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Report from
Europe
Contrasting views on EUDR delay proposal
Members of the European parliament are divided on the
proposal from the European Commission to delay the
introduction of the EU Deforestation Regulation (EUDR)
a further 12 months. Meanwhile, European timber trade
federations have expressed some disappointment at the
proposal, but also say a further delay could give time to
enhance operation of the Regulation.
The implementation of the EUDR had already been
pushed back a year from its originally intended date of
December 30, 2024.
Then, this September Jessica Roswall of Sweden,
European Commissioner for the Environment, Water
Resilience and a Competitive Circular Economy,
announced that the Commission were putting the proposal
for a further deferment to the European Council and
Parliament.
This would mean the EUDR would be introduced on
December 30, 2026, for large businesses trading in the so-
called ‘forest risk commodities’ it covers and June 2027
for SMEs.
Ms Roswell, speaking to the press, said that the reason for
the additional delay was that the ‘Traces NT’ EUDR IT
digital platform, to which businesses would upload due
diligence statements, geolocation coordinates for
commodity origins and other data, would not be ready in
time.
“We have concerns regarding the IT system given the
amount of information that will be put in and that is why,
with the co-legislators, we will seek to a postponement
one year,” she said talking to the press. “So, I hope that the
Council and the European Parliament will help us in this
pragmatic way to find the necessary time to get the IT
system to the capacity that we need.”
She was asked by journalists whether a delay would
provide time to introduce a much discussed zero-risk
category in the EUDR country risk benchmarking system
for countries with negligible risk of deforestation or forest
degradation. It was pointed out that such a category exists
under the EU Carbon Border Adjustment Mechanism,
which requires importers to report the greenhouse gas
emissions embedded in their goods and to purchase
CBAM certificates at a price linked to the EU's Emissions
Trading System (ETS).
Ms Roswell said it was too early to answer this question.
However, while re-emphasising that the capacity of the
EUDR IT system was the core reason for the proposed
EUDR deferment. She said the European Commission
(EC) would discuss other facets of the Regulation with
their EU co-legislators.
“The other thing that we also have been working on for a
long time is the simplification of different angles and
aspects [of the EUDR]and I will also discuss this with the
ministers and with the European Parliament,” she said.
Shortly after Ms Roswell’s announcement, a communiqué
was issued by the European Commission. It stated: ‘The
EU Deforestation Regulation is a key initiative to fight
deforestation, and we are committed to pursue its
objectives. Unfortunately, we have serious concerns
regarding the IT system due to the way the operators
would interact with the system and the related load
projections impacting the system. That is why, with the
co-legislators, we will seek a postponement by one year of
the EUDR’s entry into application.
That will give us the necessary time to take the measures
to strengthen the IT System and guarantee the smooth
entry into application of EUDR’.
The MEP Christine Schneider, the lead negotiator of the
conservative European People’s Party (EPP) Group in the
European Parliament welcomed the postponement
proposal on the basis it would provide the opportunity to
fine tune the EUDR.
“A key step in a necessary revision of the deforestation
regulation is the introduction of a zero-risk category,” she
added. “Regions and products that pose no risk of
deforestation must be treated in an unbureaucratic manner
and without additional documentation requirements. Only
in this way can the regulation have a targeted effect
without burdening those who can demonstrate that they
operate in a sustainable and responsible manner.”
Peter Liese MEP, the EPP Group’s spokesperson on
environment, suggested that if the EUDR was introduced
at the end of this year, it ‘would cause unsolvable
problems for many small foresters, farmers, and small and
medium-sized enterprises, such as medium-sized coffee
roasters’. Besides coffee, the EUDR covers timber, cocoa,
rubber beef/cattle, soya and palm oil.
Mr Liese said that, while the goal of stopping
deforestation is important, ‘overly bureaucratic’ regulation
would weaken acceptance of European environmental
policy’.
The liberal Socialists and Democrats Group said that the
postponement of the EUDR for another year would be
‘unacceptable’ and would potentially ‘undermine the EU’s
climate and environmental commitments’.
“Delaying implementation again would be a setback for
European environmental policy and for fair competition
for sustainable businesses,” said Delara Burkhardt, the
S&D Group’s lead negotiator on the EUDR. “Just ahead
of the UN climate conference in Brazil, in the heart of the
Amazon, the EU is sending the wrong signal.”
Belgian wood, furniture and textile federation Fedustria
said a delay in EUDR implementation would be ‘painful
given the ‘tremendous amount of work that has already
gone into the entire EUDR dossier over the past months,
both within the European institutions and internally within
Fedustria’.
“We are also very conscious of the efforts many
companies have already made to prepare for the new
obligations,” it stated. “Fedustria states clearly that we
fully support the idea of sustainable forest management
worldwide and the fight against deforestation.”
