EU delays implementation of deforestation-free products regulation

TALLINN - The European Union has adopted amendments to the Regulation on Deforestation-Free Products (EUDR), postponing its application by one year. Additionally, changes were approved that place a greater emphasis on the initial placing on the market to reduce the administrative burden for subsequent operators in the supply chain.

The start of the regulation's implementation is delayed by 12 months to give member states and businesses sufficient time to prepare. The obligations will apply to large and medium-sized enterprises from December 30, 2026, while for micro and small enterprises with fewer than 250 employees and a turnover of up to 50 million euros, the regulation will come into force on June 30, 2027.

According to Kristi Parro, head of the forest department at the Ministry of Climate, the postponement and the proposed simplifications are much needed for the Estonian forestry sector and other relevant parties. "Estonia supported delaying the implementation because many technical details still needed clarification and there were technical issues with the European Commission's information system. The proposal to shift the focus of due diligence to the initial placing on the market is also a step in the right direction, helping to avoid excessive bureaucracy in later stages of the supply chain where there is no longer a link to deforestation," Parro noted.

The delay in the regulation's implementation gives market operators time to implement due diligence systems and adapt to the new rules. The amendment also introduced a new category of 'micro and small primary producers,' for whom a simplified declaration requirement has been established. A one-time submission of a simplified declaration will be sufficient for them, and the provided declaration reference code will ensure proper traceability throughout the supply chain.

The purpose of the deforestation-free products regulation is to ensure that only those commodities covered by its scope (cattle, cocoa, coffee, oil palm, soy, wood) and products made from them are placed on or exported from the European Union market if their production has not occurred on deforested or degraded forest land. They must also comply with the laws of the country of production, and due diligence must have been exercised.