On 3 December 2024, the European Union provisionally agreed to postpone the implementation (introduction, entry into force) of the EU Deforestation Regulation (EUDR) by one year, thereby offering relief to the forestry and timber industry. Industry leaders in both Austria and Germany welcomed the delay, but continue to take a united position, calling for the regulation to be substantially revised in order to reduce the bureaucratic burden and ensure that it can be applied in practice.

The postponement of the regulation, which requires formal approval by the EU Parliament and Council, is regarded as necessary but only a partial solution. The President of the Austrian Timber Industry Association, Herbert Jöbstl (Herbert Jöbstl), described the situation as "half a step in the right direction", while the Managing Director of the German Timber Industry and Sawmill Association (DeSH), Julia Möbus (Julia Möbus), said that the agreement (on the postponement) provides much-needed clarity for companies preparing for the regulation to apply at the end of 2025.

Both Herbert Jöbstl and Julia Möbus criticised the European Union for failing to address the structural shortcomings of the EUDR. "Postponing the implementation of the EUDR is useful, but it does not resolve the fundamental problems," said Mr Jöbstl. Julia Möbus stressed: "The European institutions lacked the courage to make the substantial adjustments needed to cut red tape and protect the competitiveness of European forestry and the timber industry."

At the centre of the criticism is the regulation's requirement that businesses submit comprehensive documentation and evidence regardless of the actual deforestation risk associated with their supply chains. Representatives from both Austria and Germany are convinced that such a one-size-fits-all approach creates unnecessary complexity and considerable administrative costs, while doing little for forest protection.

"A differentiated risk assessment is essential," said Julia Möbus. "The detailed and painstaking documentation requirements should be adapted on the basis of the actual deforestation risk, so as to avoid harming domestic forestry and the timber industry." Mr Jöbstl echoed this view, stressing that the regulation's excessive reporting obligations undermine its effectiveness and burden businesses with "impractical requirements".

Both Austria and Germany are urging the EU to use the coming year (the waiting period) to revise the EUDR. Herbert Jöbstl called on the European Union to make the regulation more practical and better suited to its objectives. "An improved EUDR would cut unnecessary red tape and allow policymakers to deliver on their promises of efficiency," said the President of the Austrian Timber Industry Association.

Julia Möbus stressed the importance of acting quickly: "Without substantial changes, the EUDR risks doing lasting damage to forestry and the timber industry without achieving its intended objectives."

The debate on the EUDR is bound up with the wider debate on the EU Green Deal and its impact on the timber industry. Industry leaders in Austria and Germany support the Green Deal's focus on the bioeconomy and renewable resources such as timber, but stress the need for balanced policy.

"Using timber in construction is not possible without sustainable timber harvesting," said Mr Jöbstl, calling for the Green Deal to reflect the role of forestry in meeting Europe's climate and economic goals. Both Austria and Germany argued for a more pragmatic approach that balances environmental objectives with the need to ensure economic viability.

The postponement of the Deforestation Regulation's deadline awaits final approval in the European Parliament, which is expected to vote in mid-December, after which the European Council will take its decision. If ratified, the extension will give companies more time to adapt, but both Austria and Germany insist that this time should also be used to remedy the regulation's shortcomings.

"A practical, revised Deforestation Regulation is essential if its objectives are to be achieved without jeopardising the forestry and timber industry," concluded Julia Möbus.