• Extended timeline: Large companies must comply with the EU deforestation regulation by December 2025; small and micro businesses have until June 2026.
• Scope of regulation: Companies must prove their products—like soy, beef, palm oil, and coffee—are not linked to deforestation.
• Implementation tools: The European Commission will deliver risk classification tools and systems to assist businesses by June 2025.

The News:

The European Parliament 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 operators now have until December 30, 2025, to comply, while small and micro enterprises have until June 2026.

Why the Delay?

The European Commission proposed the extension in response to concerns from EU member states, non-EU countries, traders, and operators who flagged they would be unable to meet the original timeline.

The regulation requires companies to demonstrate that products like beef, soy, palm oil, coffee, and cocoa—as well as EU farmers’ exports—are sourced from supply chains free of deforestation.

“This extension ensures smoother implementation without compromising the law’s objectives,” said an EU spokesperson.

Following the vote, Parliament’s rapporteur Christine Schneider (EPP, DE) said: “We promised and we have delivered. We paid attention to the calls of several sectors facing difficulties and ensured that affected businesses, foresters, farmers and authorities will have an additional year to prepare. This time must be used effectively to ensure that the measures announced in the Commission’s binding declaration, including the online platform and risk categorisation, are consistently implemented to create more predictability throughout the supply chain. An impact assessment and further simplification will follow in the review stage for low risk countries or regions, providing countries with an extra incentive to improve their forest conservation practices.

“Parliament will closely monitor the process to reduce bureaucracy and ensure that the Commission’s words are followed by actions. Our goal remains clear: stakeholders and consumers must not be negatively impacted by the implementation of this regulation.”

Related Article: EU Delays Deforestation Regulation Implementation by One Year but Discards Changes

Support for Businesses

To assist with compliance:

• The risk classification system for countries and regions and the information platform for operators will be ready by June 2025.
• The European Commission also committed to analyzing measures that simplify reporting and reduce administrative burdens, with a full regulatory review expected by June 2028.

The Bigger Picture

The law responds to alarming deforestation impacts tied to EU consumption. Campaign group Global Witness reported that EU commodity imports caused 120 million metric tons of CO₂ emissions in 2021-2022.

The regulation is part of the EU’s broader environmental agenda to combat global deforestation and align with net-zero climate targets.

Next Steps

The delay is expected to pass into law following formal approval from EU member states this week. The European Parliament’s decision ensures companies gain additional time to align supply chains while maintaining focus on reducing deforestation-driven emissions.

Follow ESG News on LinkedIn