Negotiations for EU institutions reached a compromise regarding the EU’s ban on commodities linked to deforestation. The ban will be delayed by a year, with no changes to the initial proposal by the European Commission. This delay will provide companies and countries more time to adapt to the new regulations.
Delayed Ban on Deforestation-linked Commodities
In October, the European Commission proposed a 12-month delay to the ban, pushing the implementation date to Dec. 30, 2025. This delay was a response to concerns from 20 EU countries, some companies, and nations like Brazil and Indonesia. EU governments supported the Commission’s proposal, acknowledging the need for more time.
No Changes to EU Deforestation Regulation
EU lawmakers had voted to delay the regulation and proposed additional changes, including creating a “no risk” category for certain countries. These changes would have reduced the compliance burden for countries with sustainable forest management practices.
However, after a meeting between EU negotiators on Tuesday, they agreed to maintain the original rules. The regulation will not be watered down, and the existing requirements will remain in place.
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Timeline for Implementation
The new regulations will apply to large operators and traders from December 30, 2025. Smaller enterprises will have an additional six months to comply. This extended timeline is designed to allow companies worldwide to adjust to the changes.
The European Commission also committed to reviewing the possibility of simplifying requirements for countries with proven sustainable forest management.
Also read: European Commission Announces €4.6 Billion Investment in Decarbonization and Clean Hydrogen Projects
“Emergency Break” and Future Assessments
The compromise also includes an “emergency break” provision. If the online system for companies is not fully operational by December 2025, or if the country classification is not published six months prior, the regulations could be paused. The European People’s Party, which had pushed for further changes, welcomed these provisions.
Implications for Global Supply Chains
The deforestation regulation targets the supply chains of beef, soy, wood, cocoa, palm oil, coffee, and rubber. The aim is to prevent EU consumers from contributing to deforestation in regions like the Amazon and Southeast Asia.
This landmark regulation is a significant step in the fight against climate change. However, countries like Brazil and Indonesia argue that it could harm small-scale farmers and restrict access to the EU market.
