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Fashion sector gets extra year to prepare for EU deforestation law

The European Commission has proposed to delay the implementation of its deforestation regulation giving fashion companies longer to comply with rules that aim to ensure all products sold in the EU are not linked to deforestation. 

Jangoulun Singsit November 18 2024

This decision comes in response to concerns from EU member states, non-EU nations, traders, and operators about the feasibility of meeting the original compliance deadline of 30 December 2024. 

The EU Parliament adopted the proposal through an urgency procedure, with a vote tally of 371 in favour, 240 against, and 30 abstentions. 

Under the revised timeline, large operators and traders will now have until 30 December 2025 to meet the new requirements, while micro and small enterprises will have until 30 June 2026. 

This extension is intended to give operators worldwide additional time to implement the necessary changes without compromising the regulation's objectives. 

Amendment and next steps

The EU Parliament has adopted amendments, including the introduction of a new category of countries classified as posing "no risk" of deforestation. This classification will accompany existing categories of "low," "standard," and "high" risk countries.  

Nations with stable or increasing forest areas are deemed "no risk" and will face less stringent requirements, as they pose little to no risk of contributing to global deforestation. The European Commission is tasked with finalising a benchmarking system for these classifications by 30 June 2025. 

The revised text will now return to committee for further negotiations before being reviewed and endorsed by both the European Council and EU Parliament. Once approved, it will be published in the EU Official Journal and become law. 

Why the deforestation law is necessary

According to estimates from the UN Food and Agriculture Organization (FAO), approximately 420m hectares of forest, an area larger than the EU, were lost due to deforestation between 1990 and 2020.  

EU consumption accounts for about 10% of global deforestation. 

The deforestation regulation was initially adopted by the EU Parliament on 19 April 2023, aiming to combat climate change and biodiversity loss by curbing deforestation linked to the EU's consumption of various products including coffee, cattle, cocoa, wood, palm oil, soya, rubber, charcoal, and printed paper.  

Although the regulation has been in force since 29 June 2023, its provisions were set to be implemented by companies starting 30 December 2024. 

Reactions to the proposed delay

The proposed delay to the EUDR prompted mixed reactions from the industry, NGOs and markets around the globe. 

Human Rights Watch commented that the “delay would enable at least one more year of deforestation and human rights violations” while disregarding “efforts by many companies and EU trading partners who deployed resources to comply with the EUDR on time”. 

World Wide Fund For Nature European Policy Office forests policy manager Anke Schulmeister-Oldenhove said: “This is a shameful moment for the EPP, and a betrayal of its commitments to European citizens, forward-looking businesses, the world’s forests, and our climate. Just last year, the EPP overwhelmingly supported the EUDR - led by a rapporteur from their own ranks. Today, they aligned with extreme right-wing factions, putting political posturing over climate action, opening the gates for deregulation whilst casting aside pleas of European citizens and responsible companies to protect our forests.” 

Greenpeace EU forest policy director Sébastien Risso said: “More than a million EU citizens demanded a strong law to protect forests, and in 2022 they got it. So it is absolutely shameful that now, almost two years later, the European People’s Party has abandoned its previous support for this urgently-needed law in light of the climate emergency, and has teamed up with parties of the populist and extreme right to drastically weaken the EU deforestation regulation.” 

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