EU: EU Deforestation Regulation delayed again ?

 

The European Commission has put forward a proposal to postpone the implementation of the EU’s flagship anti-deforestation law for the second consecutive year, as part of its ongoing effort to cut back on regulatory red tape.

The legislation, which would oblige companies to stop sourcing commodities produced on land that has been cleared through deforestation, has faced strong opposition from many businesses, who argue that it creates complex and burdensome compliance requirements. In addition, several of the EU’s major trading partners have voiced objections to the law.

The announcement came shortly after the Commission finalized trade talks with Indonesia, the world’s leading exporter of palm oil – a crop that has been one of the primary drivers of deforestation over the past several decades.

Originally, the regulation was set to take effect on December 30, 2024, but the Commission has now proposed pushing back its application until the end of the following year. This extension would grant companies and trading partners an additional 12 months to prepare for the law’s new tracing and due diligence obligations.

The anti-deforestation regulation covers key commodities such as coffee, beef, soy, and palm oil, and requires companies to conduct extensive checks throughout their supply chains to confirm that these goods were not linked to deforestation or violations of human rights. However, some businesses have argued that such detailed information is often extremely difficult, if not impossible, to obtain.

This delay may cast a shadow on the EU’s credibility in terms of its regulatory efforts.