VCI urges EU to scrap EUDR supply-chain reporting requirement

Frankfurt, Germany – German chemicals industry association VCI has called on the EU to simplify supply-chain requirements for the EU Deforestation Regulation (EUDR) as they create significant administrative burdens.

In a 14 Sept position paper setting out 10 priorities for reducing bureaucracy, VCI urged the German government to push for simplification of legislation “at source” at EU level.

On the EUDR in particular, the association called for the requirement to collect and pass EUDR reference numbers along the supply chain to be “completely abolished”.

“The environmental policy objectives of the EUDR are already achieved through the full due-diligence obligation of the first placer on the market,” VCI said.

The subsequent collection and transmission of reference numbers “creates no additional forest protection, but causes considerable administrative effort, particularly in complex and mixed supply chains,” it added.

Instead, VCI proposed that reference numbers should be generated once, when products are first placed on the EU market, and centrally checked by authorities through the EU's TRACES system.

This, it said, could “significantly reduce bureaucracy, IT complexity and legal uncertainty without impairing the effectiveness of the regulation.”

VCI also called for implementation of simplifications to the Carbon Border Adjustment Mechanism (CBAM) announced under the Clean Industrial Deal, but did not elaborate further.

While these “do not solve the fundamental problem of CBAM”, the association siad, the measures would at least reduce the administrative burden on companies using the mechanism.

VCI went on to add that administrative costs should be given appropriate consideration in decisions over any future expansion of CBAM's scope.

On REACH, meanwhile, VCI said that following the decision not to revise the regulation, the European Commission should work with industry to make implementation of the existing framework “more practical and efficient”.

The association called for measures to strengthen the innovation, competitiveness and resilience of Europe's chemicals and pharmaceutical industries while reducing companies' administrative costs.

It also urged the EU to ensure a “level playing field” both within the bloc and against competitors from third countries.