EU Looking to Postpone Upcoming Deforestation Due Diligence Rules

The European Commission is proposing to delay its upcoming deforestation reporting requirements by one year to allow member states and third-country exporters to be better prepared and “fully establish the necessary due diligence systems” for all products covered by the new rules. The law is scheduled to take effect for most companies Dec. 30 and for small companies June 30, but the commission is proposing to extend those dates to Dec. 30, 2025, and June 30, 2026, respectively.

The proposal comes less than a month after more than 70 members of the House of Representatives asked the Biden administration to urge the EU to delay the deforestation reporting requirements (see 2409260067), which will set mandatory due diligence rules for traders who import or export palm oil, beef, timber, coffee, cocoa, rubber and soy to or from the EU market (see 2407180047 and 2307270041).

The commission said it has heard both from companies and other countries that “more time is needed to prepare” for the rules. “Several global partners have repeatedly expressed concerns about their state of preparedness,” including during meetings at the U.N. General Assembly in New York last month, the commission said. “Moreover, the state of preparations amongst stakeholders in Europe is also uneven.”

A one-year postponement “is a balanced solution to support operators around the world in securing a smooth implementation from the start.”

The delay must be approved by the European Parliament and the European Council, which the commission said hopes will happen by the end of the year.

The EU also published new guidance to “provide additional clarity” to companies and member states about how the rules will apply, including updates on penalties and clarifications on “critical definitions” such as “forest degradation,” “operator” and "placing on the market.” Other guidance covers the “traceability obligations” of companies.