In a recent development, the European Union has decided to postpone the implementation of new regulations aimed at prohibiting the sale of products linked to extensive deforestation by one year. This decision comes in response to requests from various producer nations and domestic opposition within the 27-member bloc.

On Wednesday, officials confirmed that an agreement in principle was reached by representatives from EU member states, the European Parliament, and the Commission after prolonged negotiations over the extent to which the initial regulations might need to be eased. The original plan was to launch these rules this month.

The deforestation legislation aims to protect forests worldwide by allowing only sustainably-sourced forest-related products that do not contribute to forest degradation. This includes commodities such as cocoa, coffee, soy, cattle, palm oil, and rubber. Deforestation remains a significant contributor to carbon emissions, ranking second only to fossil fuels.

Christine Schneider, the lead negotiator among the EU institutions, described the deferral of the environmental protection measures as “a victory,” noting it would shield foresters and farmers from “excessive bureaucracy.”

Leaders from major exporting countries like Brazil, Indonesia, and the Ivory Coast expressed concerns that the proposed regulation could serve as a trade barrier, adversely impacting small-scale farmers and causing disruptions in supply chains.

As per the new agreement, the regulations are now set to be enforced starting December 30, 2025, for larger enterprises, and June 30, 2026, for smaller businesses. Future approval from individual EU institutions is required, although the consensus reached makes this step likely to be a mere formality.

In light of the decision to extend the deadline by a year, the EU Commission acknowledged the concerns raised by numerous global partners regarding their readiness for compliance with the new rules.

In addition, some EU nations, including Austria and Germany, have been pushing to dilute the regulations further or delay their rollout. Even though the current agreement did not accommodate these requests, Schneider indicated that the Commission is committed to revising the Deforestation Law within a year.

Environmental organization Greenpeace criticized the postponement, arguing that it would lead to yet another year of devastation for the world’s forests. They highlighted a U.N. report revealing that approximately the area of Portugal is deforested globally each year.