A group of major companies* including Nestlé, Mars Wrigley and Ferrero, among several others, have issued a letter urging European lawmakers to avoid further delaying the EU Deforestation Regulation (EUDR), a new law aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, warning that pushing the implementation of the law out further would negatively impact forests and climate change, and be unfair to businesses and their supply chain partners who have already made investments to comply with the new regulation.
The letter, addressed to EU Commissioner Jessika Roswall, follows news of a proposed 1-year delay to the EUDR, communicated in September by Roswall, over concerns that IT systems currently in place will not be sufficient to handle the data load created by the new regulation. The proposal would mark the second year-long delay for the EUDR, which was initially set to become applicable from the end of December 2024, but could now be pushed out to the end of 2026.
The companies, which operate in across the cocoa, dairy, rubber, wood and agri-food sectors, expressed support for the EUDR, noting that the regulation’s due diligence and traceability systems requirements “are fundamental aspects of responsible raw material sourcing and good business practice, ensuring effective risk mitigation and management of negative environmental impacts, including deforestation.”
Roswall’s letter last month outlined concerns with implementing the EUDR with the IT systems currently in place, noting that it “will very likely lead to the system slowing down to unacceptable levels or even to repeated and long-lasting disruptions,” which, in addition to not meeting the EUDR’s objectives, would also “potentially affect trade flows in the areas covered by the legislation.”
In the new letter, however, the companies, warned that a further delay to the supply chain deforestation law “puts at risk the preservation of forests worldwide, will accelerate climate change impacts, and undermines trust in Europe’s regulatory commitments.”
The letter also noted that the companies and value chain partners, including smallholder farmers, have been actively investing to ensure compliance with the EUDR by the 2025 deadline, warning that a new delay “would introduce considerable uncertainty and stakeholder disengagement and result in additional compliance expenses for businesses, contrary to the intended simplification.”
The letter stated:
“We deeply regret that a technical IT issue risks jeopardising the EUDR’s core objectives and entry into force, three months before the implementation deadline for companies.”
Instead of using the IT issue to delay or re-open the EUDR legislation, the letter called for a series of alternative measures, including recognizing a potential inability by companies to use the IT systems as force majeure for compliance and enforcement, having the Commission issue a notice establishing a short grace period to review controls and with suspended fines, and for the Commissions to establish a technical committee “to oversee implementation and facilitate technical discussions between authorities and operators.”
The EUDR was initially introduced by the EU Commission in November 2021, with proposals aimed at effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.
Under the new rules, companies that want to place relevant products on the EU market, or export them, will face mandatory due diligence rules, including a requirement to trace the products back to the plot of land where it was produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.
*Signatories to the letter include Alliance pour la Préservation des Forêts – Alliance for the Preservation of Forests, Association Technique Internationale des Bois Tropicaux – International Tropical Timber Technical Association, Cérélia, CID, Exott, Fair Trade Advocacy Office, Ferrero, Interholco, Mars Wrigley, Nestlé, Olam Agri, Precious Woods, Rainforest Alliance, Rougier, SIPH, Socfin/Sogescol, Solidaridad, Tony’s Chocolonely, and VOICE Network.
