The EU Parliament agreed to postpone the EU Deforestation Regulation (EUDR) by one year. Originally set to apply its provisions at the end of 2024, the law imposes restrictions on products sold in the EU to ensure they do not come from deforested land. This allows companies more time to prepare and fully comply with the law.  

EUDR implementation: Timeline

The deforestation regulation entered into force on 29 June 2023, and its provisions were set to be applied on 30 December 2024. However, in response to EU member states’ concerns, the European Commission proposed a 12-month delay for the implementation of the EUDR in October 2024 to give companies more time to adjust their operations to the new regulations.  

On 14 November 2024, the Parliament approved the postponement and other amendments with 371 votes to 240 and 30 abstentions. As a result, large operators and traders would have to comply with the regulation from 30 December 2025 and micro- and small enterprises from 30 June 2026. This would enable operators worldwide to implement the rules efficiently without compromising the EUDR’s objectives.  

Along with other changes proposed by the political groups, Parliament also approved the addition of a new category of countries that pose “no risk” on deforestation to the current three categories of “low,” “standard” and “high” risk. Countries with stable or increasing forest area development—those categorised as “no risk”—will be subject to much less stringent requirements because the risk of deforestation is minimal or nonexistent. The Commission must finalise a country benchmarking system by 30 June 2025.  

How to prepare for the EUDR

In order to combat climate change and biodiversity loss, the EU deforestation regulation restricts deforestation associated with the consumption of cattle, cocoa, coffee, palm oil, soy, wood, rubber, charcoal and printed paper within the EU.  

Companies must assess whether any of their products or commodities are subject to the EUDR and work with their suppliers and traders to determine whether or not the components of their products are linked to deforested areas. Updating current supply chain due diligence policies would also help companies obtain more data and identify further actions they need to take to fulfill the EUDR due diligence statement.  

Stay compliant with Bolder Group

Despite the delay in implementing the EU deforestation regulation, it is critical that companies start gathering the necessary data and information to ensure the assessment of all relevant supply chains and that traders, operators and importers perform due diligence measures to meet EU market standards.  

Given the complexity of the requirements and process, our Bolder compliance experts are available to help you seamlessly navigate every step of the way. From information collection to risk assessment and reporting, our comprehensive solutions ensure you stay compliant with the evolving regulatory landscape.  

We are also committed to assisting companies in promoting inclusive and sustainable growth and navigating regulatory requirements through our bespoke ESG compliance services.   

If you require more information about the EUDR or want to discuss your ESG strategy, please contact our team.  

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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