The EU deforestation law, a landmark policy aimed at preventing deforestation-linked products from entering or leaving EU markets, has hit another delay. The European Commission has proposed pushing implementation back by another year, citing concerns that its IT infrastructure is not yet equipped to handle the vast volume of data the regulation will require. The postponement represents a growing challenge not only for EU policymakers but also for businesses seeking to align their corporate sustainability strategies with emerging due diligence requirements.
About the EU deforestation law
First introduced in 2021, the EU deforestation law was designed to make companies accountable for ensuring that commodities such as palm oil, beef, coffee, cocoa, soy, and timber (and products derived from them) are not linked to deforestation or forest degradation. To comply, companies must trace goods back to the specific plot of land where they were produced and prove that production did not contribute to deforestation after 2020.
This due diligence framework signifies a major shift in global trade and supply chain governance, setting new expectations for transparency across industries. While initially scheduled to take effect for large companies by the end of 2024 (and for SMEs in mid-2026), the latest delay means implementation may now slip to late 2025.
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Why the delay matters
In a letter to the European Parliament’s environment committee, EU Commissioner Jessika Roswall explained that the IT system designed to manage EUDR data is facing “a substantial upward reassessment” of its expected load. Without upgrades, the system risks “unacceptable slowdowns or long-lasting disruptions,” potentially hindering both compliance and trade flows.
For businesses, the delay offers temporary breathing room, but also prolongs uncertainty. Many companies have already begun investing in traceability tools, supplier engagement, and satellite monitoring technologies to meet EUDR requirements. For them, the pause could slow momentum and create uneven progress across the market.
Moreover, the delay raises broader concerns about policy credibility. With deforestation continuing at alarming rates globally, each setback risks undermining confidence in the EU’s environmental leadership and delaying much-needed corporate accountability in global supply chains.
Final thoughts – What’s next for businesses?
Despite the delay, the direction of travel remains clear: greater scrutiny, transparency, and environmental responsibility across supply chains. Companies that use the extra time to strengthen traceability, assess risk exposure, and build supplier capability will be best positioned when the law finally comes into effect.
The EU deforestation law remains one of the most ambitious examples of policy-driven sustainability to date. Its success will depend not only on robust systems, but on businesses embedding sustainability into their operations – not just to comply, but to lead.
At the Institute of Sustainability Studies (ISS), we help organisations and professionals build the skills to design, implement, and report credible strategies that withstand scrutiny. Explore our expert-led sustainability courses online to prepare your teams for upcoming regulatory shifts.
Dedicated to harnessing the power of storytelling to raise awareness, demystify, and drive behavioural change, Bronagh works as the Communications & Content Manager at the Institute of Sustainability Studies. Alongside her work with ISS, Bronagh contributes articles to several news media publications on sustainability and mental health.
