The Edge Markets (17/04/2025) - Malaysia produces palm oil, rubber, timber, and cocoa. The European Union Deforestation Regulation (EUDR) requires importers of cattle, cocoa, coffee, oil palm, rubber, soya, and wood as well as their derivatives to conduct extensive due diligence to ensure the goods entering the EU are not the result of deforestation. (Photo by Shahrill Basri/The Edge)

KUALA LUMPUR (April 17): The simplified European Union Deforestation Regulation (EUDR) still may not fully benefit producing countries, and further measures will be required, the Malaysian Palm Oil Council said on Thursday.

While the simplification package includes long-awaited clarifications, such as allowing annual due diligence statement submissions that can be passed along supply chains, there was no substantive update on the benchmarking process, the council noted in a statement.

“These simplifications may not fully benefit producing countries, as they are still required to meet the EUDR’s rigorous due diligence requirements, which takes up significant financial resources, especially for our smallholders,” said the council also known as the MPOC.

On Wednesday, the European Commission rolled out a set of revisions to simplify the EUDR aimed at easing compliance burdens, following strong complaints from the top producing nations, Malaysia and Indonesia.

A key feature of the revision is a proposal to significantly reduce the number of due diligence statements required to be submitted under the EUDR. The commission estimates the changes will reduce compliance-related administrative costs for companies by 30%.

“We believe that further measures will be necessary to achieve the commission’s 30% cost reduction target,” said MPOC chief executive officer Belvinder Kaur Sron. “To deliver meaningful savings for both producers and consumers, the EU should move towards greater alignment with existing national certification schemes that meet equivalent standards.”

Further, a broader designation of low-risk status would reduce duplication and streamline compliance, she said.

The EUDR is the EU’s signature regulation aimed at minimising deforestation. The regulation requires importers of cattle, cocoa, coffee, oil palm, rubber, soya, and wood as well as their derivatives to conduct extensive due diligence to ensure the goods entering the EU are not the result of deforestation.

Of the seven commodities, Malaysia produces palm oil, rubber, timber, and cocoa.

The MPOC said it acknowledges the commission’s efforts to ease the administrative burden on businesses while strongly supporting global initiatives to protect forests and preserve biodiversity.

“However, compliance mechanisms must reflect real differences, as a one-size-fits-all approach imposes unnecessary costs on low-risk producers, driving up prices for European consumers without delivering environmental benefits,” the council added.

Read also:
EU cuts red tape for importers before deforestation law kicks in

Read more at https://theedgemalaysia.com/node/751943