Denmark, currently holding the European Union (EU) presidency, will table a so-called compromise proposal, as European governments and industry representatives warn that it is impossible to meet the deadline set by the European Commission – 30 December.
As Denmark takes over the Council presidency (from July to December 2025), Prime Minister Mette Frederiksen plans to table a compromise solution on the European Union Deforestation Regulation (EUDR) in the near future, as EU member states seek to reach agreement with the European Parliament ahead of the plenary session on 15 December.
Most European Union countries want the European Commission to "stop the clock" on the EU Deforestation Regulation, intensifying the debate over whether the EU will be able to meet the planned date for the regulation's entry into application and how the regulation might be simplified.
The dispute has sharpened in particular since the Commission proposed easing the reporting requirements of the 2023 regulation, which would oblige companies to prove that the products they make have not contributed to deforestation by providing geolocation data for a range of commodities – cocoa, coffee, palm oil, livestock products, timber and rubber – while offering limited exemptions from the regulation's compliance requirements for small businesses.
At a meeting of national representatives held on 29 October, "the majority of EU ambassadors took the view that the rules should not enter into force on 30 December 2025 as originally planned, and that any postponement of the regulation's entry into force should apply to all parties involved," a person familiar with the matter told the European media. Member states still hold differing views: some support a short pause to make technical corrections, while others are calling for a longer postponement of the regulation's implementation or a more extensive simplification of the requirements.
The Czech agriculture minister, Marek Výborný, was highly critical of the European Commission over the "chaos" surrounding the implementation of the EUDR: "The European Commission is taking very chaotic measures and issuing chaotic public statements."
European media report that Denmark's representatives plan to table a compromise proposal on the EUDR this week; the Council's position must be agreed with the European Parliament before its final plenary session on 15 December.
Manufacturing industries have reacted sharply to efforts to implement the Deforestation Regulation
Nineteen European industry associations representing the timber, pulp, animal feed, energy and related sectors called on the European Commission to postpone implementation of the regulation, describing the current timetable as "simply unworkable" and warning of a heavy burden on business and on meeting legal requirements throughout the supply chain. In an open letter published by the European Organisation of the Sawmill Industry, the so-called timber coalition warned that "recent amendments prolong a situation characterised by costly uncertainty and unrealistic implementation deadlines", adding that "it is neither realistic nor acceptable to expect companies to be ready to comply immediately with a regulation whose new arrangements were negotiated only a few weeks before it takes effect".
Despite all the objections set out above, the leadership of the European Commission last week reaffirmed its commitment to the current timetable. "We are simplifying the rules for small farmers while maintaining Europe's leading position in the fight against deforestation worldwide," said the European Union's Environment Commissioner, Jessika Roswall.
Those opposed, meanwhile, point to potentially significant and problematic technical difficulties for companies subject to the regulation's requirements that rely on IT systems connected to the TRACES platform. "In practice, most large companies in the sectors concerned will be unable to adapt their IT systems, which are designed to work with the TRACES platform," the letter warned, pointing to the indirect burden on small and micro-enterprises as verification reference numbers accumulate along the value chain.
Representatives of the trade sector likewise criticised the deadline set by the Commission as practically unworkable: "The interdependence of companies within the value chain makes the proposed postponement illusory, as smaller operators will have to adapt immediately in order to maintain their business relationships." Officials in Brussels defend both the regulation's environmental objectives and its deadline. EU officials point out that the timetable for implementation and entry into force reflects a political compromise and the urgency of putting the regulation into effect, even if industry points to technical difficulties.
Some EU member states have raised further objections
A week ago, the agriculture ministers of the Czech Republic, Latvia, Estonia and Poland called for the decision to be postponed and urged the Commission to include certain countries on a "no risk" list for deforestation, which would exempt some supply chains from the strictest requirements. The European Commission has already proposed limited changes, such as using postcodes for the geographical location of data from small agricultural businesses and requiring due diligence statements only from importers. Nevertheless, the governments, industry bodies and business associations of many European Union countries take the view that, for the law (the regulation) to be effective, more serious, more far-reaching and genuinely workable changes are needed.