to comply with a simplified set of requirements to encourage sustainable practice and reward responsible sourcing. 

Exporters of products from no-risk countries will have to show that the products have been produced in accordance with the country's relevant legislation and, if requested, will have to make available:

• The trade name and type of the products
• The quantity of products
• The country of production, and what part of that country, where relevant
• The name, postal address, and email of any person or business who has supplied them with the products
• The name, postal address, and email of any business, operator, or trader that they have supplied products to
• Adequately conclusive and verifiable information that the products are free of forest degradation
•  Adequately conclusive and verifiable information that the commodities have been produced in accordance with the relevant legislation of the country of production.

Will New Zealand be deemed no risk?

To be deemed no risk, countries must have:

• stable or increasing forest area development compared to 1990; 
• signed the Paris Agreement and international conventions on human rights and on preventing deforestation; 
• regulations on preventing deforestation and forest conservation at national level and the regulations must be strictly implemented, enforced in full transparency and monitored.

New Zealand’s position looks promising when measured against these criteria:

• New Zealand’s total forest area has increased since 1990, though native forest area has decreased.
• New Zealand is a signatory to:
  • The Paris Agreement
  • Core United Nations international human rights instruments
  • UN Convention to Combat Desertification
  • Convention on Biological Diversity.
• The Emissions Trading Scheme prevents deforestation of:
  • Pre-1990 forest land and
  • Post-1989 land registered in the ETS as standard or permanent forestry.

New Zealand exporters will be hoping for a no-risk classification, as it will relieve them of the requirement to provide geolocation data for beef and wood exports. 

While early indicators suggest New Zealand could qualify for no-risk status, the European Commission has until 30 June 2025 to finalise the country classification system. A no-risk classification would significantly streamline compliance requirements for New Zealand's beef and wood exporters to the European market. 

In the meantime, exporters should stay informed about the developing classification criteria and review their documentation and compliance systems.

If you have any questions on the changes to the EUDR or what it means for your business, our experts can help.