ESG Post

Regulators

EU extends application deadline for deforestation regulations

The European Union Council has agreed to postpone the application date of the EU deforestation regulation by 12 months, providing additional time for member states, third countries, and traders to fully comply with due diligence requirements. This regulation, designed to ensure that commodities such as cattle, wood, cocoa, soy, palm oil, coffee, and rubber sold or exported from the EU are deforestation-free, will now take effect on December 30, 2025, for large operators and traders, and on June 30, 2026, for micro- and small enterprises.

The deforestation regulation initially came into force on June 29, 2023, with provisions expected to be applied by December 30, 2024. However, due to compliance readiness concerns, the Council accepted the European Commission’s proposal for a timeline extension. This delay is intended to help stakeholders establish the necessary due diligence systems for identifying deforestation risks in supply chains, as well as for monitoring and reporting compliance with EU standards.

This targeted amendment does not alter the regulation’s primary objective, which is to minimize the EU’s contribution to global deforestation and forest degradation by mandating that products entering or leaving the EU are sourced from land not subject to deforestation or forest degradation after December 31, 2020. The regulation specifically targets commodities associated with agricultural expansion, a primary driver of deforestation, thus reinforcing the EU’s commitment to sustainable supply chains.

The Council will now inform the European Parliament of its decision, which must be agreed upon by both co-legislators before the regulation is officially adopted and published in the Official Journal of the EU, enabling it to enter into force by year’s end.

As a major consumer of commodities linked to deforestation, the EU is in a position to reduce its environmental impact significantly. By ensuring these commodities are deforestation-free, the EU seeks to promote sustainable sourcing and mitigate its role in global deforestation and forest degradation.