At the same time the organisation said that the current
approach of the EUDR is too complex and would lead to
‘administrative burdens, additional costs, and great
uncertainty for our companies’.
It also calls for administrative simplifications that respect
the EUDR’s objectives but make it feasible and affordable.
It urges a ‘real focus on existing rules and controls, which
already prove difficult to enforce today, instead of creating
new administrative burdens’.
“Fedustria emphasises the importance of sustainable forest
management but views this second postponement of the
EUDR as a signal the current approach is not working,”
said the organisation. “We call on the EC to use this time
to implement fundamental simplifications — respecting
the objectives, but with an eye for the economic reality of
our companies. Legal certainty, clarity, and practicality
must come first.”
Jakob Rygg Klauman, Director of the Danish Timber
Trade Federation said the body viewed the proposed
EUDR delay with ‘mixed feelings’.
“In spite of the Commission’s efforts to provide
simplifications to companies and authorities through
FAQs and guidelines, the practical implementation of the
EUDR still remains onerous and uncertain for downstream
operators and traders on the internal market,” he said.
“Further simplifications are needed and in that light, we
welcome the proposed delay. The fundamental challenge
with the EUDR, as it is currently designed, leads to
unnecessary multiplication of due diligence efforts and
inflated amounts of data to be handled in the Traces NT IT
system.
Instead, the focus should be on due diligence obligations
on first placers, coupled with a much stronger and uniform
enforcement by the competent authorities.” Having said
that, he added, proposing another EUDR postponement
could ‘keep companies in uncertainty and they may be
discouraged to continue their investments in compliance’.
French timber trade association le Commerce du Bois
(LCB) said it welcomed the EC’s willingness to ‘ensure a
realistic and workable implementation of the EUDR’.
“However, what European companies now need most
is clarity and confidence,” said Head of Markets and
Sustainability Alessandra Negri. “After successive
postponements the sector expects clear and stable
guidance, particularly regarding Due Diligence Statements
(DDS). We believe the success of the EUR depends on
a simplified and proportionate approach, ensuring that
environmental ambition goes hand in hand with
operational feasibility.”
To achieve this, she added, LCB recommends that the EC
Simplifies procedures – so no DDS are required
at point of sale or for downstream operators.
Ensures equal treatment, with one EUDR
implementation date and common rules for all
companies, regardless of size.
Recognises sustainable forest management
certification as a proven and reliable tool against
deforestation, degradation and illegality.
“By valuing existing efforts and proven systems,
theEUDR can remain both ambitious and achievable,
strengthening trust among companies and their long-term
engagement for sustainable forest management,” said Ms
Negri.
While no longer in the EU, the UK will also be affected by
the EUDR given that it imports so much timber from the
EU, including softwood and temperate hardwoods, but
also tropical timber via international traders. All of this
would have to be compliant with the Regulation as it
encompasses EU exports as well as imports. Additionally,
the Regulation would apply in Northern Ireland, which
remains in the European Single Market.
David Hopkins, Chief Executive of trade association
Timber Development UK said a further delay of the
EUDR would be a ‘shame’.
“There is lot of industry and NGO goodwill behind the
idea of regulating multiple commodities in the same way
as has been done with timber,” he said. “The problem
seems to be the practical implications [of the EUDR]. I
don’t know what the EU will do about this now, but it may
require a rethink focusing on the original aims and
objectives, but with a greater understanding of how supply
chains and markets currently operate. I hope we get a
meaningful outcome soon.”
A European-based international hardwood trader, involved
in both tropical and temperate species, voiced
disappointment at the delay proposal.
“We have worked hard to be ready for the EUDR and feel
it would benefit our trade and give us a unique selling
point, providing customers with that added assurance of
sustainability,” said a spokesperson. “Our suppliers have
really focused on preparation too, and they’ve spent a lot
of money, on audits, recruiting personnel specially and
investing in software systems to manage the data
required.”
See - https://audiovisual.ec.europa.eu/en/media/video/I-277574
and
https://webgate.ec.europa.eu/tracesnt/login
https://sustainabilityonline.net/news/epp-group-hails-eudr-
postponement-socialists-democrats-deem-delay-unacceptable/
https://sustainabilityonline.net/news/epp-group-hails-eudr-
postponement-socialists-democrats-deem-delay-unacceptable/
https://dktimber.dk/english/
https://timberdevelopment.uk/
https://www.lecommercedubois.org/
https://www.fedustria.be/en
Spanish economic success continues
Spain is described as the standout European economy,
continuing to grow robustly while others perform
‘drearily’, in a Financial Times (FT) report published end
of September.
