The enforcement of the EU\u2019s Regulation on Deforestation-free Products<\/a> (EUDR) is likely to begin at the end of this year as planned despite calls for a delay, according to an industry analyst.<\/p>\n <\/p>\n Concerns about the impact of the regulation on some sectors globally have raised the prospect of a delay to the imposition of the new rules. <\/p>\n Most notably, a US Department of Agriculture spokesperson told Just Food<\/em><\/a> the country\u2019s government was \u201cconcerned\u201d about \u201chow the regulation will be implemented and the impact it may have on US producers that engage in sustainable production practices\u201d.<\/p>\n Europe\u2019s centre-right European People\u2019s Party has called for a delay<\/a> as a result of such international pressure, while bodies in the likes of the timber<\/a> and coffee<\/a> industries have also voiced support for pushing back enforcement of the regulation.<\/p>\n However, Caroline Midgley, director of biofuels and oleochemicals research at GlobalData, has told Just Food<\/em>: \u201cI think it is very unlikely that the EU will delay enforcement of the EUDR. However, within the regulations, the EU has a lot of scope to vary how enforcement is achieved. Through the EU statutes, they could delay sanctions, especially if non-compliance is due to their systems not being ready.\u201d<\/p>\n The EUDR came into force on 29 June 2023, repealing the EU Timber Regulation<\/a>. Operators and traders were given 18 months from that date \u2013 the end of this year \u2013 to comply with the new regulation, which is aimed at helping to reduce greenhouse gas emissions and limit biodiversity loss by requiring companies dealing in certain commodities within the EU to prove that their product and its value chain are deforestation-free.<\/p>\n The requirements of compliance within supply chains are likely to result in product price increases for consumers, according to a report by GlobalData, Just Food<\/em>\u2019s parent.<\/p>\n The study, EU Sustainability Regulations: How the EUDR and other Sustainability Regulations will impact consumer markets<\/em><\/a>, suggests the cost of compliance for companies operating in the supply chains for oil palm products and their derivatives and rubber alone could hit the $1.5bn figure, with \u201ca good proportion of these compliance premiums\u201d are likely to be passed onto EU consumers in the form of price increases.<\/p>\n The industries expected to be most affected are food, drink and personal care, with products like coffee, chocolate, soy-based meat alternatives and shampoo making use of affected ingredients. The automotive industry is another that is likely to be hit through tyres and other components, the packaging industry through paper and cardboard and the fashion industry<\/a> through fabrics and materials.<\/p>\n It is part of a wider slate of initiatives being introduced by the EU aimed at affecting sustainability practices more broadly as it pursues climate neutrality by 2050<\/a>. These also include the European Green Deal<\/a>, the\u00a0EU Biodiversity Strategy for 2030<\/a>\u00a0 the\u00a0Farm to Fork Strategy<\/a>, the Directive for Empowering Consumers for the Green Transition<\/a> and European Circular Economy Action Plan<\/a>.<\/p>\n Of the EU\u2018s efforts, Fred Diamond, senior food and beverages consultant and analyst at GlobalData, said: \u201cThe aims of the EUDR are understandable and cutting greenhouse gas emissions and protecting biodiversity is essential. However, there could be some disruption ahead.<\/p>\n \u201cThe extra demands of the EUDR could lead some commodity suppliers in what the EU terms \u2018third countries\u2019 to move away from the EU and increase trade with countries that impose fewer regulatory requirements such as China. Some food categories, such as plant-based meat, may have to reformulate and switch to other protein sources, such as pea protein, if the result of the EUDR is an increase in the price of soya for food production.\u201d<\/p>\n <\/p>\n <\/p>\n <\/p>\n![\"Email](\"https:\/\/www.packaging-gateway.com\/wp-content\/themes\/goodlife-wp-B2B\/assets\/images\/newsletter-new.svg\")
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