EU Deforestation Compliance Requirements Delayed Until End of 2026
The European Parliament has approved an additional one-year postponement of the EU's deforestation regulations, extending compliance deadlines to late 2026 and early 2027. This marks the second delay of rules designed to prevent forest destruction in global supply chains.
Extended Timeline Approved
Members of the European Parliament voted overwhelmingly on November 26 to revise the implementation schedule for the Regulation on Deforestation-free Products. The decision, which passed with 402 votes in favor and 250 against, establishes December 30, 2026, as the new deadline for large businesses, while micro and small enterprises will have until June 30, 2027.
The regulation targets key commodities including coffee, cocoa, soy, palm oil, and timber, requiring businesses to verify that these products are not sourced from areas deforested since December 2020. Originally scheduled for December 2024 implementation, the law has now been deferred twice.
Technical Readiness Concerns Drive Decision
The postponement reflects widespread concerns about preparedness across industry and government sectors. Many stakeholders report they are not adequately equipped to operate the new geolocation-based tracking systems and the EU's centralized information technology platform for due diligence documentation.
Proponents of the extension maintain that additional preparation time will help prevent supply chain disruptions and enable authorities to properly test systems before mandatory enforcement begins.
Political Divisions on Display
The vote revealed significant political fractures within the Parliament. The centre-right European People's Party led support for the delay, joined by conservative, far-right, and some centrist factions. Opposition came from Socialist, Green, and Left groups, who characterized the postponement as a retreat from environmental commitments central to the EU's Green Deal agenda.
Simplified Compliance Framework
Beyond the timeline adjustment, Parliament endorsed modifications to how due diligence responsibilities are allocated across supply chains. The revised approach assigns primary responsibility to the first operator placing products into EU markets, eliminating redundant filing requirements for downstream traders.
Micro and small businesses that initially introduce covered products will need to submit only a single simplified declaration, reducing their administrative workload.
Mandatory Review Before Implementation
Legislators mandated a comprehensive simplification assessment by April 30, 2026—before full enforcement commences. This review will examine administrative burdens, particularly for smaller companies, and may trigger additional legislative adjustments.
Environmental Groups Express Disappointment
Conservation organizations condemned the vote as a weakening of EU environmental policy. Advocacy groups argued that repeated attempts to modify the regulation demonstrate declining political commitment to addressing deforestation linked to European consumption. They cautioned that continued delays could disadvantage companies that invested early in compliance and diminish the law's effectiveness as a deterrent.
Industry and Producer Nations Welcome Extra Time
Business associations and governments from producing countries have advocated for extended deadlines and reduced reporting obligations. They contend that the original requirements risked excluding smallholder farmers from European markets due to compliance complexity and cost.
The European Commission has acknowledged infrastructure challenges and the need to prevent overwhelming national enforcement agencies as justification for targeted simplification measures.
Broader Policy Context
This decision follows Parliament's recent approval of significant revisions to corporate sustainability reporting and due diligence frameworks, also driven by centre-right and conservative majorities. These votes are part of a broader initiative to reduce regulatory compliance costs, raising questions about the trajectory of EU climate and human rights legislation.
Next Steps in Legislative Process
Parliament must now negotiate final provisions with the Council based on the positions adopted by both institutions. Member states endorsed their position on November 19, supporting a uniform one-year extension for all operators plus an additional six-month buffer for micro and small businesses.
EU institutions aim to finalize negotiations and publish the amended regulation before the end of 2025. Until the revision officially takes effect, the current legal deadlines—December 30, 2025, for large companies and June 30, 2026, for smaller operators—remain valid. However, with both legislative bodies supporting postponement, implementation is effectively expected to shift to late 2026, creating ongoing uncertainty for businesses and producing nations preparing for the new requirements.
