KUALA LUMPUR, Sept 24 — The one-year postponement of the European Union Deforestation Regulation (EUDR) to end-2026 offers short-term relief for exporters of palm oil and other commodities, easing near-term compliance risks and cost pressures, said CIMB Securities Sdn Bhd.
However, this has also prolonged regulatory uncertainty surrounding the EUDR, while simultaneously leaving room for further negotiations or potential policy adjustments before the new deadline.
“Environmental groups have criticised the move, warning that each postponement heightens political pressure and reputational risks for the EU’s climate agenda.
“Overall, we view the development as slightly positive for palm oil producers, as the delay should ease concerns of weaker palm oil demand in the first quarter of 2026 due to EUDR implementation,” CIMB Securities said in a note today.
According to European Union (EU) Environment Commissioner Jessika Roswall, the EU is seeking to postpone the EUDR for a second time, pushing back implementation by another year to end-2026. The regulation was originally scheduled to take effect on December 30 this year.
She said the proposed delay is mainly due to concerns over the readiness of the EU’s information technology (IT) system to handle the vast traceability data.
The regulation has faced resistance from major commodity suppliers, including Brazil, Indonesia, and the United States, as well as from some EU member states like Poland and Austria.
