Published by Global Banking & Finance Review®
Posted on November 26, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe EU Parliament voted to delay the deforestation law by a year, affecting cocoa and palm oil imports. Critics argue this endangers forests.
BRUSSELS (Reuters) -The European Parliament on Wednesday voted in favour of delaying the implementation of the European Union's deforestation law by one year.
Companies will have an additional year to comply with new EU rules to prevent deforestation, the European Parliament said in a statement.
Large operators and traders must respect the obligations of this regulation as of December 30, 2026, and micro and small enterprises from June 30, 2027.
The ban on imports of cocoa, palm oil and other commodities linked to forest destruction is a key pillar in the EU's green agenda.
The world-first policy aims to end the 10% of global deforestation fuelled by EU consumption of imported soy, beef, palm oil and other products, but has become a politically contested part of Europe's green agenda.
But it faces pushback from some industries and countries that say the measures are costly and logistically challenging.
Critics have previously warned of environmental setbacks.
Food majors such as Nestle, Ferrero and Olam Agri back the law. They warned last month that delaying it endangers forests worldwide and is contrary to the EU's aim of simplifying business rules.
Advocacy group Business For Nature called the delay "a profound failure of political courage".
(Reporting by Charlotte Van Campenhout, editing by Bart Meijer and Ed Osmond)
Deforestation is the clearing or thinning of forests by humans, often resulting in damage to the quality of the land. It is a significant environmental issue that contributes to climate change and loss of biodiversity.
The European Union's deforestation law aims to prevent the import of commodities linked to deforestation, such as cocoa and palm oil, by requiring companies to comply with specific regulations to protect forests.
Micro and small enterprises are businesses that typically have a limited number of employees and lower revenue thresholds. They play a crucial role in the economy by providing jobs and fostering innovation.
Compliance in business refers to the processes and practices that ensure a company adheres to legal standards, regulations, and internal policies. This is essential for maintaining ethical operations and avoiding legal penalties.
The EU's green agenda encompasses policies aimed at promoting sustainability and environmental protection. It includes initiatives to reduce carbon emissions, protect biodiversity, and transition to renewable energy sources.
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