Deforestation law: agreement with Council gives companies extra year to comply
Companies will have one more year to adapt to new EU rules to prevent deforestation, which will ban the sale of products sourced from deforested land in the EU.
Negotiators from the Parliament and Council reached a provisional political agreement to postpone the application of the new rules. Large operators and traders will now have to respect the obligations of this regulation as of 30 December 2025, and micro- and small enterprises from 30 June 2026. This additional time is intended to help companies around the world implement the rules more smoothly from the beginning, without undermining the objectives of the law.
The Commission proposed postponing the application date of the deforestation regulation by one year in response to concerns raised by EU member states, non-EU countries, traders and operators that they would not be able to fully comply with the rules if applied from the end of 2024.
Following requests from Parliament, the Commission committed to ensure that both the Information System and proposal for the risk classification are available as soon as possible but not later than six months before the Regulation enters into application. In the context of the general review of the Regulation expected no later than 30 June 2028, the Commission will analyse additional measures to simplify and reduce administrative burden.
Next steps
The vote on the informal agreement between the co-legislators will be added to the agenda of Parliament’s next plenary session (16-19 December). In order for the postponement to enter into force, the agreed text has to be endorsed by both Parliament and Council and published in the EU Official Journal before the end of the year.
Background
The UN Food and Agriculture Organization (FAO) estimates that 420 million hectares of forest — an area larger than the EU — were lost to deforestation between 1990 and 2020. EU consumption represents around 10% of global deforestation. Palm oil and soya account for more than two-thirds of this.
The deforestation regulation, adopted by Parliament on 19 April 2023, aims to fight climate change and biodiversity loss by preventing the deforestation related to EU consumption of products from cattle, cocoa, coffee, palm-oil, soya, wood, rubber, charcoal and printed paper. Already in force since 29 June 2023, its provisions were to be applied by companies from 30 December 2024.