EU Deforestation Law: Council Extends Application Timeline by 12 Months

| Image Credits: "Palm oil mill" by Marufish

The European Council has agreed to a targeted amendment of the EU deforestation regulation, postponing the date of application by 12 months. This extension aims to provide additional time for third countries, EU member states, operators, and traders to fully prepare for their due diligence obligations under the regulation.

MORE TIME FOR COMPLIANCE

The deforestation regulation, which has been in force since 29 June 2023, was originally set to be applied starting on 30 December 2024. However, the Council has agreed to the European Commission’s proposal to delay the application of the regulation by one year. This means that the obligations stemming from the regulation will now be binding from:

• 30 December 2025 for large operators and traders.

• 30 June 2026 for micro- and small enterprises.

This extension is designed to provide legal certainty, predictability, and sufficient time to establish effective due diligence systems. These systems will help identify deforestation risks in supply chains and include measures for monitoring and reporting compliance with EU deforestation-free rules.

MAINTAINING THE DEFORESTATION-FREE OBJECTIVE

The targeted amendment will not alter the core goal of the regulation: to minimize the EU's contribution to deforestation and forest degradation worldwide. The regulation will still require that products placed on or exported from the EU market are deforestation-free. This means the products must be produced on land that has not been subject to deforestation or forest degradation after 31 December 2020.

COMMODITIES COVERED BY THE REGULATION

The regulation applies to several key commodities and products, including:

• Cattle
• Wood
• Cocoa
• Soy
• Palm oil
• Coffee
• Rubber
• Derived products from these commodities

NEXT STEPS

The Council will now present its position to the European Parliament for consideration. The goal is for the regulation to be formally adopted by both co-legislators and published in the Official Journal of the EU, allowing it to enter into force by the end of the year.

BACKGROUND

Global deforestation and forest degradation are primarily driven by agricultural expansion, which is linked to the production of commodities covered by the regulation. As a major consumer of these commodities, the EU aims to reduce its impact on global deforestation by ensuring that products placed on or exported from its market are produced without contributing to deforestation.

The deforestation regulation, adopted in 2023, sets rules to ensure that certain commodities meet deforestation-free standards. These standards include compliance with the production country’s laws and a due diligence statement proving the products do not contribute to deforestation or forest degradation.

In response to concerns from member states, third countries, and industry stakeholders about the readiness to comply by the original deadline, the European Commission proposed this postponement to allow more time for smooth implementation.

SOURCE/RECOMMENDED READ: 

• EU deforestation law: Council agrees to extend application timeline - Consilium (europa.eu)