Malaysia Welcomes EU Decision to Delay Deforestation Regulations
Enforcement of the landmark European Union Deforestation Regulation (EUDR), is set to be delayed by a year. Large companies will have until the end of December 2025 to comply while smaller enterprises have until June 2026. The EU Commission proposed delaying the law after significant backlash from some member states as well as major palm oil exporters such as Malaysia and Indonesia.
Under the long-contested regulation, companies producing and shipping beef, coffee, palm oil, and timber needed to prove their supply chains did not contribute to deforestation at the risk of hefty fines. The new rule would require documentation proving traceability of the commodity to its original plot of land using satellite coordinates and maps. This delay would give global supply chains time to adjust to the technical and administrative mandates without disrupting trade, especially for smallholder farmers.