EU negotiators delay deforestation ban

The European Union’s new anti-deforestation rules will be postponed by one year, with no significant changes to the legislation’s content. This decision follows the European Commission’s proposal in October to delay the rules until December 30, 2025, in response to mounting pressure from both EU and non-EU countries, global business partners, and industry.

EU institutions reached a compromise on delaying the EU Deforestation Regulation (EUDR) by 12 months, with the new implementation date set as December 30, 2025 for large operators & traders, and mid-2026 for small enterprises. 

Originally set to kick off on December 30, 2024, the Regulation was formally adopted last year, and it is the first such regulation in the world. The regulation targets cattle, cocoa, coffee, palm oil, soya, and wood sold within the bloc. These six commodities accounted for over 50% of total deforestation from 2001-2015, with cattle accounting for the largest share. 

The core requirement of the EUDR is that all commodities sold within the EU must be “deforestation-free,” covering both legal and illegal deforestation. The regulation aims to ensure that EU consumers are not contributing to deforestation in regions like the Amazon and Southeast Asia. (The 27-country bloc imports products that are responsible for approximately 13-16% of global deforestation and the related emissions tied to international trade.)

In October, the European Commission proposed a 12-month delay until December 30, 2025, following complaints from 20 EU countries, various companies, and nations like Brazil, Colombia, Indonesia, and Malaysia. The proposal was supported by EU governments.

While EU governments and the Commission backed the delay, EU lawmakers had also sought to weaken the regulation by introducing a ‘no risk’ category, primarily benefiting EU member states by reducing compliance checks. However, this proposal was rejected, and the existing rules remain unchanged.

The European Commission has committed to evaluating whether requirements can be simplified for countries with sustainable forest management practices. Additionally, an “emergency brake” will be triggered if the online system for companies is not fully functional by the end of December 2025 or if country classifications are not released at least six months before the regulation takes effect.

The European People’s Party, the largest parliamentary group, welcomed the delay and the added safeguards, while the Greens group called the compromise a “partial but significant victory” for environmental protection. However, critics, including emerging market nations, such as Brazil and Indonesia, contend that the regulation is protectionist and could prevent many poor, small-scale farmers from accessing the EU market.