The European Union has postponed the rollout of its deforestation-free supply chain law by one year, giving businesses extra time to comply with one of the world’s most ambitious environmental regulations. Originally set to take effect in December 2024 for large companies, the law will now begin in 2025 due to delays in the development of its digital infrastructure.

The regulation, known as the EU Deforestation Regulation (EUDR), requires companies trading in high-risk commodities such as coffee, cocoa, beef, soy, palm oil, timber, and rubber to prove their products are not linked to deforestation after 2020. This includes submitting detailed geolocation data tracing goods back to the exact plots of land where they were produced.

The delay stems from concerns over the EU’s centralized IT system, which is not yet capable of processing the vast amount of traceability data the regulation demands. Officials have warned that the current platform could slow down or even crash under operational load, making compliance nearly impossible for many businesses.

The decision has drawn mixed reactions. Environmental groups fear the delay will result in continued forest loss and weaken the EU’s environmental credibility. Meanwhile, several EU member states and international trade partners have voiced concerns over the logistical and financial burden of compliance, especially for smallholder farmers and exporters in countries like Brazil and Indonesia.

Despite the delay, businesses are advised to keep preparing. The extra time offers a chance to strengthen traceability systems, renegotiate supplier agreements, and align internal processes with the regulation’s requirements.

This development underscores a critical challenge in global sustainability policy: legislation is moving faster than the infrastructure needed to support it. The EU’s success in delivering a robust system by the new deadline will be essential not just for enforcement, but for maintaining its leadership in sustainable trade and supply chain accountability.

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https://esgnews.com/eu-pushes-back-supply-chain-deforestation-rules-by-one-year/