EU proposes deforestation law delay despite corporate opposition

After months of lobbying from countries including the US, the European Commission is proposing to delay the implementation of the EU Deforestation Regulation (EUDR) by one year – despite clear opposition from companies and their Chief Sustainability Officers.

If approved by the European Parliament and Council, the Commission’s proposal would make the law applicable on December 30, 2025 – instead of the same date in 2024 – for large companies, and June 30, 2026 for micro- and small enterprises. 

“Since all the implementation tools are technically ready, the extra 12 months can serve as a phasing-in period to ensure proper and effective implementation,” the Commission argues.

The announcement follows months of lobbying by countries including Brazil, Indonesia and Côte d’Ivoire, whose revenue depends on forest products, and who worried about the law’s impact on small farmers, supply chains and trade.

The US is also largely opposed to the law: in September, Congresspeople wrote a letter to President Joe Biden asking him to “appeal to the new EU government about the need for a delay of implementation of the EU Deforestation Regulation”. Arguing that US companies still lacked clarity on the new requirements, they were hoping for a two-year delay to “ensure that transatlantic trade disruptions are minimised”.

Vegetable oil and cocoa industry criticise EUDR delay

But the proposed delay has not been received well in Europe: EU vegetable oil and protein meal industry association FEDIOL published a letter this week “regretting” the potential postponement. 

“Companies in our sector have made high-risk investments to be able to be ready by the date of application. As a result of the likely postponement of the date of application, those companies will inevitably suffer losses in their investments,” wrote Nathalie Lecocq, FEDIOL’s Director General.

In another “very serious letter” to EU Commission President Ursula von der Leyen, Tony’s Chocolonely and other sustainability-focused companies including Patagonia, Oatly, Natura and Ecosia, called for the EU to uphold its 2030 Green Deal targets and to implement ambitious regulations to protect people and the planet.

“We won’t stand by while some try to delay or reopen legislation that supports this deal, like the European Deforestation Regulation (EUDR),” added the Dutch chocolate brand in a Linkedin post.

Tony’s Chocolonely was also part of another call from the cocoa industry not to reopen negotiations around EUDR this week – alongside Ferrero, Mars Wrigley, Mondelēz International and Nestlé.

“This would only serve to increase uncertainty and jeopardise the significant investments our member companies have made in preparing for its application,” they warned. 

EU Commission publishes new guidance on deforestation law

The delay remains to be approved by members of the European Parliament – which is now composed by a majority of right-wing and conservative parties after the June 2024 election – and Council, meaning continued uncertainty for companies.

“What a mess and terrible signal for the future of sustainable rule making,” commented Richard Gardiner, Head of EU Public Policy at the World Benchmarking Alliance.

Other sustainability leaders have found a silver lining in the EU Commission’s announcement, however: the publication of a long-awaited guidance document providing definitions for the production and commercialisation of ‘deforestation-free’ products.

CDP data published this year suggests that 64 companies have managed to eliminate deforestation from their supply chains – mostly for timber, palm oil, soy, cattle, cocoa and coffee products.

However, transparency remains too low. “These new data demonstrate that companies need to invest in effective monitoring and control systems to address deforestation and conversion associated with their operations and suppliers, however few are doing so,” said Leah Samberg, Lead Scientist at the Accountability Framework Initiative.