Europe’s anti-deforestation law is delayed again. Here’s what to expect in 2026
The European Union’s landmark anti-deforestation law, originally passed in 2023 and designed to ensure that key goods sold in Europe are free from forest destruction, has once again been pushed back, against the wishes of dozens of major companies.
Under a new deal struck between EU institutions in early December, the regulation will take effect Dec. 30, 2026 with smaller companies granted an extra six months’ grace period.
The agreement, according to the EU Council, aims to “simplify the implementation” and “reduce administrative burdens” while preserving the law’s environmental ambition.
But for companies that have spent years preparing for the regulation, the news has prompted frustration. For many, it marks yet another weakening of what was once hailed as the most ambitious anti-deforestation law ever.
“Companies should act now to comprehensively map their supply chains, engage directly with and support their producers, invest in traceability systems and go beyond legal minimums,” said Vanessa Richardson, senior forest campaigner at the Environmental Investigation Agency. “Businesses that delay or wait for political uncertainty to clear risk falling behind — both ethically and commercially.”
How we got here
Uncertainty remains over what form the final law will take, but here’s what you need to know ahead of 2026.
The EU Deforestation Regulation (EUDR) seeks to ensure that commodities such as cattle, cocoa, coffee, palm oil, rubber, soy and timber — along with goods derived from them — can only be sold in the EU if they are proven to be deforestation-free and compliant with local laws.
Originally set to apply to large and medium-sized operators starting in December 2024, the law was delayed to December 2025 to give businesses time to adapt. Now, under the new deal, the main provisions will not apply until December 2026, with micro and small enterprises (those with fewer than 250 employees or an annual turnover under $58 million) following in June 2027.
The revision reflects mounting concerns about the readiness of companies and national authorities — and about whether the EU’s new computer system, which will underpin the law’s traceability requirements, can handle the data load anticipated when companies began submitting reports.
Simplification or dilution?
Under the new compromise, the obligation to submit due-diligence statements will fall solely on operators placing products on the market for the first time. Downstream traders will only have to retain reference numbers of those statements — not file their own.
Micro and small operators that grow, harvest or produce commodities covered by the law from low-risk countries will be allowed to file a one-time simplified declaration instead of a full accounting. The EU has already drawn up its country classification list, with the U.S. and Canada in the low-risk category.
Brussels argues these measures will make compliance simpler for businesses without undermining ambition. Others disagree.
“Many companies are frustrated and increasingly vocal about the constant changes,” Richardson said. “They’ve invested millions in systems to trace their supply chains and ensure compliance — and now face uncertainty just as they were ready to move ahead.”
Prior to the decision, a coalition of 30 companies and NGOs, including Nestlé, Danone, Mars Wrigley and the Rainforest Alliance, called for no further delays and warned that constant revisions penalize those who acted early. A clearly defined grace period would have allowed firms to begin implementation while giving authorities time to finalize the computer system, the group argued.
A Nestlé spokesperson told Trellis it had prepared “intensively” for EUDR compliance by the end of 2025, with 93.5 percent of its key ingredients already assessed as deforestation-free.
What to expect
“Frontrunners’ investments should be secured by ensuring that the implementation starts under a well-defined grace period serving as a learning phase,” the spokesperson said. “The Council position is a step in that direction but needs to be further streamlined to avoid confusion and continued uncertainty.”
Retailers also express unease. “Important obligations such as the recording, verification and transmission of reference numbers remain unclear,” said Christian Schneider, senior manager of strategic communications at the European supermarket chain ALDI Nord, adding that the lack of legal certainty has made it difficult to finalize workflows.
“We’ve had to proceed based on assumptions,” he said, despite the company’s support for the EUDR’s goals.
Even as the ink dries, another potential shake-up looms. Under the deal, the European Commission must deliver a “simplification review” by April 30, 2026, assessing the law’s administrative burden — particularly on smaller operators — and suggesting ways to ease it.
Crucially, the review “should, where appropriate, be accompanied by a legislative proposal.” In other words, the rules could change yet again before they even take effect.
Graphic credit: Tom Howarth
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