Lawmakers within the European Parliament and Council introduced Thursday night that they’ve reached a provisional settlement to simplify and delay the EU Deforestation Regulation (EUDR), a brand new legislation geared toward requiring firms to make sure that merchandise imported to or exported from EU markets not contribute to deforestation and forest degradation globally.
As a part of the settlement, the co-legislators additionally tasked the European Fee with reviewing affect of the brand new legislation early subsequent 12 months for potential additional simplification, even earlier than it should come into power.
The EUDR was launched by the EU Fee in November 2021, and adopted in 2023, with the goal of successfully banning deforestation-linked merchandise on the EU market, and establishing robust compliance necessities for firms offering or using key commodities and merchandise reminiscent of palm oil, beef, timber, espresso, cocoa, rubber and soy, along with a few of their derived merchandise, reminiscent of leather-based, chocolate, tires, or furnishings.
The brand new regulation set guidelines for firms that place related merchandise on the EU market, or export them, introducing necessary due diligence guidelines, together with a requirement to hint the merchandise again to the plot of land the place it was produced, to show that the merchandise had been produced on land that was not topic to deforestation after 2020, and are compliant with all related relevant legal guidelines in power within the nation of manufacturing.
The brand new deforestation regulation had initially been set to come back into power on the finish of 2024, however was delayed by a 12 months on the request of the Fee to present firms extra time to arrange for its compliance obligations. In September 2025, the Fee thought of proposing a second one-year delay resulting from considerations concerning the power of present IT methods to deal with the info load created by the brand new regulation. In October, nonetheless, the Fee’s formal proposal retained plans to have the EUDR enter into power on the finish of this 12 months, however launched a six-month enforcement grace interval, and gave small enterprises till the tip of 2026 to start complying with the regulation.
The Fee’s new proposal additionally launched a collection of simplification measures into the EUDR regulation, shifting the main focus of reporting obligations to the operators that really place the related EUDR merchandise available on the market, whereas downstream operators reminiscent of retailers or producers would not be obliged to submit due diligence statements, requiring just one submission, as a substitute of a number of ones, within the EUDR IT system throughout the availability chain. For micro and small major operators, the Fee’s new proposal decreased their obligation to submit solely a easy, one-off declaration within the EUDR IT system, whereas if the knowledge is already obtainable, the operators wouldn’t need to take any motion within the IT System themselves, changing the earlier want for normal submissions of due diligence statements.
In adopting their negotiating positions concerning the Fee’s proposals, nonetheless, each the EU Parliament and Council selected to push out the implementation of the brand new regulation by a 12 months, with each legislative our bodies agreeing to have the EUDR come into power on the finish of 2026 for giant firms, and in mid-2027 for smaller operators.
In line with the EU Council, the brand new delay to the EUDR implementation was determined “following considerations from member states and stakeholders concerning the readiness of firms and administrations, in addition to about technical points associated to the brand new info system.” Notably, a number of main firms within the sectors focused by the EUDR, have warned in opposition to additional delays and modifications to the legislation which they mentioned would introduce new uncertainties for firms, and unfairly punish companies which had already invested in methods to adjust to the brand new laws.
The brand new settlement additionally introduces further simplifications to the EUDR, inserting the duty to submit due diligence statements solely on the operators who first place the related merchandise available on the market, and having solely the primary downstream operator within the provide chain be answerable for accumulating and retaining the reference variety of the preliminary due diligence assertion. The up to date guidelines additionally ease compliance obligations for small and micro operators, requiring them to submit solely a easy, one-off declaration within the EUDR IT system. The settlement additionally removes some printed merchandise from the scope of the regulation, reminiscent of books, newspapers, and printed photos from the scope of the regulation, resulting from their restricted deforestation threat.
Along with the delay and modifications to the regulation, the brand new settlement additionally calls on the Fee to hold out a brand new simplification assessment of the EUDR by the tip of April 2026 – even earlier than the newly proposed implementation dates – to guage the executive burden and affect of the regulation, which may open the EUDR to even additional modifications.
The brand new provisional settlement will now be required to be formally adopted by the EU Parliament and Council earlier than getting into into power, with the goal of the up to date regulation being finalized earlier than the tip of the 12 months.
Following the settlement, Parliament’s rapporteur Christine Schneider mentioned:
“The guts of the EU deforestation regulation stays intact. We’re defending forests that face an actual threat of deforestation, whereas avoiding pointless obligations in areas the place no such threat exists. This settlement takes the considerations of farmers, foresters and companies severely and ensures that the regulation might be applied in a sensible and workable manner.”
