EU Parliament Supports Delay of Anti-Deforestation Due Diligence Rules
The European Parliament this week voted 402-250 -- with eight abstentions -- in favor of delaying the bloc's deforestation reporting requirements for one year, which would give large companies until Dec. 30, 2026, to come into compliance and small companies until June 30, 2027.
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The rules -- which are expected to set mandatory due diligence requirements 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) -- were set to take effect for large companies by the end of the year, and Dec. 30, 2026, for small companies (see 2510220016).
Firms could have an additional year or longer to prepare if the delay is next approved by EU ministers. More time is meant to "guarantee a smooth transition and to allow the implementation of measures to strengthen" the EU's information technology system that companies will rely on to submit their due diligence statements, Parliament said in a press release. The European Commission earlier this year said IT issues could lead to the delay (see 2509260028).
Along with supporting a delay, Parliament also voted for what it called a "simplification" of the rules, which will place the due diligence reporting responsibility on the businesses who first introduce the product into the EU market, not the traders or companies that "subsequently commercialise it."
The EU Parliament and Council must reach an agreement on the final shape of the law, and publish the regulations in the Official Journal of the European Union, before the end of 2025, in order for the delay to take effect.