EU member states have agreed to delay the implementation of the EU Deforestation Regulation (EUDR) by another year and introduce additional simplifications, moves that significantly weaken one of the bloc’s central environmental laws just weeks before it was set to take effect [1][2].

The EUDR aims to ensure that commodities such as palm oil, beef, coffee, soy, cocoa, rubber and timber entering or leaving the EU market are not linked to deforestation or forest degradation. Originally proposed in 2021, the regulation requires companies to conduct due diligence, including tracing products back to the plot of land where they were produced and proving they were not linked to deforestation after 2020 [1].

Second Consecutive Delay and Expanded Flexibilities

Under the EU Council’s new position, implementation would be delayed until the end of 2026 for large operators and mid-2027 for small and micro businesses, marking a second one-year postponement [1][2]. The Council also endorsed allowing companies to retain only limited due diligence data and, in some cases, rely on postal codes rather than precise geolocation for traceability, significantly reducing compliance requirements [1].

A new review clause mandates the European Commission to examine the regulation again in April 2026, potentially paving the way for even more cuts before the delayed enforcement date, raising concerns among environmental groups [1][2].

Criticism and Growing Concerns About EU Backtracking

The decision comes as the EU faces scrutiny for softening several environmental policies in 2025, including its 2040 climate target. NGOs argue that the latest move risks “gutting” what was once hailed as a landmark law to tackle global deforestation [2]. Some major companies also warned earlier in the week that further delays would punish early movers that had already invested in compliance systems [1].

Germany, which pushed for deeper simplification, argued that the law must be made “as unbureaucratic as possible,” while Belgium, the Netherlands and Spain opposed the weakening package [2].

The European Parliament will vote on its position next week before trilogue negotiations begin, as policymakers race to finalize changes before the current December 30 implementation date [1].

References

[1] ESG Today – EU Countries Vote to Delay Supply Chain Deforestation Law for Another Year
https://www.esgtoday.com/eu-countries-vote-to-delay-supply-chain-deforestation-law-for-another-year/

[2] Politico Europe – EU countries seek to weaken deforestation law as green backpedaling continues
https://www.politico.eu/article/eu-countries-agree-on-one-year-delay-to-deforestation-law/