EU Countries Approve Year-long Delay To Deforestation Law

European Union (EU) countries on Thursday approved a deal to delay the anti-deforestation law by a year following pushback from industry and concerns the digital system to enforce it was not ready, the Council of the EU said, clearing the final legal hurdle for the delay to pass into law.

The world-first policy would ban imports into the EU of cocoa, palm oil and other commodities linked to forest destruction, requiring foreign exporters of these commodities to provide due diligence statements proving their products did not contribute to forest destruction.

Originally due to apply from December 2024, the law was designed as a key plank of the EU's green agenda. Brussels had already delayed it by a year, but that did not quell opposition from industry and trade partners including Brazil, Indonesia and the US, which said complying with the rules would be costly and hurt their exports to Europe.

Under the amended EU law, large companies will now have to comply from December 30, 2026, followed by smaller firms with a turnover of less than €10 million (RM47.88 million) in the products affected, from June 30, 2027.

The EU proposed delaying the law for a second time in September, citing concerns about the readiness of information-technology systems needed to support it.

Food majors such as Nestle, Ferrero and Olam Agri had warned that further delays to the law endangered forests worldwide. The policy aims to end the 10% of global deforestation fuelled by EU consumption of imported goods.

Source: Theedgemarkets