Czech Business Today
EU Deforestation Rules Postponed
The European Union has granted businesses an additional year to comply with its landmark deforestation regulation, offering much-needed relief as companies navigate the complex requirements of the new rules. Initially set for enforcement in December 2024, the regulation’s application date has been pushed to December 2025 for large operators, while small and micro-enterprises now have until June 2026 to align their practices. The delay was confirmed through a provisional agreement between the Council and the European Parliament, which still requires formal adoption.
The deforestation regulation, in force since June 2023, aims to minimize the EU’s contribution to global deforestation by banning the sale of products linked to deforested land. Commodities such as coffee, cocoa, soy, palm oil, and wood are at the centre of the policy, requiring operators to ensure these products are deforestation-free before entering the EU market. Although the postponement does not alter the substance of the rules, it provides critical time for businesses to adapt their supply chains, implement due diligence systems, and embrace sustainable sourcing practices. For Czech companies, the extension is a strategic opportunity.
The EU’s forthcoming Information System and risk classification tools, expected six months before the new enforcement date, will be vital for compliance. By proactively aligning their operations now, businesses can reduce the risk of non-compliance and potential exclusion from the EU market. The extra year also allows companies to streamline their reporting mechanisms, identify sustainable suppliers, and build transparency across their value chains—steps that will not only meet regulatory requirements but also enhance their competitiveness in an increasingly environmentally conscious marketplace.
Despite the reprieve, the urgency to prepare remains. The regulation’s delay highlights the challenges of implementing such a comprehensive policy but underscores the EU’s commitment to combating deforestation and promoting global environmental responsibility. Companies failing to act now risk being left behind, as the regulation represents a broader shift in market expectations and consumer demand for sustainable products. As the Council and European Parliament move toward formalizing the postponement, businesses should view this delay not as an invitation to relax but as a chance to double down on preparations.