The report notes that, since the start of 2024, the Spanish
economy has been growing at an annual rate of 3%,
compared with just over 1% for the Eurozone overall.
This has led S&P Global Ratings to upgrade Spain’s credit
rating.
“And the Bank of Spain has raised its 2025 growth
forecast to 2.6% underscoring the nation’s position as
Europe’s fastest-growing major economy and one of the
strongest in the advanced world,” says the report.
The FT attributes Spain’s success to a range of factors.
These include recovery in tourism after the pandemic,
‘New Generation’ EU fund grants for improving
infrastructure and cheap renewable energy.
Also playing a part, says the FT, has been immigration.
Spain has adopted a liberal approach to this, with a net
annual inflow of around 600,000 immigrants, most
working age.
“An expanding labour pool has pushed employment to
record highs and helped Spain to avoid some of the severe
skills shortages that have plagued its European peers,” said
the report. “The population spurt has also boosted
consumer spending. Spain has shown other advanced
economies how immigration can be an important source of
economic resilience, even in a period of instability at
home and abroad.”
But the FT cautions that immigration growth must be
managed carefully to continue to be beneficial, with per
capita GDP growth lagging real GDP on a purchasing
power parity basis. Productivity also needs to grow, and
the country’s unemployment rate is still the EU’s highest.
The FT report adds that support given for access to
affordable housing and public services needs to keep pace
with the level of immigration.
According to European construction market information
site Euroconstruct, the Spanish building sector, although
not without issues, looks set to continue to progress. From
2018 to 2023 the industry was building around 107,000
new dwellings per year, except in pandemic-hit 2020. In
2024, that jumped dramatically to 128,000.
The Euroconstruct report says that, if focused in a handful
of regions, this growth might look fragile, but analysis
shows it is fairly evenly distributed across the country.
Four regions that have ‘overperformed’ do account for two
thirds of the extra housing while accounting for one third
of the Spanish population.
But Euroconstruct points out that only two of these exceed
the Euroconstruct (EC-19 country) average of 3.1 housing
starts per 1000 inhabitants, Andalucia (3.6) and Castilla y
León (3.6).
The forecast for 2025 is for further housing construction
growth to 135,000 units. This has led to some media
reports that Spain could be headed for another housing
market ‘bubble’ as seen in 2008. But Euroconstruct points
out that there is no speculative lending, increasing risky
debt or oversupply.
See: https://www.ft.com/content/643a6a5d-f5af-464c-86c3-
0fe5396d707e
https://www.euroconstruct.org/news/making-spanish-housing-
kind-of-great-again/
French housing renovation grant scheme restarts
Suspended at the end of June due to a massive influx of
applications, the MaPrimeRénov' initiative in France to
subsidise housing renovation and improve energy
efficiency reopened at the end of September, reports
French timber trade association Le Commerce du Bois.
The restart of the scheme will be tightly regulated, with
just 13,000 new applications for funding allowed by the
end of the year. This said the French housing ministry is
due to the high backlog of applications still to be
processed .
Between June 4 and 23, 29,000 applications were
registered, 20,000 more than the usual average , bringing
the total outstanding to 61,000 . Consequently,
applications filed between September and December will
not only be limited, but will also not be processed until the
first quarter of 2026.
Each French administrative area will be allocated a
specific quota of applications, and the platform will be
automatically closed once this ceiling is reached.
MaPrimeRénov' will also focus the lion’s share funding on
the most vulnerable households. Initially only ‘very low-
income’ homeowners will be able to apply for a grant. The
scheme will then expand to ‘Low-income households’ in a
later phase, depending on the rate of submissions.
In a further development the funding ceiling has been
lowered to €30,000 for a ‘standard energy renovation’ and
€40,000 for a ‘two step’ jump in property energy
efficiency improvement. The money will also be targeted
only at the worst performing housing in terms of insulation
and wider energy efficiency.
See:
https://www.lecommercedubois.org/actualites/1348/maprimereno
v-ce-qui-change-pour-la-reprise-du-parcours-accompagne-a-l-
automne-2025
German economic slowdown exceeds forecast
According to a report from international professional
services network KPMG published September, the
German economy shrank more than anticipated in the
second quarter of 2025.
According to the German Federal Statistical Office, states
the report, gross domestic product (GDP) fell by -0.3%
compared to the previous quarter. Earlier forecasts were
for -0.1% contraction for the period from April to June
2025. “Industrial production actually developed worse
than previously assumed,” said KPMG “While both
private and public consumption increased, investment in
buildings, machinery and vehicles fell significantly.
Foreign trade also failed to provide any positive impetus.”
