The German auto industry has voiced strong support for the EU’s fight against deforestation, but with sharp criticism of the current regulation’s practicality. The rules, designed to prevent deforestation-linked materials like soy, rubber, and wood from entering the European market, have sparked concerns from industry leaders about their operational impact.
Hildegard Müller, President of the German Association of the Automotive Industry (VDA), emphasized, “We support the goal of combating deforestation worldwide and thus contributing to the preservation of biodiversity and the containment of climate change. The automotive industry acknowledges its responsibility to make an active contribution here.”
The industry’s call for clarity centers on fears of excessive bureaucracy and vague requirements that could stifle business without advancing environmental goals. Müller stressed that the regulation needs to bring ‘real improvements’ without unfairly placing the weight of global responsibility on the European automotive industry. The VDA has published a detailed position paper outlining specific issues that must be addressed to ensure competitiveness and practicality.
Underdeveloped EU System Poses Hurdle
One of the most pressing concerns involves the EU’s information system, essential for ensuring compliance with the regulation. Müller highlighted the technical immaturity of this system, which is set to launch just weeks before companies are expected to meet their due diligence obligations. She pointed out that many businesses may not have access to the required data until late 2024, which complicates efforts to meet the new standards.
Crucial tools, such as the risk assessment framework known as country benchmarking, remain unavailable. Without these resources, Müller warns, companies could face additional burdens without significantly contributing to forest protection efforts.
Unresolved Customs and Regulatory Issues
Further challenges lie within the customs process, with major confusion surrounding the distinction between natural and synthetic rubber—a critical issue for businesses. Müller noted that this lack of clarity could lead to unnecessary complications in customs clearance. Additionally, rules governing the use of wood for packaging materials are still not adequately defined.
The VDA is urging the European Commission to quickly amend the regulation, offering practical solutions that avoid double regulation and unnecessary complexity. “We call on the European Commission to adapt the regulation as quickly as possible so that companies are able to fulfil their due diligence obligations in a legally secure manner and without unnecessary bureaucracy,” Müller remarked, pressing for streamlined processes that still meet environmental objectives.
Should the necessary data and regulatory structures not be put in place swiftly, Müller called for an extension of the implementation deadlines, stressing that businesses need sufficient time to prepare. “It must be ensured that companies have sufficient time to prepare for the new requirements,” she concluded.
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