EU Parliament Pushes Back on EUDR Deforestation Risk Ratings

Overview

The European Parliament rejected the Commission’s country-risk classification system under the EU Deforestation Regulation. Lawmakers say the current approach relies on outdated data, lacks transparency, and fails to reflect actual deforestation risks.

Photo from EU

The Opposition
On 9 July 2025, the European Parliament adopted a resolution opposing the Commission Implementing Regulation (EU) 2025/1093. The regulation classifies countries into low, standard, or high deforestation risk categories under the EU Deforestation Regulation (EUDR). The resolution passed with 373 votes in favor, 289 against, and 26 abstentions.

Why Parliament Objected
Lawmakers raised concerns about the regulation’s methodology and effectiveness:

  • Outdated data

    • Relies on forest data from 2020

    • Ignores recent deforestation and land-use trends

  • Unclear definitions

    • Uses general forest loss instead of EUDR’s specific definition of deforestation

    • May misclassify legal, sustainable forestry as harmful

  • Lack of transparency

    • Risk indicator thresholds are not well justified

    • No explanation of how indicators are weighted

  • Oversimplified categories

    • Uses just three levels of risk

    • Fails to reflect differences within large or diverse countries

  • No process for reassessment

    • Countries can’t easily move between categories

    • Weakens the incentive to improve forest governance

What Parliament Wants

The resolution calls for the Commission to:

  • Withdraw and revise the regulation

  • Use real-time satellite data and updated indicators

  • Add a “negligible risk” category for top performers

  • Allow more frequent country reassessments

  • Consult stakeholders including producers and indigenous groups

  • Support traceability systems and governance reforms in high-risk areas

What This Means for Businesses

  • Companies may see new sourcing restrictions or due diligence requirements shift

  • Risk assessments could vary by region, not just country

  • Transparency in how countries are classified may increase

Looking Ahead

While the resolution isn’t legally binding, it increases pressure on the European Commission. A revised risk classification is likely by the next review cycle in 2026. Until then, companies should keep ESG teams engaged and stay alert for changes in EUDR enforcement.


Read more here!

Next
Next

EU Pauses Sustainability Reporting: What the Two-Year Delay Means for Businesses