The European Commission is set to propose a one-year delay to its landmark law aimed at tackling global deforestation, bowing to immense pressure from commodity-producing nations and industry stakeholders, Bloomberg reports.
This move signals a growing backlash against the EU’s ambitious environmental agenda.
The regulation, initially scheduled to take effect on December 30th, sought to curb the EU’s contribution to deforestation through its imports of commodities like coffee, cocoa, soy, and beef. However, the draft amendment, which requires approval from both the European Parliament and member states, proposes a postponement of the implementation by twelve months.
The EU’s proposal has faced fierce criticism from agricultural giants, including Brazil and Indonesia, who argue that the regulation unfairly burdens smallholder farmers and stifles key crop exports. However, the bloc has also encountered opposition from its own member states and industry groups, who warn of potential supply disruptions and inflationary pressures.
The law mandates complex tracking systems, requiring importers to gather detailed data to identify the origin of imported products. Companies are required to ensure that their imported goods were not produced on land deforested or degraded after 2020.
These stringent requirements have sparked concerns about compliance. Coffee traders rushed to stockpile beans before the initial deadline, while major roasters warned of increased costs for European consumers. A cocoa group in September declared the law headed towards “critical failure.”
The potential delay has already impacted commodity markets, with robusta coffee futures falling by 2% in London.
While the Commission spokesperson, Arianna Podesta, insists that “no decision has been taken,” the proposed delay signals a significant shift in the EU’s approach to tackling deforestation.
