The European Parliament has approved a one-year delay for the EU deforestation law, which aims to ban products sourced from deforested or degraded land. Initially set to take effect in December 2024, large companies now have until December 30, 2025, to comply, while small and micro enterprises will have until June 2026.
Why the Delay?
The extension was proposed by the European Commission following concerns raised by EU member states, non-EU countries, traders, and operators who feared they would not be able to meet the original compliance deadline.
The regulation mandates that companies demonstrate their products—such as soy, beef, palm oil, coffee, cocoa, and EU agricultural exports—are sourced from supply chains free from deforestation.
“This extension ensures smoother implementation without compromising the law’s objectives,” said an EU spokesperson.
Support for Businesses
To assist businesses with compliance:
- The European Commission will deliver a risk classification system and information platform by June 2025.
- A full regulatory review is set for June 2028 to explore simplified reporting and reduced administrative burdens.
The Bigger Picture
This regulation addresses the environmental impact of deforestation linked to EU consumption, with campaign group Global Witness reporting that EU commodity imports caused 120 million metric tons of CO₂ emissions in 2021-2022.
The law aligns with the EU’s broader climate goals, aiming to reduce emissions tied to global deforestation and contribute to net-zero targets.
Next Steps
The delay is expected to pass into law following formal approval from EU member states this week. The extended timeline gives companies additional time to align supply chains while continuing the fight against deforestation-driven emissions.
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