From Uncertainty to Perspective:
What the EUDR Delay Really Means
This week’s announcement of a potential postponement to the EU Deforestation Regulation (EUDR) created understandable turbulence in the market. Today, with a clearer view, the outlook does not seem as uncertain as it did at first.
The proposal to delay the EUDR is far from final. It will take two to three months before it is reviewed and voted on across the required institutions. During this process it can still be amended or rejected. This timeline is critical for companies to understand. Stopping compliance efforts now would put all previous investments at risk, leave operators exposed to fines, and suppliers vulnerable to losing market access if the proposal does not pass.
We are also starting to see large corporations signaling their opposition to any extension. These companies have already invested heavily to be ready and they have clear commitments to their consumers. The EUDR was not created simply by political choice. It reflects Europe’s climate commitments and a strong demand from consumers to know that the products they buy are not linked to deforestation. For that reason, companies that are already prepared will resist any delay. Even if enforcement is pushed back, they will continue to require deforestation-free supply chains and compliance with national rules. Suppliers will still need solutions in place.
We expect more public statements from major companies in the coming weeks. In the past many of them have already voiced opposition to a delay and reaffirmed their commitments to EUDR compliance, as you can see below:
Nestlé and Ferrero plead for implementation of EU Deforestation Regulation as planned
EU: Companies and national alliances urge EU policymakers to uphold Anti-deforestation law’s ambition & timeline — Business & Human Rights Resource Centre — See full Joint Statement — 1751877165580_1.pdf
News — Michelin and the European regulation on deforestation-free products
Carrefour Statement — Publicação | LinkedIn
The debate will now play out between opposing interests. Our current assessment is that the chance of an actual delay being approved is no higher than fifty percent. More meetings are needed, but so far none of our clients have expressed any willingness to take the risk of being unprepared. The consequences of non-compliance remain too serious.
At Dimitra we are continuing to support our clients and partners in preparing for the EUDR. The news of a possible delay has not changed that commitment. On the contrary, it highlights the importance of pressing ahead with onboarding, traceability and sustainability efforts so that our clients are ready for any outcome.
