Benchmarking reforms: New “negligible risk” category for EUDR on the horizon

Concerns are escalating among Indonesian palm oil producers following the latest proposal tweaks for the European Union’s Deforestation Regulation (EUDR), which now looks likely to include a fourth-tier category that would allow countries to argue they should be classified as having a “negligible risk” of being linked to deforestation.

Once again, the EUDR is at the center of controversy over the details of risk categories. It already included low, medium, and high risk categories ranking countries on the level of risk.

The goal of the EUDR is to guarantee that the products European consumers purchase do not contribute to deforestation or forest degradation worldwide. The EUDR came into force on June 29, 2023, but its main provisions will apply from December 30, 2025, for medium and large companies, while micro and small enterprises have until June 30, 2026, to comply.

Evolving landscape of EUDR

The EU’s 27 member states have already been categorized as “low risk,” but now another category is added to the benchmarking system following a vote to propose the fourth risk tier at the Environment, Climate and Food Safety Committee last week. 

Although the full details of what it would mean to be classified as “negligible risk” are not yet clear, the fourth classification would go beyond “low risk.” 

The classification of countries into the different risk categories affects the due diligence required from food businesses when sourcing key commodities such as cocoa, coffee, palm oil, and soy. 

Pushback to classification changes

Some outside of the EU accuse the bloc of showing preferential treatment to EU member states, and have branded the new benchmarking “a farce.”

Many believe the “negligible” category would create a fast lane for some countries and give a free pass to EU farmers by creating a dynamic of exceptions. 

The organization sent a statement when Food Ingredients First asked the Roundtable on Sustainable Palm Oil (RSPO) to weigh in on the debate. 

“The RSPO supports the overall objective of the EUDR to diminish the EU’s contribution to global deforestation. However, the RSPO does not take a position on the EU’s benchmarking system as this is beyond the scope of our work,” it says. 

“The RSPO remains committed to providing a credible, globally recognized certification standard that helps RSPO members meet sustainability requirements, including the EUDR, regardless of their country of origin.”