The European Commission has officially announced the postponement of the enforcement of its EU Deforestation-free Regulation (EUDR), originally slated for the end 2024. This decision follows concerns from EU member states, non-EU countries, and industry stakeholders about the feasibility of meeting the original 2024 deadline. Large companies now have until 30 December 2025, while small and micro-enterprises will have an extended deadline until 30 June 2026.
In addition to the postponement, Members of the European Parliament have introduced a “no-risk” category for countries with stable or increasing forest areas. Commodities from these countries would be subject to reduced checks under the EUDR. The specific countries that will be classified as “no-risk” and qualify for reduced checks under the EUDR are still unknown. This amendment has sparked controversy, with critics arguing that it could undermine the regulation’s effectiveness by creating potential loopholes.
To support compliance efforts, the European Commission published detailed EUDR guidelines in October. While these guidelines are comprehensive, they may still be subject to updates as the market evolves. You can access the guidance in full here.
While the guidance offers clarity on compliance requirements, the market continues to face challenges regarding price transparency. There is significant variation in pricing for EUDR-compliant palm oil, with limited transparency in the breakdown of associated costs.
Several prominent players in the market are already committing to EUDR-compliant components, despite the enforcement delay, however, the lack of transparency creates uncertainty for buyers attempting to understand the pricing landscape.
Vesper’s Forward Palm Oil Benchmarks for the EU: Bridging the Transparency Gap
To address this issue, Vesper has introduced benchmarks that provide market participants with consistent and transparent pricing data. By offering daily updates of a range of Forward prices, Vesper enables businesses to choose the pricing structure that best suits their needs. These options include:
- Palm Oil, Crude – CIF Rotterdam (paper market)
- CPO, RSPO SG Low Moah, CIF Rotterdam
- CPO, RSPO SG Low Moah (EUDR compliant), CIF Rotterdam
Access Vesper’s Pricing Data
Interested in these pricing options and their calculation across different countries? Schedule a meeting with one of our commodity experts. Our team will guide you through the methodologies and provide access to real-time pricing information, ensuring you stay ahead of regulatory changes and market trends.