EU Delays Deforestation Law Impacting Global Trade

The European Union has postponed the implementation of its deforestation law by one year, responding to pressure from member states and exporters like Brazil. Initially set to begin in December 2023, the law mandates supply chain transparency for certain imports. Voting by the European Parliament is still pending.

The European Union has decided to delay the enforcement of its pivotal deforestation law by a full year, now slated for the end of December next year. Following intense lobbying from certain member states and sizable agricultural exporters including Brazil and Malaysia, the Commission submitted this proposal for a delay earlier this month.

The original agreement, reached in June 2023, was due for implementation on December 30 of this year. Deforestation ranks as the second-highest contributor to greenhouse gas emissions, trailing only behind fossil fuel combustion, according to the European Commission.

The legislation, known as EUDR, mandates that importers of products like beef, coffee, palm oil, and timber must confirm their supply chains do not contribute to forest destruction, or else face significant penalties. The law considers products from land not deforested after December 31, 2020, as deforestation-free. Larger enterprises must comply by December 2025, while smaller entities have until June 2026. The European Parliament still has to cast its vote on the proposed postponement.

(With inputs from agencies.)