Proposal put forth by the Commission

Proposal put forth by the Commission

** simulations of EU Deforestation Regulation (EUDR) Favor Introduction of Zero-Risk Category**

In a significant development, the European Union's Agriculture Council meeting in Brussels on May 26, 2025, culminated in the endorsement of a proposal to introduce a zero-risk category within the EU Deforestation Regulation (EUDR). The move, principally supported by Agriculture Minister Alois Rainer and a vast majority of member states, signifies a shift towards more streamlined compliance procedures for the forestry and timber sector.

Germany, in alignment with the proposals of Luxembourg and Austria, has thrown its weight behind the proposed simplifications in the EUDR. The German Saw and Timber Industry Federation (DeSH) wholeheartedly welcomes this move, emphasizing the importance of a differentiated risk ranking system to avoid excess bureaucratic mandates and potential dilution of the regulation's essence.

Mrs. Julia Moebus, Managing Director of DeSH, commended Agriculture Minister Alois Rainer's stance in the council meeting: "We are appreciative that the concerns of the German forestry and timber industry, alongside all affected sectors, have been powerfully presented by Minister Rainer in today's EU Agriculture Council meeting."

"The current EUDR threatens to impose disproportionate bureaucratic burdens on our domestic industry due to a surge in documentation and verification requirements. The introduction of a zero-risk category within the country benchmarking is not only responsive to our industry's warnings, but it also champions a differentiated risk ranking," Moebus added.

However, the current classification system under the EUDR has sparked controversy. The European Commission's recent publication of country rankings has generated confusion, with only certain countries like Belarus, North Korea, Myanmar, and Russia designated high-risk for deforestation. The rest fall into the low-risk category. Critics argue that the classification system, as it stands, undermines the EUDR's stated objective of stemming global deforestation and raises questions about the fairness of the requirements for EU member states in light of their high standards of sustainable forestry management.

Moebus underscored, "The EUDR, in its current form, risks devolving into mere symbolic politics due to the current country benchmarking system. The absence of differentiation is not only problematic considering the actual situation in many countries, but it also raises concerns regarding the compatibility of requirements for EU member states with the high standards of sustainable forest management."

"While we fully endorse the goal of countering global deforestation, the EUDR's current form represents the incorrect approach. The introduction of a zero-risk category is indispensable for devising a practical and targeted solution that conforms to real-world scenarios. It is now essential for the Commission to modify the regulations accordingly, reduce unnecessary bureaucratic burdens for European companies, and safeguard the regulation from being overly diluted in terms of content," Moebus explained.

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The German Sawmill and Timber Industry represents an integral segment of the country's economy. Given that the German timber industry is primarily domestic or sourced from EU countries that fall into the low-risk category, adjustments to the EUDR framework could offer significant compliance cost reductions and administrative relief for DeSH members. The proposition of a clear zero-risk category could further streamline compliance for producers and traders specializing in timber and saw products from such areas, should the proposal materialize in future delegated acts or clarifications.

In conclusion, the evolving EUDR framework balances stringent anti-deforestation measures with graduated risk-based mechanisms that enable sectors like the German saw and timber industry to manage compliance efficiently. The forthcoming changes and clarifications in the regulation will be crucial in determining its ultimate impact on the industry and the EU's intensified efforts to combat global deforestation.

1. The German Saw and Timber Industry Federation (DeSH) has expressed support for the proposed simplifications in the EU Deforestation Regulation (EUDR), as they aim to avoid excess bureaucratic mandates and potential dilution of the regulation's essence in the forestry and timber sector.
2. Politicians and industry leaders, such as Agriculture Minister Alois Rainer and Mrs. Julia Moebus, Managing Director of DeSH, have expressed concerns regarding the fairness of the current EUDR requirements for EU member states, given their high standards of sustainable forestry management.
3. In the upcoming discussions on the EUDR, it is crucial for the Commission to consider the introduction of a clear zero-risk category, as this could offer significant compliance cost reductions and administrative relief for the German saw and timber industry and contribute to devising a practical and targeted solution that conforms to real-world scenarios, ultimately aiding the EU's intensified efforts to combat global deforestation.

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