The European Union (EU) has voted to delay implementing its deforestation ban by one year, pushing the effective date to December 30, 2025. However, proposed amendments to ease the regulation were rejected during the negotiations.
This decision follows an October proposal by the European Commission to postpone the legislation due to concerns raised by EU and non-EU nations, global business partners, and industry leaders. Many stakeholders argued they were unprepared to meet the strict requirements of the new law.
Key Points of the Regulation
The EU Deforestation Regulation (EUDR), adopted last year, is the first global law targeting commodities linked to deforestation and forest degradation. It aims to eliminate deforestation from the supply chains of products like cattle, cocoa, coffee, palm oil, soya, and wood. These six commodities contributed to over 50% of global deforestation between 2001 and 2015, with cattle leading the statistics.
The law mandates that all products sold within the EU must be “deforestation-free,” regardless of whether deforestation was legal or illegal in the source country.
Criticism and Pushback
Several nations, including Brazil, Colombia, Indonesia, and Malaysia, have criticized the regulation. Brazil, for instance, called it a "punitive instrument" that unfairly targets economies reliant on forest resources. Brazilian officials estimate that the law could impact $15 billion worth of exports, with products covered by the law accounting for $46.2 billion in 2023.
Small-scale farmers, who own 25% of agricultural land globally and produce roughly 30% of crops, are particularly concerned about the financial and logistical burden of compliance. Critics have also highlighted challenges in tracing supply chains that span multiple countries.
European farmers have also voiced concerns, warning that the regulation could harm their livelihoods.
Adjustments and Clarifications
In response to the backlash, the European Commission issued guidance documents in October to clarify the law’s scope and provide practical support for businesses and enforcement authorities. These guidelines addressed legality requirements, timelines, and product scope.
Tuesday’s vote establishes new deadlines: large operators and traders must comply by December 30, 2025, while small enterprises have an additional six months. An "emergency break" mechanism will apply if the online system for compliance is not fully operational or if country classifications are not finalized six months before the law takes effect.
A Divisive Landmark
While the regulation has been hailed as a significant step in combating climate change and deforestation, critics argue it could exclude millions of small-scale farmers from accessing the EU market. The EU is responsible for importing products that contribute to an estimated 13-16% of global deforestation and related emissions.
Environmental groups such as Human Rights Watch and Greenpeace have warned that delaying the law will allow deforestation and associated human rights abuses to continue unchecked for at least another year.
Despite these concerns, proponents like Christine Schneider, a member of the European Parliament, welcomed the postponement, saying it gives businesses and farmers additional time to prepare for the transition.
The regulation remains a critical component of the EU’s efforts to address its role in global deforestation, with the goal of reducing its environmental impact while ensuring fair implementation across supply chains.
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