EUDR postponement: Make the most of the extra year
On 17 and 18 December 2024, both the European Parliament and Council adopted the updated proposal to extend the enforcement date of the EU Deforestation Regulation (EUDR) by one year. This delay, which shifts the compliance deadline to 30 December 2025, gives companies some breathing room. But how can businesses strategically use this extra time?
The EUDR, which has been EU law since 29 June 2023, will now be enforced from 30 December 2025, with most micro and small businesses given until 30 June 2026 to comply. Yesterday’s vote adopted the agreement reached through the Trilogue process earlier in December, following a proposal to amend the regulation by the European Commission in October 2024.
Other elements of the agreement which were adopted, include a commitment by the Commission to publish a comprehensive list of low- and high-risk countries by 30 June 2025. The agreement rejected the amendments voted on by the European Parliament in November to introduce a “no risk” category for country benchmarking.
Meanwhile, the EU Timber Regulation (EUTR) will be repealed as of 30 December 2025 (one year later than planned). Timber products will transition to EUDR compliance from 30 December 2025; however, EUTR provisions will remain for products harvested prior to 30 June 2023, until 31 December 2028.
The amending regulation is expected to take effect before the end of 2024, following its publication in the Official Journal of the EU. The inclusion of language revoking a review period by EU Member States ensures this timeframe is met.
Press on with the preparations
The clock is ticking and, even with the extra year, companies should not view this as an opportunity to delay essential steps. The fundamental goal of the EUDR remains unchanged – creating deforestation-free supply chains.
Stakeholders are encouraged to continue preparing for compliance. Speculating on further postponements due to potential delays in the Country Benchmarks or Information System could be a costly miscalculation.
For businesses, this extra year should be seen as a critical opportunity to refine their processes, improve data quality and strengthen due diligence systems.
Use the extra year effectively
For businesses just starting
If your organisation has yet to begin preparing for the EUDR, now is the time to:
- Use tools like the Preferred by Nature EUDR Scoping Tool to understand your regulatory responsibilities. Share it with your suppliers, to help them understand their obligations too.
- Craft a detailed action plan, ensuring sufficient resources are allocated to meet compliance goals.
- Consider Preferred by Nature’s Due Diligence Toolkit as a template for your due diligence system, or seek support from our Sustainability Advisory team to help you prepare in time.
For those already preparing
For organisations already working towards compliance, this extended timeline offers a chance to:
- Ensure you have budgeted the necessary resources for 2025 to support ongoing EUDR preparations.
- Finalise the implementation of your due diligence system with a few months to spare. This will provide time to align your operations with the Information System, testing of procedures, and making improvements. Preferred by Nature’s Due Diligence Toolkit can support this effort (launching soon on 21 January 2025) or consider leveraging our Sustainability Advisory Services.
- Explore digital solutions to streamline due diligence processes and improve efficiency.
Enhancing supply chain insights and mitigation strategies
Companies can use the additional time to gain a better understanding of their supply chains. Engage more deeply with suppliers and partners to get a clearer picture of the challenges they face in relation to deforestation, forest degradation and legal non-compliance. This engagement will help assess potential risks and improve your ability to mitigate them effectively.
Gathering high-quality data will be essential for making informed decisions. Focus on strengthening systems used to collect, store, process and pass-on geolocation or other relevant data, ensuring that you have credible sources and methodologies at your disposal.
The additional year offers a chance to refine your risk assessment processes to ensure they are robust enough for long-term sustainability. The Country Benchmarks published by the Commission will dictate the level of risk associated with sourcing from different countries. Keep a close eye on these benchmarks, as they will inform whether you can utilise Simplified Due Diligence procedures* for low-risk countries.
The extended timeline provides an opportunity to explore risk mitigation strategies in greater depth. Choose robust solutions that are scalable, recognised and cost-effective – particularly in the long term. Pilot innovative solutions that may have been out of reach in the original timeframe. Revisit options including credible certification schemes, many of which have worked very hard to align with the EUDR, via the addition of regulatory modules, support services or other tools. For example, the Preferred by Nature Certification, based on our Sustainability Framework aligned with the EUDR requirements, could help streamline your alignment efforts.
Seize the opportunity
The EUDR postponement is more than just a delay – it is an opportunity. By proactively using this extended period, companies can position themselves for compliance, ensuring their supply chains are deforestation-free and comply with the laws of the production country.
*See Article 13 of the regulation
For more information on the EUDR, visit our dedicated webpage.
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