EU deforestation law: Council agrees to extend application timeline
Today, the Council agreed on its position on the targeted amendment of the EU deforestation regulation, postponing its date of application by 12 months.
This postponement will allow third countries, member states, operators and traders to be fully prepared in their due diligence obligations, which is to ensure that certain commodities and products sold in the EU or exported from the EU are deforestation-free. This includes products made from cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
More time given to better prepare for implementation
The deforestation regulation has already been in force since 29 June 2023 and its provisions are to be applied from 30 December 2024. The Council agreed to the Commission’s proposal to postpone the application date of the regulation by one year, due to the lack of the key elements of the regulation, such as guidance documents to help companies and countries better apply the rules.
Therefore, if agreed by the European Parliament, the obligations stemming from this regulation will be binding from:
- 30 December 2025, for large operators and traders
- 30 June 2026, for micro- and small enterprises
This would give legal certainty, predictability and sufficient time for a smooth and effective implementation of the rules, including fully establishing due diligence systems covering all relevant commodities and products. These due diligence systems include identifying deforestation risks in supply chains as well as monitoring and reporting measures to prove compliance with EU rules.
Keeping the deforestation-free objective
The targeted amendment will not affect the substance of the already existing rules, which is to minimise the EU’s contribution to deforestation and forest degradation worldwide, by only allowing placing on the EU market, or exporting from the EU, deforestation-free products. Deforestation-free products are products that have been produced on land not subject to deforestation or forest degradation after 31 December 2020.
Next steps
The Council will now inform the European Parliament of its position in view of the Parliament taking a decision on its position. The aim is to have the regulation formally adopted by both co-legislators and published in the Official Journal of the EU so that it can enter into force by the end of the year.
Background
The main driver of global deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of the commodities included in the scope of the regulation. As the EU is a major consumer of such commodities, it can reduce its contribution to global deforestation and forest degradation by making sure these products and related supply chains are ‘deforestation-free’.
The deforestation regulation was adopted in 2023 and establishes rules to ensure that products derived from certain commodities (namely coffee, cocoa, palm oil, soya, cattle, rubber and wood), which are placed on the EU market or exported from the EU, have not caused deforestation or forest degradation during their production, have been produced in accordance with the relevant legislation of the country of production and are covered by a due diligence statement.
The Commission submitted its proposal on postponing the application date of the deforestation regulation in response to concerns raised by member states, third countries, traders and operators that there was a risk that they would not be able to fully comply with the rules by 31 December 2024.
