EUDR Delay Formally Agreed by the European Parliament and Council

The European Parliament and Council have formally confirmed their agreement to the Commission’s proposal to delay the implementation of the Deforestation-free Products Regulation (EUDR) by 12 months, meaning that the EUDR will apply from 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises. The agreed text was published in the Official Journal of the EU on 23 December, which means that the delay can enter into force before the original application date of 30 December 2024.

This will conclude a process that started back in October – when the Commission proposed the delay – and provides important certainty for entities preparing to comply with the EUDR. Getting here has not been plain sailing, however, as the Parliament suggested making a number of amendments to the EUDR, which risked opening up the substance of the law to negotiation once more. In this blog, we set what has now been agreed, and suggest some practical tips for preparing to comply with the EUDR. 

What has been agreed?

Crucially, the delay does not affect the substance of the EUDR, as the Parliament’s suggested amendments were not taken forward during recent trilogue negotiations. The most significant amendment suggested by the Parliament was to introduce a new ‘no risk’ category for the assessment of countries’ deforestation risk, which would greatly reduce the associated due diligence and documentation requirements for in-scope entities. 

However, the Commission has agreed to provide further clarifications on the legislation and “explore additional simplifications”, by publishing updated EUDR guidance and FAQs, and to continue responding to feedback from stakeholders and Member States. It also committed to ensuring that the information system, which allows operators, traders and their authorised representatives to register and submit due diligence statements, and the proposal for the risk classification, which will classify countries or parts of countries according to the level of deforestation risk, are made available as soon as possible but not later than six months before the EUDR enters into force (i.e., 30 June 2025). The information system was launched earlier this month.

In addition, the text of the EUDR states that the Commission is to carry out a general review of the EUDR by 30 June 2028. As part of this, the Commission is expected to “analyse additional measures to simplify and reduce administrative burden”, a nod to the Commission’s current focus on competitiveness.

What’s next?

The approval of the delay gives businesses additional time to prepare and additional certainty over the final form of the legislation. It also provides an opportunity to: 

1. Take stock and assess EUDR readiness: Complying with the EUDR is already proving itself to be a significant compliance challenge for in-scope companies as they start to prepare for it coming into force. To the extent that any workstreams have been paused to account for the potential delay of the legislation, these may now need to be reopened and appropriate plans for implementation drawn up. 
2. Engage with suppliers as soon as possible: Businesses will need to work closely with suppliers to set up the systems and data processes necessary to comply with the EUDR. Suppliers may be at varying stages of readiness and early engagement will be crucial to bridging any gaps to full compliance in the remaining time before the legislation starts to apply. Today’s news may be a convenient trigger to kick-start (or restart) discussions with suppliers.
3. Consider compliance solutions: There is a growing eco-system of third-party service providers that may be able to assist businesses with their EUDR compliance efforts. These will not be appropriate in all cases but may be able to provide additional support. 
4. Take into account legal uncertainty: The EUDR is a new regime with an ambitious scope. Questions over legal interpretation, enforcement and implementation remain and may not be addressed by further guidance that is released by the EU. We have seen several clients carefully considering any areas of uncertainty and seeking additional advice as part of their general compliance efforts. 

Updated on 19 December to reflect the Council's agreement to the delay, and on 23 December to reflect the publication of the agreed text in the Official Journal of the EU