US trade policy uncertainty was implicated in latest trends,
with Germany’s GDP growth of 0.3% in Q1 attributed to
business being brought forward due to fears of US import
tariffs.
“Since August 7, 2025, most imports from the EU to the
USA have been subject to tariffs of 15% and, as the US is
a very important market for German goods, this is not
without consequences,” states KPMG. “Many companies
suffered sales losses in the second quarter, particularly in
business with the US.”
Despite the subdued economy KPMG suggests the mood
among companies in Germany has improved slightly. The
IFO Business Climate Index, which measures
entrepreneurs’ sentiment about the current business
situation and their expectations for the next six months
rose to 89.0 points in August 2025, up from 88.6 points in
July 2025. “That meant the most important German
economic barometer rose for the sixth month in a row and
reached its highest level since April 2024,” said KPMG.
The current forecasts of German economic research
institutes and government organizations on the
development of German GDP, it says, are fluctuating
between -0.2% and +0.4% for the calendar year 2025 and
+0.7% and +1.7% for 2026.
See: https://kpmg.com/de/en/home/insights/overview/economic-
key-facts-germany.html
Trade deal with Indonesia underlines EU’s Asian trade
ambition
According to The Interpreter, the online international
trends analysis magazine from The Lowy Institute think-
tank, the EU-Indonesia Comprehensive Economic
Partnership Agreement (CEPA), signed September, is a
‘good sign for the EU’s broader Asian trade ambitions’.
With the new tariff situation in the US and sharp increases
in EU-bound Chinese industrial goods, notably cars, plus
growing concern about overreliance on Chinese ‘critical
minerals’, the EU ‘needs new markets and supply chains’,
says the Interpreter. This was reflected in both the signing
of the CEPA with Indonesia, and the new tariff-
eliminating EU-Mercosur trade deal signed early
September, it adds.
The Interpreter describes Southeast Asia until now as a
‘major lacuna in the EU’s extensive network of free trade
agreements’. It points out that trade deal discussions with
Malaysia were suspended in 2012, those with Thailand
came to a halt in 2014, and those with the Philippines
broke down in 2017. But now it says the situation is
shifting, with recognition that the ‘EU’s trade with
Southeast Asia has substantial growth potential and
synergies’.
The report highlights that there are still hurdles to jump in
the EU-Indonesia agreement and says that ‘the true depths
of the EU’s newfound [trade] pragmatism will become
clearer during the ratification process, when the EU
Parliament and member states have their say [on CEPA]’.
Earlier agreements with Singapore and Viet Nam ratified
in 2019 and 2020 underline the potential for EU-Asia
trade. In its first four years, the EU–Viet Nam agreement
has resulted in a 50% increase in Viet Nam’s exports to
the EU and a 40% gain in EU exports to Viet Nam.
See: https://www.lowyinstitute.org/the-interpreter/europe-
notches-early-win-indonesian-free-trade-deal
Timber construction demonstrator launched in
Denmark
Danish Social and Housing Minister Sophie Hæstorp
Andersen officially launched a new timber construction
demonstrator building at Danish Technological Institute in
September, reports the Danish Timber Trade Federation
(DTTF).
The Build-in-Wood Demonstrator in Høje Taastrup near
Copenhagen is set to become an important platform in the
sector’s efforts to increase the use of wood and other
biogenic materials in larger buildings, says the DTTF.
In the Demonstrator House, structural strength, moisture,
acoustics, and indoor climate, among other factors can be
monitored. It is designed to help generate more
knowledge, better documentation and new standards for
timber construction.
The DTTF says new stricter climate requirements in
Denmark’s Building Regulations, from 1 July 2025 have
created an urgent need in the Danish construction sector
for well-documented building solutions with low climate
impact. But the sector has held back from using wood in
load-bearing construction because of lack of practical
experience with acoustics, moisture management, fire
protection, and durability. The Demonstrator is intended to
remedy that.
“There are still barriers to building in timber at larger
scale,” said Institute Director Mette Glavind. “And there is
a need for updated knowledge about wood throughout the
value chain of construction. With the Build-in-Wood
demonstration building, we finally get the opportunity to
document how wood and bio-based materials work in
large scale in practice, knowledge that one cannot imagine
simply from a desk.”
The Build-in-Wood Demonstrator is a 340 sq.m two-
storey building with a load-bearing structure of glulam
columns and cross-laminated mass timber floor slabs. It is
based on a modular building system optimized for
buildings of 3-8 storeys and is designed for disassembly,
allowing later reuse. It incorporates integrated sensor
technology for continuous data collection, and it is open to
the whole sector for tests and demonstrations.
It was constructed by the Technological Institute with
support from the EU. A number of sponsors also
contributed materials and equipment.
See: https://dktimber.dk/english/
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