EU Proposes 12-Month EUDR Extension Amid Industry and Environmental Divide

The European Commission (EC) has proposed a 12-month extension for the phasing-in of the European Union Deforestation Regulation (EUDR) following concerns from stakeholders, governments, and global trade partners about potential trade chaos and uneven readiness for the regulation's implementation. The extension aims to provide more time for businesses and countries to adapt to the new rules, ensuring smoother compliance without compromising the regulation's ultimate goal of combatting deforestation.

Figure 1. Annual rate of forest expansion and deforestation

Proposed Changes

If the extension is approved, large companies must comply by December 30, 2025, and micro and small enterprises by June 30, 2026. While the tools for implementation are reportedly ready, the EC believes the additional year will better address feedback from key global markets and give stakeholders adequate time to meet the regulation's requirements. The core objective of combating deforestation and its main provisions remain unchanged despite the delay.

In addition to proposing the delay, the EC also unveiled the principles for its EUDR country benchmarking methodology, which will classify countries as low, standard, or high risk. This classification system is designed to simplify the due diligence processes for operators and help authorities monitor and enforce compliance. Most countries will likely be categorized as "low risk," enabling greater focus on regions with more pressing deforestation challenges.

To facilitate global adherence to the regulation, the EC has developed a strategic framework for international cooperation on EUDR. The framework outlines five priority areas, such as smallholder support, and highlights eight principles: continued dialogue and cooperation with third countries concerned, support for actions, a human rights-centered approach, favouring the engagement, capitalising on the lessons learnt and established good practices, transparency and access to information, synergies with other EU policy initiatives, and coordination with relevant development partners. It also provides tools for implementation, such as dialogue, financing, and intensified talks with the most affected countries. This framework aims to expedite the finalization of the country benchmarking system, which is expected to be adopted via an implementing act by June 30, 2025.

Industry and NGO Reactions

The postponement has elicited mixed reactions from various industry bodies and non-governmental organizations (NGOs). Several organizations, including Copa-Cogeca –the union of the two big agricultural umbrella organizations, the Committee of Professional Agricultural Organisations (COPA) and the General Confederation of Agricultural Cooperatives (COGECA) – the European Feed Manufacturers' Federation (FEFAC), and the European Vegetable Oil and Proteinmeal Industry (FEDIOL) have long expressed concerns about the practicality of the EUDR's implementation. These bodies welcome the proposed delay, emphasizing that the regulation imposes significant administrative burdens and operational challenges on businesses. They urge the EU Parliament and Council to approve the extension, emphasizing the need to resolve these practical challenges to prevent supply chain disruptions.

Additionally, FEDIOL noted that companies have already made substantial investments to prepare for EUDR compliance by the original date. The group highlighted that merely delaying the regulation is insufficient unless accompanied by clear solutions that address existing compliance concerns, particularly those involving the complex information systems required under EUDR.

On the other hand, environmental NGOs such as Mighty Earth and Global Witness have voiced sharp criticism of the postponement. Mighty Earth suggests that the decision reflects environmental negligence, arguing that the delay will accelerate the destruction of tropical forests, harming wildlife and local communities, and hindering progress toward critical climate and biodiversity goals. Global Witness shared similar concerns, noting that the delay could undermine the EU's Green Deal agenda. The NGO pointed out that the EU had previously assured the World Trade Organization (WTO) that the regulation would proceed as planned and expressed concerns that a delay would undermine legal predictability for businesses that have already begun adapting their operations to meet the regulation's demands.

Next Steps and Conclusion

The proposed delay now rests in the hands of the EU Parliament and Council, which must decide by the end of the year whether to approve the one-year extension. While the extension is intended to help address challenges in implementing the regulation, the EC remains firm on its objectives and is working to provide additional guidance to ensure the eventual smooth rollout of the EUDR. The 12-month extension of the EUDR’s implementation reflects the EU’s efforts to balance environmental objectives with economic realities, giving companies more time to adjust while engaging in broader international cooperation. However, the delay has sparked debate, with some industry bodies seeing it as a necessary reprieve, while environmental advocates warn that it could weaken momentum on critical environmental issues, such as deforestation and climate change.