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Roswall expressed her intention to postpone the ban on imports for deforestation-linked commodities, such as palm oil, for another year, following pressure from the United States and several other member states to allow more time for operators, third countries, and smallholders to prepare their compliance and due diligence systems.
She explained that the postponement was necessary to manage the heavy data demands of the IT system designed to enforce the new rules, and without fixing these problems, could disrupt EU trade and operations.
“We have concerns regarding the IT system, given the amount of information that we put into the system. And that is why we will seek, with the co-legislators, to seek for a postponement of one year. And that will, of course, also give us time to look at the different risks,” she said.
But approval from the European Parliament and member states is still needed, Roswall said, adding that talks with both will follow.
The European Commission originally planned to enforce the EUDR starting December 30, 2024. But this was postponed by a year to December 30, 2025, for larger operators, and until June 30, 2026, for smaller businesses amid pressure from industry groups and major exporters such as Indonesia and Malaysia.
The current delay of the EUDR to December 2025 provided some relief in prices for the first half of the year. But those who had already committed to EUDR compliance in 2024 were affected by the deferment, and the looming possibility of yet another extension has hurt confidence in long-term demand in 2025.
Before this announcement, Fastmarkets had reported on the price differentials observed between EUDR- and non-EUDR-compliant offers for European crude palm kernel oil cargoes from Malaysia and Indonesia, first noted on September 4.
Uncertainty surrounding the EUDR implementation built a risk premium into forward offers, particularly for shipments late in the fourth quarter of 2025 and early in 2026, which led European buyers to hold off on long-term commitments.
The most recent dual prices for CPKO cargoes, with and without the EURD premium, were reported by Fastmarkets on September 19 for November-December shipment.
Non-EUDR November-December CPKO offers were heard at $2,100 per tonne CIF Rotterdam, while EUDR-compliant offers were at $2,525 per tonne CIF Rotterdam, representing a difference of $425 per tonne between the two prices, with no buying interest expressed.
“It will be difficult for the EU to delay implementation of EUDR again without losing credibility, but there might be some flexibility on the enforcement. Hopefully, we don’t have too long to wait, and the market will break out from the limbo we find ourselves in,” a trade source told Fastmarkets.
But the postponement could further erode confidence among environmental groups, trading partners, and some member states about whether the EU is serious about its commitments under the Green Deal and climate goals.
“I thought it would go ahead this time; however, buyers were very cautious, having paid a premium for EUDR at the end of 2024, so many had been standing back, awaiting confirmation of implementation. Some are now saying it may never happen now,” a second market participant said.
With little faith in the EUDR ever being implemented due to such delays, others believe that the additional time needed to build up compliance infrastructure regarding traceability, documentation, and monitoring, particularly for smallholders, is warranted. But further delays could risk complacency.
Our palm oil prices are market-reflective, assessing both the buy- and sell-side of transactions and are intended to be used as price references for negotiation and in physical spot and future contracts, as well as the settlement price of financial derivatives. Our price data is unbiased and verified. Find out more.