The EU Deforestation Regulation (EUDR) is set to be delayed again due to what the European Commission said was a lack of capacity in its IT systems to deal with the new law.
The aim of the EUDR, according to the European Commission, is to ensure that goods in the EU market do not contribute to deforestation and forest degradation, both within the EU and globally.
The regulation was prompted by concerns in recent years that EU trade deals may contribute to deforestation by importing increased amounts of products whose production required the felling of large areas of forests.
These concerns were most pronounced in relation to the EU-Mercosur Trade Agreement, which generated concerns that EU imports of agri-food and animal feed would lead to destruction of the Amazon Rainforest.
However, the provisions of the EUDR would also apply to products produced within the EU.
The new regulation means that companies will only be allowed to sell products in the EU if the supplier provides a “due diligence” statement confirming that the product does not come from deforested land or has led to forest degradation.
The regulation was set to come into effect at the end of 2024. However, this was deferred until the end of 2025, and mid-2026 for smaller businesses.
Now, the European Commission has confirmed that it will seek a further delay of one year.
European Commission spokesperson for trade Olof Gill told journalists in Brussels: "The EU Deforestation Regulation is a key piece of legislation to help combat global deforestation and ensuring sustainable value chains.
"The commission has worked very hard over the past year with stakeholders in the EU and beyond to make sure that the EUDR can be applied as of next year in a simple and workable way," Gill added.
"While our simplification efforts have been substantial, we have concluded that we cannot meet the original deadline without disruption to our business and supply chains.
"In particular we have serious capacity concerns regarding the IT system given the projected load," Gill explained.
He added: "The commission will therefore seek a postponement of the EUDR by one year in order to avoid uncertainty for authorities and to avoid operation difficulties for companies."
The commission spokesperson said that this will allow the commission to "remedy the identified risks", including the design of the IT system in terms of the necessary capacity.
"Legislation needs to work. Legislation needs to serve its intended purpose.
"If the technical elements that are required of legislation to serve its intended purpose are not fully there, then it's logical and appropriate to delay it," Gill said.
While confirming that the commission will seek a delay of one year, the spokesperson did not specify the exact dates that the law will now apply from.