Why a 'No-Risk' Category Would Weaken EU's Landmark Anti-Deforestation Law (EUDR)

The World Resources Institute argues that introducing a 'no-risk' category to the EU Deforestation Regulation (EUDR) would undermine the law's effectiveness by creating loopholes for 'deforestation laundering' and risking World Trade Organization (WTO) legal challenges. The author contends that the current system, which includes a 'low-risk' category for countries like the United States and EU Member States, is sufficient and that removing due diligence requirements for 'no-risk' countries would make it 'effectively impossible' to prevent deforestation-linked goods from entering the EU market. The document emphasizes that the EUDR, set to take effect in December 2026, must maintain its core requirements for seven key commodities—timber, cattle, cocoa, coffee, oil palm, rubber, and soy—to meet the EU's goal of halting forest loss by 2030.

• A 'no-risk' category would create a 'laundering loophole' where high-risk commodities are shipped to a no-risk third country, processed, and then exported to the EU without origin verification. This includes intentional laundering, such as cattle moving across borders in Central America and Mexico, and unintentional laundering due to complex supply chains in countries like Turkey, Vietnam, and China.
• Implementing a no-risk category based on country classifications rather than objective sector-wide criteria could violate the WTO's principle of non-discrimination, specifically the General Agreement on Tariffs and Trade (GATT), potentially leading to legal challenges that undermine the EU's credibility in environmental governance.
• The EUDR already provides reduced compliance requirements for countries classified as 'low risk', such as the United States and EU Member States, which removes the need for additional risk assessments and mitigation steps.
• The EUDR targets seven key commodities and their derivatives: timber, cattle, cocoa, coffee, oil palm, rubber, and soy. The regulation is scheduled to take effect in December 2026.

APA

World Resources Institute (2026). Why a 'No-Risk' Category Would Weaken EU's Landmark Anti-Deforestation Law (EUDR). https://www.wri.org/insights/no-risk-category-would-weaken-eudr

Chicago

World Resources Institute. Why a 'No-Risk' Category Would Weaken EU's Landmark Anti-Deforestation Law (EUDR). 2026. https://www.wri.org/insights/no-risk-category-would-weaken-eudr.

Wikipedia

{{cite press release |author=World Resources Institute |title=Why a 'No-Risk' Category Would Weaken EU's Landmark Anti-Deforestation Law (EUDR) |date=7 April 2026 |url=https://www.wri.org/insights/no-risk-category-would-weaken-eudr |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{worldresourcesinstitute2026why, author = {{World Resources Institute}}, title = {{Why a 'No-Risk' Category Would Weaken EU's Landmark Anti-Deforestation Law (EUDR)}}, publisher = {World Resources Institute}, year = {2026}, month = apr, url = {https://www.wri.org/insights/no-risk-category-would-weaken-eudr}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }