EU Commission proposes EUDR implementation delay
It has also released additional guidance to support stakeholders, member states, and international trading partners in preparing for the regulation's implementation.
In a statement, the Commission explained that the extension aims to address feedback from key global markets regarding their readiness. It also noted uneven preparedness within Europe. If approved, the law would apply from December 30, 2025, for large companies, and June 30, 2026, for micro- and small enterprises.
While the tools for implementation are ready, the additional time would allow for a smoother transition, says the EU executive.
The delay, however, does not alter the law's objectives of combating deforestation or its core provisions, it stressed.
Additional guidance
The additional guidance published today covers topics such as the information system functionalities, penalties, definitions like ‘forest degradation’ and traceability obligations. The documents are aimed at ensuring a uniform interpretation of the law.
The Commission has updated information for the general public as well.
Country benchmarking and international coordination
Also released today are the principles of the methodology it will use for the EUDR country benchmarking exercise. This will classify countries as low, standard, or high risk, simplifying due diligence for operators and aiding competent authorities in monitoring and enforcing compliance.
Under this methodology, most countries will be classified as 'low risk', allowing collective efforts to focus on regions where deforestation challenges are more severe.
To ensure smooth global implementation, the Commission adds that it has also developed a strategic framework for international cooperation on the regulation, which highlights five priority areas, including support for smallholders, and sets out eight key principles, such as a human rights-centered approach. It also provides tools for implementation, including dialogue and financing.
The lack of crucial compliance guidance on EUDR since December 2023 created an information vacuum for companies and countries that wanted to crack on with their preparedness. It meant that trade groups such as FEFAC, FEDIOL, COCERAL and cocoa industry organizations were forced to develop their own guidelines for their members.
IT system
The information system, where businesses will register their due diligence statements, is set to begin accepting registrations in early November, with full operation starting in December. Operators and traders will be able to register and submit their due diligence statements before the law takes effect, according to the Commission.
Since piloting the system with 100 companies in January, the officials say they have introduced several additional measures:
- Establishing a single point of contact for IT support
- Developing an interface for machine-to-machine connections, eliminating the need for manual data input, with over 250 private stakeholders working on this feature
- Offering support for testing stakeholders' geolocation files and providing feedback
- Creating videos and multilingual user instructions for the system
- Hosting training sessions, with the first held in Brussels on September 25, and online sessions starting in late October.
The legislative process
The EUDR emerged from an extensive process involving scientific and economic research, stakeholder consultations, and political negotiations. After the initial draft was released by the Commission in December 2020, it took EU institutions two more years to finalize the text, culminating in the December 2022 'Trialogue' between the Commission, the EU Parliament, and the EU Council.
Officially enacted in June 2023, the regulation mandates that products derived from beef, soy, cocoa, coffee, palm oil, natural rubber, or wood must be 'deforestation-free' and legally produced to be sold in the EU market.
The law requires companies to geolocate the source of commodities in their products and conduct due diligence to verify that these products were not grown on land deforested after December 2020 or in protected areas like national parks. The regulation was set to be enforced from December 30, 2024.
Next steps
The Commission is to intensify its talks with the countries most concerned; such actions are intended to feed into the "speedy finalisation" of the country benchmarking system through a proposed implementing act by June 30, 2025.
It is up to the EU Parliament and the Council now to adopt the proposal for an extended implementation period by the end of the year.
Reaction
Copa-Cogeca, FEFAC, and other organizations have expressed concerns for many months about the regulation's practical applicability and the significant administrative burden it imposes. They are now urging the EU Parliament and Council to address the challenges raised by member states, third countries, and relevant stakeholders, and to approve the Commission's proposal for a one-year postponement.
"The focus must now shift to addressing the practical challenges associated with the EUDR’s implementation to prevent uncertainties and avoid supply chain disruptions."
FEDIOL also responded to today's announcement. It highlighted the significant resources traders and importers have invested in preparing for EUDR implementation and in proposing practical solutions to facilitate the enforcement of the complex rules. The delay will likely result in financial losses for these businesses, it noted.
The trade group added that simply delaying the EUDR won't necessarily make its future implementation more secure. It intends to carefully review the Commission's guidance document and additional FAQs, hoping these will adequately address the compliance concerns and operational issues with the information system that have been raised over the past year.
Environmental non-profit, Mighty Earth, commented on the development as well. Its senior policy director, Julian Oram, criticized the postponement, likening it to throwing away a fire extinguisher while a building is ablaze. He argued that this decision represents environmental negligence, accelerating the destruction of tropical forests, threatening both wildlife and people, and hindering progress toward climate and biodiversity goals.
Global Witness’ analysis suggested the proposed one-year delay could seriously jeopardize the EU’s Green Deal agenda. It recalled that, in late September, the EU confirmed to the World Trade Organisation (WTO) that the EUDR would proceed according to the agreed schedule and any delay “would not achieve our goal to provide legal predictability for operators.”
Companies covered by the law have already had 18 months to prepare, and many of them have already adapted their operations to be EUDR compliant, remarked the NGO.
The Rainforest Alliance is also frustrated with this postponement proposal. "We see this as a blatant contradiction with all EU commitments to halt global biodiversity loss and climate change. It also sets a dangerous precedent leading to potential reopening of all the crucial regulations and directives adopted as part of the EU Green Deal. This delay also penalizes those companies and producers that have already made significant investments to comply with the EUDR."
