A Pragmatic and Politically Viable Path Forward for Zero-Deforestation Supply Chains
Europe doesn’t need another delay. It needs a solution. As the debate around the EU Deforestation Regulation (EUDR) intensifies, one thing is clear: the Regulation cannot succeed through postponements, uncertainty, or fragmented implementation. It can only succeed through a pragmatic, politically viable, and market-oriented approach.
Together with key producer countries and European partners, we have put forward a proposal that balances two equally important realities:
• the non-negotiable principles of the EUDR: zero deforestation, full traceability, and robust due diligence;
• and the socio-economic diversity of supply chains, from companies that are already fully compliant to those that still struggle with technical and financial barriers.
Why the EUDR Needs a Realistic Implementation Path
The ambition of the EUDR is right. The challenge lies in how and when it can be achieved.
Some operators have already invested heavily in traceability systems, deforestation-free verification, and farm-level mapping.
Others, especially SMEs and millions of smallholders in Indonesia, Malaysia, Guatemala, and other producing countries, face obstacles that current timelines cannot realistically address.
Delays have already shown their limits.
A sustainable regulation must be implementable, not just ambitious on paper.
A Balanced, Market-Oriented Solution
To unlock a way forward, we propose a pragmatic and politically realistic pathway that keeps the EUDR’s ambition intact while ensuring competitiveness, fairness, and innovation across global supply chains.
1. Transform the current six-month grace period into a 24-month testing phase (without sanctions)
A structured period in which operators, competent authorities, and the Commission can test systems, identify technical gaps, and resolve them collaboratively.
2. Create a “Community of Practice” for each commodity
A platform that brings together producer countries, operators, and technical experts to share benchmarks, identify bottlenecks, and solve problems in real time.
3. Substantial public–private funding for smallholder inclusion
A major EU-led digital transformation effort focused on traceability tools, training, and capacity-building, ensuring smallholders are not excluded from EU markets.
Strengthening Competitiveness Through Sustainability
Our proposal preserves the EUDR’s ambition while giving all stakeholders, from multinationals to small farmers, the time, tools, and capacity to comply.
This is not about lowering standards.
It is about making high standards achievable, turning sustainability into a competitive advantage rather than a barrier.
A well-implemented EUDR can accelerate innovation, strengthen free trade, and position Europe as a global leader in sustainable supply chains.
Moving Forward
We will continue engaging with the European Parliament, the Commission, Member States, businesses, and producer countries to promote a realistic and constructive path forward.
👉 Letter to EU institutions here >>>
