Deforestation Regulation: EU Extends Deadlines to Support Supply Chain Readiness

The European Union has approved a one-year extension for the implementation of its landmark deforestation regulation, giving large companies until December 30, 2025, to comply. Small and micro businesses will have until June 2026 to meet the requirements. Initially set for December 2024, the revised timeline responds to concerns raised by member states, traders, and businesses about the challenges of meeting the original deadlines.

The regulation aims to eliminate deforestation-linked products from the EU market. Companies will need to demonstrate that goods such as soy, beef, palm oil, coffee, and cocoa are sourced from supply chains free of deforestation. The European Commission will provide tools like a risk classification system and an information platform to assist businesses, both of which are expected to be ready by June 2025.

The delay ensures that affected businesses have additional time to adapt without undermining the regulation’s environmental objectives. “This extension ensures smoother implementation without compromising the law’s objectives,” stated an EU spokesperson. Christine Schneider, Parliament’s rapporteur for the regulation, emphasized that the extra time must be used effectively to prepare for the changes. “We have delivered on our promise to support businesses, farmers, and authorities while maintaining our commitment to forest conservation,” Schneider said.

The European Commission has also pledged to reduce administrative burdens for operators and streamline reporting requirements. A full review of the regulation’s impact is planned by June 2028, with a focus on simplifying measures for low-risk countries or regions.

This regulation is part of the EU’s broader strategy to combat global deforestation and meet climate targets. According to Global Witness, EU commodity imports contributed to 120 million metric tons of CO₂ emissions in 2021-2022 due to deforestation. By targeting supply chains, the EU aims to reduce this impact and drive global efforts to protect forests.

The law is expected to pass into effect following formal approval from EU member states later this week. Businesses are urged to leverage the extended timeline to align their supply chains with the regulation’s requirements and mitigate the environmental impact of their operations.