In a significant development for global sustainability and corporate compliance, the European Commission has announced that it is considering a further one-year delay to the entry into application of the EU Regulation on Deforestation-Free Products (EUDR), meaning it would take effect on 30 December 2026. This move, while potentially offering a welcome reprieve for businesses navigating complex supply chains, also introduces fresh layers of uncertainty, including for UK-based firms trading with the EU.
The EUDR, a cornerstone of the EU’s biodiversity strategy, targets deforestation linked to high-risk commodities such as soy, palm oil, beef, coffee, cocoa, wood, and rubber. Under the regulation, companies must demonstrate that their products are deforestation-free, legally produced, and backed by robust due diligence statements.
Originally slated for enforcement on 31 December 2024, enforcement was first postponed to 30 December 2025 to allow for better implementation planning. This included the rollout of critical infrastructure such as the EUDR Information System, benchmarking tools, and comprehensive guidance materials.
The latest proposed delay – which will require approval by EU member states and the European parliament – stems from concerns over the readiness of the central IT system, which is essential for processing due diligence data at scale. Without this extension, the Commission feared that system overload could disrupt trade and undermine the regulation’s effectiveness.
Importantly, this postponement does not alter the substance or scope of the regulation: companies will still be required to ensure that covered commodities are deforestation-free and compliant with local laws. Enforcement, including penalties of up to 4% of annual EU turnover, will commence once the regulation is in force.
For businesses, this delay is a strategic window and businesses are advised to use the extra time to prepare.
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