The European Parliament has voted in favour of delaying and revisiting the European Union’s flagship anti-deforestation law, signaling a significant shift in the bloc’s approach to regulating global supply chains. With 402 votes in support and 250 against, lawmakers agreed to postpone the start date of the EU Deforestation Regulation (EUDR) and requested an early impact review that could lead to additional simplifications, despite the law not yet being in force. The outcome sets the stage for formal talks with the EU Council, which is already aligned with the Parliament’s stance, making additional delays highly likely.

A Major Pause on One of the EU’s Most Ambitious Environmental Rules

The EUDR was originally conceived as a transformative regulation meant to prevent products linked to forest loss from entering or leaving EU markets. It covered a wide range of commodities, from palm oil and coffee to soy, beef, rubber, and timber. Companies would have been required to map supply chains down to individual land plots and demonstrate that production did not contribute to deforestation after 2020. Although the law had already been pushed from 2024 to 2025, the new vote extends the timeline again. Large companies would now move into compliance near the end of 2026, while smaller firms would have until mid-2027. These extensions reflect concerns from businesses and policymakers that the technical systems needed to handle vast amounts of parcel-level location data are not yet ready..The European Commission had previously weighed a second delay due to capacity limitations of the new EUDR digital platform. Although the Commission ultimately proposed keeping the original entry date with a short enforcement grace period, the Parliament and Council have now chosen a more extensive postponement.

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Regulators Attempt to Ease Compliance Burdens Across the Supply Chain

Beyond extending the timeline, lawmakers also backed significant changes to how responsibility is assigned in the EUDR. Instead of requiring due diligence statements at multiple points along the supply chain, the updated version concentrates reporting requirements on the entities that first place relevant goods on the EU market. Downstream actors, including retailers and manufacturers, would no longer need to file repeated declarations in the EUDR system. Micro and small primary operators would face an even lighter touch. Instead of ongoing reporting cycles, they would submit a one-time declaration, and only if necessary. In cases where the required information already exists in the IT system, the burden on smaller firms would effectively be eliminated. These changes are intended to streamline workflows and address concerns that the regulation would create an unmanageable administrative load. However, the new vote goes further still. Both the Parliament and Council are calling for a fresh evaluation of the law by April 2026, well before a single company is required to comply. This mid-course review could lead to additional revisions, reinforcing uncertainty for businesses that have already invested heavily in traceability tools.

Political Divisions Exposed Inside the Parliament

The decision to delay and reopen the EUDR triggered sharp criticism from political groups that had championed stronger environmental protections. Members of the Socialists and Democrats (S&D) and other centre-left blocs warned that the move weakens one of the EU’s most visible contributions to global forest conservation. Delara Burkhardt, the Parliament’s lead negotiator on the file for the S&D Group, described the agreement as troubling and argued that the EPP, the Parliament’s largest political group, aligned itself with far-right parties to push through amendments that undermine the law’s purpose. She noted that a pre-implementation review introduces deep uncertainty and discourages firms that have already taken proactive steps toward compliance. According to Burkhardt, many large companies have publicly expressed readiness to comply with the regulation and have urged the EU to maintain a stable policy environment. Delays and potential further changes, she said, risk penalizing those early movers while rewarding companies that had resisted preparing for the law.

Industry Reaction Reveals Concerns About Regulatory Instability

Several multinational companies across agriculture, food, retail, and manufacturing sectors have warned that another postponement could generate uneven playing fields. Firms that invested in geolocation tools, satellite-based monitoring, and third-party verification systems now face the possibility of sunk costs and shifting expectations. These companies argue that uncertainty weakens both compliance efforts and investor confidence. Many had viewed the EUDR as a catalyst to modernize supply chains and a signal that the EU would maintain strict sustainability rules even in the face of political pushback. A delay until 2026 or beyond means the EU’s global partners may also adapt their own strategies. Producer countries that began adjusting export protocols and certification systems may now need to recalibrate timelines, creating further ripple effects in global agricultural markets.

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What Comes Next for the EUDR?

The next stage is trilogue negotiations between the Parliament, Council, and Commission. Since the Parliament and Council positions are closely aligned, the core elements of the delay and simplification package are expected to pass without major friction. The April 2026 review will be key. Depending on the findings, the regulation could undergo further revision, which may range from additional simplification to broader restructuring of compliance obligations. Until then, companies face a landscape filled with unanswered questions. The ambition to eliminate deforestation-linked products from EU markets remains unchanged, but the timeline and design of the regulatory pathway are now more fluid than ever. For sustainability leaders, investors, and policymakers, the coming months will determine whether the EUDR ultimately advances clarity and environmental protection or becomes another case study in regulatory drift.

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