EU Commission proposes another deforestation regulation delay amid environmental backlash

The European Commission has come under fire for proposing that it will once again delay the enforcement of its EU Deforestation Regulation (EUDR) — this time until the end of 2026. The regulation, which must still be approved by the European Parliament and EU member states, will be postponed for a second time, with the Commission citing “serious IT capacity concerns” that could prevent the compliance system operating at scale.

In a letter published yesterday, EU Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall, said: “Despite efforts to address the issues in time for the EUDR’s entry into application, it is not possible to guarantee that the IT system can handle the expected load. In view of this, the Commission is considering a postponement of the entry into application of the EUDR, currently foreseen for December 30, 2025, for one year…”

The EUDR, which would require businesses to provide a “due diligence” statement supported by geolocation data to show their products have not come from land deforested after 2020, was initially intended to come into force in December 2024. The regulation impacts various supply chains, including cocoa, soybeans, coffee, palm oil, and beef.

The Commission argues that launching the EUDR with an inadequate IT system could cause supply chain disruptions and uncertainty, but environmental groups have criticized the delay, with some even suggesting that the IT issues are disingenuous.

“It is probably no coincidence that this move comes right as the Commission pursues an unprecedented deregulation agenda, throwing the EUDR under the bus. This is unacceptable and a massive embarrassment for President Von der Leyen and her Commission. If this technical issue is real, this shows not only incompetence, but also a clear lack of political will to invest sufficiently in a timely implementation of the EUDR,” says Anke Schulmeister-Oldenhove, forest policy manager at the WWF European Policy Office.

Meanwhile, environmental law charity ClientEarth suggests that it is “ludicrous” that the administration of the world’s biggest single market would not be able to handle the data in the current era of rapid technological evolution.

“The Commission is making a fool of itself by using its own inadequate IT system as an excuse to delay the world’s most important forest law for a second time in 12 months,” says ClientEarth lawyer Michael Rice.

“The Commission, as well as all the member states, have had more than enough time to prepare to implement this law — after all, they wrote and negotiated it. There has already been a year’s delay, and businesses, member states, and third country governments have invested huge amounts in reaching compliance on time. We’ve heard that small family farmers in remote parts of Cameroon and Indonesia can meet the law’s requirements, and yet the European Commission can’t?”EU faces criticism over new delay to landmark deforestation law.

Welcome relief or exacerbated issues?

Some businesses have welcomed the delay as it would allow more time for preparation, risk assessments, and stress-testing. In July, Oreo and Cadbury owner Mondelez formally requested a 12-month delay to the EUDR implementation, citing volatile cocoa prices, infrastructure gaps, and pressures on smallholder farmers.

The Indonesian Palm Oil Association (GAPKI) says its stakeholders are supportive of the regulation’s goal of reducing global deforestation but concerned by possible exclusion from EU markets.

“GAPKI has consistently asked that the sustainable development needs of smallholders — whether in palm oil, rubber, coffee, timber, or cocoa — be recognized as part of the regulation. GAPKI has also consistently asked that local approaches to sustainability certification be incorporated into the regulation,” the Association says.

However, NGO Mighty Earth stresses that further delays would “massively disadvantage” the companies and countries that have prepared for the EUDR’s expected December implementation.

“It also ignores the will of EU citizens who don’t want to buy products tied to deforestation. This proposal — at a time when we are experiencing a climate, nature, and deforestation crisis and after the record-breaking fires in Europe this summer — should be firmly rejected.”

The European Parliament and Council are expected to evaluate the Commission’s proposal before the end of the year.Businesses welcome extra time as environmental groups slam postponement.