It’s official. After months of negotiations, the European Union has struck a compromise on its deforestation regulation, officially delaying its implementation until January 2027. The agreement, reached after overnight trilogue talks between the European Commission, the Council and the Parliament, officially pushes back the start date by a full year and removes one of the most controversial provisions: the obligation to pass reference numbers through the supply chain.
Wood Central understands that the requirement would have forced companies to attach and forward unique identifiers for raw materials, semi‑finished goods and final products, creating hundreds of thousands of codes across the wood and paper industries. By scrapping the rule, lawmakers have eased what industry leaders described as “an unworkable bureaucratic burden” while keeping intact the regulation’s core aim of ensuring that products entering the EU market are deforestation‑free.
“The deforestation regulation has finally been adjusted so that the fundamental problems were recognised and a serious threat to diverse supply chains could be prevented,” said Dr Erlfried Taurer, chairman of the Association of the Austrian Wood Industry. In a statement provided to Wood Central, Taurer argued that the regulation now focuses on the point where raw materials and products first enter the market, rather than burdening the industry with excessive bureaucracy.
Despite the revisions, the regulation will still introduce new requirements for millions of forest owners, including those in countries where deforestation is not a risk. “Forestry and the wood industry will have to work together on solutions to secure the flow of raw materials and the supply security of our wood value chain,” Taurer said. “Together we will use every opportunity to push for practicality and further simplifications in politics.”
The European Commission defended the compromise, stressing that the regulation remains central to Europe’s climate and biodiversity agenda. “The Commission welcomes the provisional political agreement reached tonight as it ensures clarity and predictability on the entry into application and the requirements for economic operators,” the institution said in a statement.
“The agreed amendments will reduce the data load on the IT system so that it is capable of handling the expected due diligence statements and simplified declarations submitted by all operators. This will provide for a well‑functioning IT system, which is necessary for a smooth implementation of the EUDR. We now must ensure that the EUDR delivers on the ground.”
Commission officials also emphasised that the regulation is designed to protect Europe’s credibility in global trade. “The EUDR is a cornerstone of the EU’s Green Deal and our commitment to halt deforestation worldwide,” the Commission added. “By ensuring that products placed on the EU market are deforestation‑free, we are sending a clear signal to trading partners that sustainability is non‑negotiable. The adjustments agreed today are pragmatic, but they do not weaken the environmental ambition of the regulation.”
Environmental groups, however, warned that the delay and the simplifications risk undermining Europe’s credibility as a climate leader. WWF, joined by more than 90 NGOs, urged EU leaders to “honour their commitments and implement the EUDR in full, without weakening its core provisions,” stressing that tropical forests from the Amazon to Southeast Asia are disappearing at alarming rates. ClientEarth and allied NGOs argued that further postponements “create legal uncertainty and weaken the EU’s ability to tackle its role in global deforestation,” calling the compromise a concession to industry.
The Main elements of the agreement
Under the compromise, the obligation to submit due diligence statements will fall exclusively on operators who first place products on the EU market. Only the first downstream operator will be responsible for collecting and retaining the reference number of the initial due diligence statement, rather than passing it further along the supply chain.
Micro and small primary operators will benefit from a clarified, simplified declaration process. They will only be required to submit a one‑time declaration and will receive a declaration identifier, which will serve as sufficient proof for traceability purposes.
Both co‑legislators also emphasised the importance of continued dialogue with experts, stakeholders and operators during implementation. This exchange will take place within the Commission’s existing multi‑stakeholder platform for protecting and restoring the world’s forests. In addition, competent authorities will be required to report significant IT system disruptions to the Commission to ensure smooth functioning, though with flexibility to minimise administrative burdens.
And to further reduce red tape, certain printed products — including books, newspapers and printed pictures — have been removed from the scope of the regulation, reflecting their limited deforestation risk. Finally, the European Commission has been tasked with conducting a simplification review and presenting a report by 30 April 2026. The review will assess the impact and administrative burden of the EUDR, particularly for smaller operators, and propose ways to address identified issues. Where appropriate, the report may be accompanied by legislative proposals to further streamline implementation.
- To learn why failures with the EUDR’s IT system could lead to further delays in the rollout of the world’s strictest deforestation regulation, click here for Wood Central’s special feature.
