The European Commission will propose a delay of its landmark law to tackle deforestation globally, submitting to immense pressure from commodity-producing countries and industry.
The move is the latest sign of backlash over the reach of its environmental program. The bloc has put forward a draft amendment to postpone by 12 months the rules that aim to curb the portion of deforestation the European Union is responsible for through its imports of key commodities, like coffee, cocoa, soy and beef, according to people familiar with the matter.
The EU Deforestation Regulation (EUDR) was slated to take effect Dec 30. The delay will now need the sign-off of both the European Parliament and 27 member states.
European Commission spokesperson Arianna Podesta told reporters Wednesday that “no decision has been taken”.
Global agricultural heavyweights from Brazil to Indonesia have fiercely criticised the EU’s plans over concerns that the regulation will unfairly penalise smallholder farmers and curb exports of key crops. But the bloc has more recently faced complaints from its own member states and numerous industry groups have warned of impending supply disruptions and inflation.
The rules necessitate complex tracking systems, with importers required to collect precise data to identify the plots of land where the goods were grown. Companies must ensure the products they bring in weren’t made on areas deforested or degraded after 2020.
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Worries over compliance sparked coffee traders to stock up on beans ahead of the deadline and a major roaster warned European consumers would pay more as the regulation kicked in. A cocoa group in September said the law was headed toward “critical failure”.
Robusta coffee futures fell about 2% in London.
