Businesses warn of added costs and loss of trust if EUDR is delayed again

A group of businesses and organisations operating in forest-dependent sectors have warned EU legislators that delaying the Deforestation Regulation (EUDR) by another year would result in added costs and loss of trust in Europe’s regulatory process.

The deforestation law was initially meant to be implemented in December 2024, but was delayed by 12 months towards the end of last year following pressure by many of the countries producing forest commodities. Now, the European Commission is suggesting that EUDR implementation should be delayed another year — until the end of 2026 – due to IT challenges.

But companies including Nestlé, Olam Agri, Ferrero, Mars Wrigley, Céréalia and Tony’s Chocolonely wrote in a letter to EU Commissioner Jessika Roswall last week that they are on track to comply with EUDR by December 31, 2025 after considerable investments.

“These efforts have been made in good faith that the European legislative framework and timeline were reliable,” they added.

The group “deeply regrets” that a technical IT issue risks jeopardising the EUDR’s core objectives and entry into force, especially so close to the implementation deadline for companies, and warns: “This approach would introduce considerable uncertainty and stakeholder disengagement and result in additional compliance expenses for businesses, contrary to the intended simplification.”

Deforestation regulation ‘important for the EU’s long-term competitiveness’

In their view, “clear, predictable and comprehensive” regulations protecting the environment and human rights are important for the EU’s long-term competitiveness. In forest supply chains specifically, conducting supplier due diligence and implementing traceability systems, as required by the EUDR, “are fundamental aspects of responsible raw material sourcing and good business practice, ensuring effective risk mitigation and management of negative environmental impacts, including deforestation,” they add.

Instead of further delaying the law, the corporate group – backed by nonprofit organisations such as Voice Cocoa Network and the Rainforest Alliance –  suggests a “pragmatic” approach for the EU to overcome IT challenges.

Using force majeure to deal with IT issues

First, if companies are unable to use the IT system or encounter specific technical challenges, “these situations should be recognised as force majeure for compliance by companies and enforcement by competent authorities”. This would mean that operators may be excused from some of the legal consequences that would result from non-compliance until the issue is resolved – but would still be required to try to comply.

To support this, the group suggests a Commission Notice addressed to member states, national competent authorities and operators to clarify these force majeure circumstances and establish a defined grace period of not more than six months, during which controls will be reviewed and fines suspended. 

Finally, they believe the Commission should establish an ongoing technical committee to oversee implementation and facilitate technical discussions between authorities and operators. 

“We urge the European Commission to provide clarity on its intended next steps as soon as possible to avoid additional uncertainty. Companies need to know what to prepare for, and by when. We stand ready to continue the discussions on practical solutions that are fit for purpose and do not penalise the long-standing investments of our companies and the higher standards of European businesses,” the letter concludes.