Large agribusiness companies urge EU not to delay anti-deforestation law

Major agribusiness companies including Nestle, Ferrero and Olam Agri have warned that delays in the European Union’s anti-deforestation legislation are putting forests around the world at risk, Reuters reported.

The EU last month proposed a second delay to the launch of the law, citing concerns about the readiness of the information and technology systems needed to support its implementation. The delay could delay a ban on imports of products such as palm oil linked to deforestation by another year.

The law faces strong opposition from industry and EU trading partners such as the United States and Brazil. EU Commissioner Jessica Rosvall said last week that the delay was not due to U.S. concerns about the policy.

In a letter to Roswall, companies operating in the cocoa, dairy, rubber, timber and other agri-food sectors said that clear rules are essential for the EU’s competitiveness and that they are already investing and preparing to comply with the law “in good faith.”

“We remain on track to fully meet our EUDR commitments by December 31, 2025. The proposed delay jeopardizes the conservation of forests worldwide, accelerates the effects of climate change and undermines trust in Europe’s regulatory commitments,” the letter, dated October 2, said.

Contrary to the EU’s goal of simplifying rules for business, any changes at this stage would create uncertainty, anger shareholders and could lead to further weakening of the rules, the companies said.

Francesco Tramontin, vice president of institutional affairs at Ferrero, said greater transparency in supply chains was critical to managing risk.

The EU’s anti-deforestation law was due to come into force on 30 December and will require operators selling goods including soy, beef and palm oil to EU markets to provide evidence that their products have not caused deforestation.

Tags: EU, soybean, palm oil, legislation, restrictions