Finance
EU countries seek more cuts to deforestation rules, letter shows
Published by Global Banking & Finance Review®
Posted on July 7, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 7, 2025
2 min readLast updated: January 23, 2026
EU countries push for changes to the anti-deforestation law, citing competitive disadvantages. They request exemptions for low-risk nations and a potential delay in implementation.
By Kate Abnett and Julia Payne
BRUSSELS (Reuters) -Most European Union countries have demanded further changes to the bloc's anti-deforestation law, saying some of its producers cannot be expected to meet its terms and face a competitive disadvantage, a letter seen by Reuters showed.
From December, the deforestation law, a world first, will require operators placing goods including soy, beef and palm oil, onto the EU market to provide proof their products did not cause deforestation.
Felling CO2-storing forests is a major cause of climate change. But despite worsening extreme weather, political will to impose strict emissions-cutting policies has ebbed, as governments worry about the financial costs.
Brussels has already delayed its launch by a year and cut back reporting rules following criticism from trading partners, including the United States, as well as from EU countries.
Of the EU's 27 member countries, agriculture ministers from 18 wrote to the Commission on Monday, demanding the EU rules are not applied to countries deemed to have a low risk of deforestation. They should stick to national measures instead, they said.
"Excessive and redundant due diligence requirements should be removed in countries where agricultural expansion is not significantly reducing the forest area," the letter said.
It was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
The deforestation law also applies to EU exports, prompting the 18 countries to voice concern that European producers would relocate abroad to avoid the additional cost of complying with the rules.
"The full traceability within the EU-market required for all commodities by the regulation will be extremely difficult, if not impossible for some of them," the letter added.
The countries said Brussels should consider delaying the launch of the policy again, while it drafts proposals to simplify the rules further.
A Commission spokesperson did not immediately respond to a request for comment.
The EU policy aims to end the 10% of global deforestation linked to EU consumption of imported goods.
(Reporting by Kate Abnett; editing by Barbara Lewis)
Most EU countries are demanding further changes to the anti-deforestation law, arguing that some producers cannot meet its terms and face competitive disadvantages.
Starting in December, the law will require operators placing goods like soy, beef, and palm oil onto the EU market to provide proof that their products did not cause deforestation.
The letter was signed by Austria, Bulgaria, Croatia, the Czech Republic, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Poland, Portugal, Romania, Slovakia, Slovenia, and Sweden.
The countries expressed concern that the full traceability required by the regulation will be extremely difficult, if not impossible, for some commodities.
The policy aims to end the 10% of global deforestation linked to EU consumption of imported goods.
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