EU moves forward with deforestation rules for large firms despite IT delays 

EU – The European Union (EU) has reaffirmed that its deforestation regulation for large and medium-sized companies will take effect at the end of 2025, rejecting calls for a further delay despite ongoing IT system issues. 

Last month, the European Commission had proposed another postponement of the EU Deforestation Regulation (EUDR), citing difficulties with the IT system developed to register goods and facilitate compliance. The system reportedly struggled to manage the volume of transactions as the December deadline approached. 

Initially scheduled for enforcement in December 2024, the EUDR was already delayed by one year. The latest proposal, announced on 22 October, keeps the 30 December 2025 deadline for large and medium enterprises but introduces a six-month grace period to allow for a gradual implementation. 

According to the Commission, this transitional period will ensure smoother checks and enforcement while strengthening the IT system’s capacity. For micro and small enterprises, the regulation is still set to apply from December 2026. 

The Commission said its proposal will now be presented to the European Parliament and the Council of the European Union for formal adoption. It urged both institutions to approve the amendment swiftly by the end of 2025. 

Since the system’s launch in December 2024, the Commission said it has been working closely with stakeholders to refine its performance. New projections indicated that the number of expected operations was significantly higher than initially estimated, prompting a reassessment of system capacity. 

To address feedback from businesses, the Commission proposed simplified procedures for downstream operators and traders, including retailers and large manufacturers marketing EUDR products.  

Under the revised system, only one due diligence statement will be required at the point of EU entry for the entire supply chain, shifting reporting responsibility to the first operator placing products on the market. 

For small-scale producers in low-risk countries, covering nearly all EU farmers and foresters, similar simplifications will apply to ease compliance requirements. 

However, the adjustments have drawn criticism from environmental groups, notably the World Wide Fund for Nature (WWF). In a statement, WWF described the move as “a shameful surrender to political pressure,” arguing that it weakens the regulation’s integrity. 

Anke Schulmeister-Oldenhove, Senior Forest Policy Officer at WWF’s European office, said: “Proposing a partial delay and further changes is a deliberate choice, not an absolute necessity. The Commission appears to be using IT issues as an excuse to water down the regulation.” 

WWF urged the EU to uphold the original EUDR objectives and called on companies to implement due diligence systems that ensure fully traceable, transparent, and deforestation-free supply chains. 

The EUDR, announced in 2021, seeks to prevent products linked to deforestation from entering the EU market, covering commodities such as cocoa, coffee, soy, and palm oil. 

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