EnvironmentDeforestation Law

Parliament extends deadline for compliance to 30 December 2025

European Union has granted businesses an additional year, until 30 December 2025, to comply with the EU Deforestation Regulation. This extension allows third countries, Member States, market participants, and traders more time to prepare for fulfilling their due diligence obligations. The regulation aims to ensure that certain raw materials and products sold within or exported from the EU are "deforestation-free." This includes beef, timber, cocoa, soy, palm oil, coffee, and rubber, along with various derived products.

No additional changes to the regulation were introduced. A previously proposed “zero-risk category” for certain countries did not gain majority support during the final negotiations between the European Parliament and the Council.

Concerns raised by Member States and stakeholders regarding timely implementation have led to the decision that large market participants must comply with the regulation by 30 December 2025, while small businesses (criteria for small businesses: total assets: maximum EUR 4,000,000; net sales revenue: maximum EUR 8,000,000; maximum 50 employees) have until 30 June 2026. In return, the European Commission has committed to delivering the information system and risk classification proposal by 30 June 2025, at the latest. A comprehensive review of the regulation is planned by 30 June 2028, with a view to identifying further simplifications that may reduce administrative burdens for businesses. This delay is intended to enable companies worldwide to implement the regulations more smoothly and with greater legal certainty.

Following approval by the European Parliament on 17 December and the EU Council on 18 December 2024 the revised regulation will be published in the Official Journal of the EU in the coming days to ensure it enters into force before the end of the year. The new provisions will now apply from 30 December 2025, instead of the originally planned date of 30 December 2024.

The CEO welcomes this decision as a pragmatic step that allows for more realistic implementation timelines and better planning for businesses across supply chains.