EU plans deforestation delay only for small businesses

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🗞️ Driving the news: The European Commission has proposed a delay in the implementation of its anti-deforestation regulation, but only for small and micro businesses that deal with covered commodities. The decision follows IT issues that could affect the rule's enforcement in December 2025
• The regulation, targeting commodities like palm oil, soy, and cocoa, aims to combat deforestation through stricter market rules
• The proposal is still subject to approval by EU countries at the Council and MEPs in the European Parliament

🔭 The context: The anti-deforestation regulation is part of the EU’s broader efforts to address environmental impacts and trade-related deforestation
• The delay for small businesses reflects challenges in adapting the new rules, especially for companies with fewer resources
• While the proposal focuses on small and micro businesses, larger companies could still face the 2025 deadline
• The delay stems from concerns about IT system readiness, with some of the key technology needed for compliance not yet in place

🌍 Why it matters for the planet: The regulation is a crucial part of the EU's strategy to reduce global deforestation driven by European imports
• Commodities linked to deforestation contribute significantly to environmental degradation, with deforestation accounting for around 10% of global greenhouse gas emissions
• Delaying the rule could affect the EU’s ability to meet climate and sustainability goals, though small businesses may need extra time to comply with the new standards

⏭️ What's next: The proposal for delay will be debated among EU countries and MEPs before becoming final
• The European Parliament could push for broader delays or further adjustments to the legislation.
• Industry stakeholders are likely to lobby for more time or flexibility in meeting the new rules, especially for smaller operators

💬 One quote: "Small and micro businesses should not bear the brunt of the EU's ambitious deforestation agenda, but they need the right tools and time to comply." – EU Environment Commissioner Jessika Roswall

📈 One stat: The regulation is expected to affect over 500,000 businesses across the EU, with small and micro enterprises comprising a significant share of those impacted

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