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EU Deforestation Regulation Postponed to 2025

The EUDR's delay allows businesses to better prepare. But the pressure to protect forests and manage supply chains responsibly remains high.

In this image I can see few green color trees, small plants and the wooden path.
In this image I can see few green color trees, small plants and the wooden path.

EU Deforestation Regulation Postponed to 2025

The EU Deforestation Regulation (EUDR), a significant step towards preserving forests and combating climate change, has been postponed until the end of 2025. This regulation, which requires businesses to prove their commodities are not linked to deforestation, has already spurred action among businesses and investors.

Deforestation, primarily driven by agriculture, poses a severe threat to the environment and communities. It contributes to around 75% of global deforestation, with both large-scale commercial farming and smallholder subsistence farming playing significant roles. Forests, vital for climate regulation, biodiversity, and human livelihoods, are being cleared at alarming rates.

The EUDR aims to tackle this issue by raising the bar for traceability. It requires businesses to demonstrate that their key commodities comply with local laws and are not linked to deforestation. This shift towards a more quantitative approach to managing deforestation risk has already begun, with many businesses geolocating plots and mapping supply chains in anticipation of the regulation.

Investors are also taking note. There's a growing interest in biodiversity-positive activities, with higher-quality certifications often commanding price premiums. This trend, coupled with the EUDR's delayed implementation, creates a window for businesses to prepare and adapt their practices.

The EUDR's postponement until the end of 2025 provides additional time for businesses and investors to ready themselves for the new requirements. Proper enforcement at EU borders and simplified implementation processes can foster fairer markets. As the regulation inches closer, the pressure to protect forests and manage supply chains responsibly intensifies.

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