The EU has granted companies an additional year to comply with new rules aimed at preventing deforestation.
A provisional agreement reached between the EU Parliament and the Council extends the phasing-in period outlined in the EU Deforestation Regulation (EUDR).
Once formally adopted, the law will apply to large companies starting December 30, 2025, and to micro- and small enterprises by June 30, 2026.
The delay, proposed by the EU Commission, aims to ensure the law’s effective implementation while preserving its integrity.
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According to the Commission, the extension responds to feedback from trading partners, including the US, member states, and businesses, who cited insufficient preparedness and a lack of EU guidance as key challenges.
To support the transition, the Commission pledged to ease the administrative burden on companies, streamline compliance requirements, and finalize the country benchmarking system by June 2025.
Such efforts are part of a broader support package introduced on October 2, 2024, which also includes enhanced international cooperation and additional guidance documents.
Read more: What impact will EUDR delay have on feed and livestock companies?
Reactions from stakeholders
Christine Schneider, member of the centre-right European People’s Party (EPP) and the EU Parliament’s rapporteur, praised the postponement, saying:
“We promised and we have delivered. This postponement means businesses, foresters, farmers, and authorities will have an additional year to prepare. We ensured the Commission will complete the online platform and risk categorization in six months, ensuring more predictability across the supply chain.”
However, she expressed disappointment that some provisions were not directly enshrined in the law and called for close monitoring of the Commission’s efforts to reduce bureaucracy and provide incentives for low-risk countries to improve forest conservation.
Terry Reintke, a Greens MEP, reacting to the delay, said the EPP was unsuccessful in its attempt to undermine the directive.
Julian Oram, policy director at Mighty Earth, highlighted the environmental risks of postponement, saying:
“The decision to delay enforcement leaves forests to fall for another year, with deadly impacts for people, climate, and nature. Companies, which have spent billions to comply, have been badly let down, while EU markets remain exposed to products tainted by deforestation and human rights abuses.”
What commodities and products are affected?
The EUDR entered into force on June 30, 2023, requiring companies dealing with high-risk commodities, including palm oil, cattle, soy, coffee, cocoa, timber, and rubber, to exercise due diligence in their supply chains.
Derived products such as beef, furniture, and chocolate are also covered.
Once applied, these rules aim to prevent the import or export of products linked to deforestation, aligning with the EU’s commitment to protect global forests and combat climate change.
Next steps
For the postponement to take effect, the informal agreement between the EU Parliament and Council must be formally endorsed by both institutions and published in the EU Official Journal before year’s end.
It will be voted on during Parliament’s plenary session from December 16-19, 2024.
