Preferred by Nature to Businesses: “Stay the Course” Despite EUDR Postponement
After unprecedented pushback from an array of lawmakers, business groups within the EU and some countries where relevant commodities are produced, it may come as little surprise that the European Commission (EC) has proposed to postpone the enforcement date of the EU Deforestation Regulation (EUDR) by one year.
While the news may be welcomed by some and will disappoint others, Preferred by Nature urges that private enterprises with obligations under the regulation, and all those impacted by this regulation globally, maintain their focus on ensuring deforestation-free commodities and products within their supply chains.
Many enterprises have already begun efforts to align with the EUDR. Stakeholders globally are now dedicating significant resources to improving their operations, collecting better data and addressing deforestation risks within their commodity supply chains.
“These efforts made to date, to meet the requirements of the regulation, are not in vain. The extra twelve months will pass by quickly, so take advantage of the added time to better prepare and to implement the most robust solutions possible, in time for the regulation’s new deadlines.”
David Hadley
Regulatory Impact Programme Director, Preferred by Nature
According to the European Commission, the proposed amendments - which will require approval by the Council as well as a vote in the European Parliament - will “allow Member States, exporting partner countries, operators and traders to be better prepared and for the latter, to fully establish the necessary due diligence systems covering all relevant commodities and products.”
If the proposal is passed, the regulation will apply to most businesses from 30 December 2025, and from 30 June 2026 for some small/microenterprises.
Unease around implementation timeframes
Preferred by Nature has been supportive of the European Commission’s efforts to address its contribution to deforestation. While no single action is sufficient to address a challenge as complex as agriculturally-driven deforestation, the adoption of the ambitious regulation in 2023 has served as a powerful piece in the jigsaw of measures that are necessary to address deforestation, biodiversity loss and climate change.
However, in some cases, the protracted timespan for updated Frequently Asked Questions and guidance to be made available, has frustrated companies’ ability to prepare. Additionally, there have also been strains caused by concerns that EUDR support systems, such as the Information System for uploading Due Diligence Statements, and Country Benchmarking, would not be ready within timeframes necessary to incorporate these into companies’ due diligence processes by end 2024.
“We understand that these requirements may have added unexpected pressure on some stakeholders, but there are plenty of examples showing that aligning with the requirements of EUDR is far from impossible. A short postponement may ensure that more stakeholders within and outside the EU will be ready, as of the enforcement date,” said David Hadley.
He advises that enterprises avoid redirecting or suspending the resources already budgeted or dedicated to preparing for the EUDR. Instead, they should continue efforts to engage with suppliers and supply chains to develop a deeper understanding of how they operate.
“The urgency to tackle the climate crisis – and the ongoing destruction of our global forest resource which drives it – is only growing over time. Actions such as the elimination of deforestation from commodity supply chains now represent an essential minimum for businesses globally, if we are to meet the climate change ambitions set out by the Paris agreement,” said David Hadley.
How to spend an extra year preparing for the EUDR
Maintain the budget and resources already dedicated to the adaptation of your operations, in preparation for the EUDR.
Continue efforts to engage with your suppliers and supply chain actors, to develop a deeper understanding of how they operate and the challenges they face.
Employ additional time to gather better data that speaks to likely deforestation, forest-degradation or legally non-compliant production risks in supply chains.
Explore how technology solutions may help your due diligence efforts and provide for improved implementation and efficiencies.
- Use the extra time to explore risk mitigation options which the original timeframes may not allow. Test potential new approaches or pilot innovative solutions with potentially longer-term impacts.
>> Read the EC Proposal to postpone enforcement of the EU Deforestation Regulation here.
>> Read the full text of the EU Deforestation Regulation here.
For comment, please contact:
David Hadley, Regulatory Impact Programme Director
E: dhadley@preferredbynature.org
P: +34 682 88 31 37
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