EU proposes delaying landmark Deforestation Law amid industry pressure

The European Commission has proposed a one-year delay to new regulations to combat global deforestation, following pressure from businesses and international partners. The decision has sparked criticism from environmental NGOs.

The European Deforestation Regulation (EUDR) was set to come into force at the end of this year, targeting products like cocoa, coffee, soy, palm oil, timber, rubber, and cattle. These commodities are linked to deforestation, and the regulation aims to restrict their entry into the EU market unless they meet sustainability standards.

Belgium is a key player in the cocoa industry and companies, such as Antwerp-based logistics firm Vollers, have lobbied for more time to prepare. Vollers, which handles large volumes of cocoa for multinational corporations, welcomed the postponement.

“We are very pleased,” said Anne Pauwels, general manager of Vollers in the Belgian port. The company handled 200 thousand tonnes of cocoa, mainly from West Africa, and more than 111 thousand tonnes of coffee in 2022 – 2023. Vollers, along with other intermediaries, is concerned about how the new certification and compliance processes will work once the regulation is in place.

“We need clarity on how shipments will enter Europe, the certification procedures, and who will provide the necessary information,” Pauwels added.

The cost of inaction

The EU has been criticised for its role in global deforestation, with estimates suggesting the bloc is responsible for deforesting over 2480 square km annually—an area nearly the size of Luxembourg. Michael Rice, an expert in sustainable supply chains at the NGO ClientEarth, notes that the EU is the second largest importer of products linked to deforestation, after China.

“This doesn’t mean the EU is directly cutting down forests,” Rice explained. “But a significant portion of the products we import are produced at the expense of the world’s forests.”

Environmental groups argue that the EUDR, which is the first global regulation to address deforestation so comprehensively, has the potential to significantly curb the destruction of forests.

Forests cover 30% of the Earth’s surface and are home to 80% of terrestrial biodiversity. They also play a crucial role in absorbing carbon dioxide and stabilising soil, which helps mitigate climate change and natural disasters.

A crucial delay

The European Commission’s proposal to delay the regulation must be approved by both the European Parliament and the Council of the EU, which represents the Member States. If passed, larger companies will have until 30 December 2025 to comply with the new rules, while small and medium-sized enterprises (SMEs) will have until 30 June 2026.

While businesses may welcome the postponement, environmentalists argue that any delay in addressing deforestation could have long-term consequences for the planet.