The European Parliament voted for a further one-year delay to the implementation of the EU Deforestation Regulation (EUDR), after the EU Commission cited concerns that existing IT systems are not yet capable of managing the significant data volumes the regulation will require. This was already the second major postponement, following a one-year delay agreed by the European Council and Parliament in 2024, which had pushed application of the rules to the end of this year for large companies and to June 2026 for micro- and small enterprises.

Originally proposed on 21 November 2021, the EUDR is designed to prevent products linked to deforestation or forest degradation from being placed on or exported from the EU market. It imposes strict compliance obligations on companies dealing in key commodities such as palm oil, beef, timber, coffee, cocoa, rubber, and soy, as well as derived products including leather, chocolate, tires, and furniture.

Under the EUDR, companies must carry out mandatory due diligence, including tracing products back to the specific plot of land where they were produced. Businesses must demonstrate that the land was not subject to deforestation after 2020 and that production complied with all relevant laws in the country of origin. The proposed delay reflects implementation and infrastructure challenges rather than a change in the regulation’s substantive environmental objectives.

Because of the delay, it is now anticipated that the EUDR will enter into force on 30 December 2026 for large corporations and on 30 June 2027 for small businesses with fewer than 50 employees and earning less than EUR 10 million in annual sales of covered products.