This edition of our newsletter is arriving a little later than usual. We wanted to wait for the webinar organized by the Delegation of the European Union to Colombia on March 31st before sharing insights. The webinar, titled Colombia está lista para el EUDR? with the subtitle Así va la preparación para la entrada en vigor del Reglamento cero deforestación EUDR 1115/2023, provided essential updates on Colombia’s preparedness for the EU Deforestation Regulation (EUDR).
And the news is good: Based on our field activities, we at ALKADO have observed that Colombia is well-prepared, a fact that was reaffirmed during the webinar.
Understanding the EUDR
The EUDR aims to prevent products linked to deforestation from entering the EU market. The regulation is part of the European Green Deal and other sustainability strategies. Given that agricultural expansion is responsible for 90% of deforestation worldwide, and the EU is a major consumer of commodities linked to deforestation, this regulation is designed to minimize the EU’s contribution to global forest loss and degradation.
To comply, products must meet three key requirements:
- They must be deforestation-free as of the cutoff date, December 31, 2020.
- They must comply with the legal framework of the producing country.
- They must be covered by a due diligence statement issued by operators—companies or individuals introducing these products into the EU market or exporting them from the EU.
The affected commodities include cattle, soy, wood, coffee, rubber, cocoa, palm oil, and their derivatives, such as furniture, leather, chocolate.
Key Implementation Dates
- June 29, 2023 – Regulation entered into force.
- December 30, 2025 – Obligation applies to operators and traders.
- June 30, 2026 – Obligation applies to micro and small enterprises.
Colombia’s Strong Position in the EUDR Context
Colombia is well-prepared compared to other countries and holds a strong position in its trade relationship with the EU. The European Commission’s presentation, using data from the International Trade Centre (ITC), showed the significance of Colombia’s exports to the EU:
- 49.57% of exported palm oil is destined for Europe.
- 26.5% of exported coffee goes to Europe.
- 18.4% of exported cocoa is sent to Europe.
This underscores the importance of EUDR compliance for Colombian producers and exporters, as a significant portion of these commodities is linked to the European market.
Challenges and Opportunities
While compliance presents challenges, such as ensuring product traceability, it also creates opportunities. The growing global demand for sustainable products positions Colombia as a competitive and environmentally responsible supplier.
Efforts to meet the EUDR requirements have been ongoing for some time, involving multiple stakeholders, including producers, facilitators, importers, and institutions like Fedecacao, Fedepalma, ANDI, and DIAN, as well as international cooperation organizations, among others.
Sector-Specific Adaptation
Different sectors are progressing at different paces in their adaptation to the EUDR requirements. The palm oil sector is the most advanced in Colombia in terms of geolocation, deforestation analysis, and legal compliance. The coffee sector follows closely behind. The cocoa sector, while making significant progress, still has room for further adaptation. During our field visits, we at ALKADO observed firsthand that coffee production is further along in terms of compliance compared to cocoa.
Conclusion
Colombia is in a strong position to adapt to the EUDR and maintain its vital trade relationship with the EU. While challenges exist, the opportunities far outweigh them, allowing Colombian producers and exporters to enhance their sustainability practices and remain competitive in a market that increasingly values environmentally responsible products.
