Don’t let the EUDR extension fool you: Why waiting could cost your business

The European Commission has?proposed adding an extra 12 months to the phasing-in period for the EU Deforestation Regulation (EUDR), with compliance deadlines pushed to?December 2025?for large companies and?June 2026?for SMEs.

While this proposal still awaits approval by the European Parliament and Council, many businesses may view it as a delay—despite not being officially labeled as such, likely for legal reasons.?

But don’t be fooled by the extra time. This is not the time to sit back.

The smartest players will use this window to strengthen their due diligence processes and take the lead on sustainability, rather than scrambling at the last minute.?

Here’s why proactive preparation now is key to long-term success.

Using the Additional Time Wisely

It's crucial that we utilise this extended period effectively. The urgency to address deforestation remains, and the extra time should not lead to complacency. Instead, it offers a valuable opportunity to ensure thorough preparation for compliance with the EUDR's requirements.

Focusing on EUDR Compliance

The additional phasing-in time allows us to:

• Collect and Share Relevant Information:?Gather all necessary legal documents and data to demonstrate compliance. This includes verifying every step of the supply chain to ensure products meet the deforestation-free criteria.
• Enhance Traceability:?Implement systems to make supply chains transparent and traceable, fulfilling the EUDR's stringent obligations.
• Support Smallholder Farmers:?Ensure that smallholder farmers and their organisations maintain access to the European market by helping them meet compliance requirements.

Avoiding Future Setbacks

We must prevent a scenario where, in a year's time, we face renewed pressure against the EUDR's enforcement. It's unlikely that further extensions will be granted, and enforcement is expected to be strict once it begins. Proactive preparation is essential. If you haven't started preparing, now is the time. From our experience at AgUnity working in the field, we know that achieving compliance requires significant effort and cannot be accomplished overnight.

Understanding the Phasing-In Period

The European Commission's proposal means that while the EUDR is in force, there will be an additional 12 months before enforcement actions like official checks of due diligence statements and fines for non-compliance begin. This period is designed to:

• Allow Stakeholders to Prepare:?Businesses have more time to align their operations with the EUDR's requirements.
• Provide Guidance and Support:?Authorities can offer explanations, additional information, and warnings to help operators achieve compliance before penalties are applied.

New Guidance and Resources Available

The European Commission has published additional guidance documents and updated the EUDR website to assist stakeholders:

• Detailed Guidance:?Clarifications on definitions, traceability obligations, and compliance requirements are now available.
• Updated website:?The?EU Deforestation website?has been updated with a lot of relevant information.
• Updated FAQs:?The latest?Frequently Asked Questions?provide answers to many questions.
• Information System Ready:?The IT system for submitting due diligence statements will soon be open for registration and testing. Companies can familiarise themselves with the process ahead of enforcement.

I will share a more detailed review of the guidance documents and updated FAQs soon, but I encourage everyone to make use of these resources promptly.

Moving Forward

Our main goal at?AgUnity?remains to prevent deforestation while ensuring that smallholder farmers are not disadvantaged. By focusing on collecting and sharing the necessary legal information, documents, and data, we can work towards full compliance with the EUDR's requirements.

Let's use this extra time to:

• Invest in Preparation:?Begin or continue the work needed to meet the EUDR's obligations, including data collection and adjusting processes.
• Collaborate Effectively:?Work closely with all stakeholders in the supply chain to ensure everyone is informed and prepared.
• Leverage Technology:?Implement technological solutions to aid in data collection, traceability, and compliance efforts.

Final Thoughts

The additional phasing-in time is an opportunity to ensure we are fully prepared for the EUDR's enforcement. The tasks ahead are substantial, but with dedicated effort, we can meet them successfully.?

It's crucial that we do not delay our preparations, as enforcement is expected to be rigorous once it commences and you are not ready.

If you haven't started preparing yet, now is the time to begin. From our experience, we know that compliance requires significant work, and early action is key.

What are your thoughts? How can we best utilise this additional phasing-in time to prepare for the EUDR? Let's continue this important conversation and work towards a sustainable future together.

#sustainability #EUDR #deforestation #supplychains #globaltrade #EUgreenDeal #climateaction