The European Commission clarifies what “negligible risk” of deforestation means
Although a further extension had been discussed, the guidance document conclusively confirms that the deadline remains December 30, 2025, and June 30, 2026, for micro or small businesses.
Regarding the term "negligible risk", the new EC document states that "a product is considered to be of negligible risk if, following a full assessment, it is concluded that there is no cause for concern regarding its links to deforestation".
The due diligence process required for a raw material to reach the negligible risk category is simplified for lower-risk countries, with fewer steps required, provided operators can ensure that all elements of the relevant product were produced within the low-risk country in question.
Operators other than SMEs must verify that adequate upstream due diligence has been conducted. This does not necessarily involve verifying each due diligence declaration individually, the document clarifies, but rather ensuring that suppliers have an operational and up-to-date due diligence system.
The document also clarifies which local laws are relevant for legislation: those related to the production area. These include land use rights, environmental protections, forestry regulations such as those related to biodiversity conservation, traditional land use rights of Indigenous Peoples, and labor rights applicable to those working in the production area. Operators should ensure they are aware of the relevant legislation.
Finally, it is emphasized that a product is only linked to deforestation if it is carried out for agricultural use. Forest clearance for purposes other than agricultural use does not fall within the regulation's definition of "deforestation".
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