The European Commission has proposed to postpone the implementation of the EU Deforestation Regulation (EUDR) by a further year, marking the second time it has been delayed. The reason for doing so, according to Environment Commissioner Jessika Roswall, centres on concerns that the IT systems intended to manage the enormous data flows from due diligence reporting will not be ready to cope with the demand.
This development raises significant questions about the balance between ambition, feasibility and what it means for businesses, forest-rich producing nations and forest protection globally.
What The Delay Means
More Time, Not a Cancellation
The proposal is not a change to the core elements of the regulation, but a shift in timing. The EU is seeking to buy extra time to ensure that the systems supporting EUDR, particularly IT infrastructure and traceability mechanisms, can handle the obligations without crashing under the load. However, the delay is subject to agreement by the European Parliament and EU member states.
Uncertainty for Businesses
Many companies and supply chain actors have already mobilised, investing in traceability systems, mapping suppliers and auditing practices. A delay could create uneven competitive advantages: those who anticipated the original timeline may feel penalised, while late adopters may gain a looser window. Furthermore, even if the timeline shifts, the expectation is that due diligence and compliance obligations will still apply when the law becomes active.
Risk to Credibility and Momentum
Environmental groups and forest advocates warn that repeated delays risk eroding the credibility of the legislation and may dampen political commitment. The regulation is a central plank in the EU’s efforts to ensure that commodity imports do not drive deforestation. By postponing it again, the EU may send the wrong signal, that implementation challenges outweigh the urgency of forest protection.
Producing Countries React
Producer nations and trade-dependent sectors have welcomed the extension, noting the immense burden of compliance, especially for smallholders and regions with weaker infrastructure. The delay offers breathing room for origin countries to ramp up national traceability systems, training and regulatory alignment.
What Stakeholders Should Do
Stay Prepared, Don’t Pause
A delay is not permission to stop preparing. Companies should continue refining due diligence processes, investing in traceability, engaging suppliers and stress-testing data systems. The delay gives more time to correct gaps, not an excuse to defer action.
Advocate for Technical Support and Simplicity
Policymakers should use the extra time to not only fix IT capability, but simplify compliance for small and medium operators, especially in low-capacity regions. Overly burdensome requirements could backfire by excluding small producers or creating loopholes.
Engage in the Final Decision
The formal proposal must pass through the European Parliament and Council. Stakeholders – industry, NGOs, producer governments – should actively monitor debates and advocate for a robust but practical adoption timeline.
Communicate Transparently
Businesses should be open with investors, customers and suppliers about how the evolving timeline affects plans. Clarity and consistency in messaging will help maintain trust during this uncertain period.
Looking Ahead
The proposed delay to the EUDR highlights a tension: the ambition to eliminate deforestation from EU supply chains, and the logistical reality of operating at a significant scale. While postponement may ease short-term risks, it cannot become an everlasting back-door to weakening the regulation’s environmental aims.
For those committed to deforestation-free supply chains, the extended window should be viewed not as a reprieve but as a final opportunity to build resilience, get systems right, prepare for a future where compliance is inevitable and the cost of non-compliance is too high to ignore.
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