EU Deforestation Law: Companies Granted One-Year Extension for Compliance

The European Parliament has voted to postpone the application of the EU deforestation law by one year, giving companies until December 30, 2025, to comply with new regulations aimed at ensuring products sold in the EU are not sourced from deforested land

This decision comes in response to concerns raised by various stakeholders about their ability to fully comply with the rules by the end of 2024

The EU deforestation law, a crucial component of the bloc's climate change and biodiversity protection efforts, has been given a new timeline for implementation. The European Parliament's decision to extend the compliance deadline reflects a balance between environmental urgency and practical considerations for businesses

Key Changes and Amendments:

1. Extended Compliance Deadline: Large operators and traders now have until December 30, 2025, to comply with the new regulations
2. Small Business Consideration: Micro- and small enterprises have been granted an additional six months, with their deadline set for June 30, 2026
3. New Risk Category: A "no risk" category has been introduced for countries with stable or increasing forest area, which will face less stringent requirements
4. Country Benchmarking System: The European Commission is tasked with finalizing a country benchmarking system by June 30, 2025

The law targets products such as cattle, cocoa, coffee, palm oil, soya, wood, rubber, charcoal, and printed paper, which are significant contributors to global deforestation

This regulation is part of the EU's broader strategy to combat climate change and biodiversity loss, addressing the estimated 10% of global deforestation linked to EU consumption

Key Takeaways

1. The EU deforestation law implementation has been postponed by one year to allow for better preparation and compliance.
2. Different deadlines have been set for large companies (December 2025) and smaller enterprises (June 2026).
3. A new "no risk" category has been introduced to streamline requirements for countries with positive forest management records.
4. The law aims to significantly reduce the EU's contribution to global deforestation, estimated at 10% of the total.
5. This extension balances environmental urgency with practical implementation challenges faced by businesses and countries.

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Article by Euisung Lee, Asuene Global Business team. Asuene Global Business team, the global sustainability intelligence team at Asuene, acts as the guidepost through the evolving landscape of corporate sustainability. The Asuene Global Business team identifies emerging trends and regulations in decarbonization, climate policy, and broader ESG matters. This knowledge is translated into actionable insights through white papers, articles, webinars, and regular updates on our website and social media.