EU Parliament grants 1-year compliance extension on Deforestation Law

With 371 votes in favour, 240 against, and 30 abstentions, Parliament endorsed the postponement. Large companies and traders will now have until December 30, 2025, to comply, while micro- and small enterprises have until June 30, 2026. This adjustment aims to allow global operators to implement the rules effectively without compromising the regulation's environmental objectives.

In addition to the extension, Parliament approved amendments, including the creation of a ‘no risk’ country category. This classification, for nations with stable or increasing forest areas, will face fewer compliance requirements compared to the existing ‘low’, ‘standard’, and ‘high’ risk categories. The European Commission has been tasked with finalising a benchmarking system for country classification by June 30, 2025.

The proposal will return to the committee stage for interinstitutional negotiations. To take effect, the revised regulation must be endorsed by both the European Council and Parliament and then published in the EU Official Journal.

The regulation, adopted on April 19, 2023, is a cornerstone of the EU’s efforts to combat climate change and biodiversity loss. Originally set to apply from December 30, 2024, the law’s implementation date has been pushed back to address feasibility concerns raised by stakeholders.

Fibre2Fashion News Desk (KD)