A historic decision marks a turning point in the fight against illegal deforestation. The European Council and the European Parliament reached a political agreement to stop the market entry of seven key products and their derivatives that drive forest loss. The goal is to ensure that items placed on the EU market no longer contribute to deforestation or forest degradation either within Europe or abroad, setting a clear path for responsible sourcing.
The seven focus products are palm oil, beef, soybeans, coffee, cocoa, timber, and rubber, along with derivatives such as beef dishes, furniture, or chocolate. Under the new rules, no product can be sold in the European Union unless it can be proven to be obtained without deforestation.
When the regulation takes full effect, all companies entering the EU market or exporting these essential goods will face strict due diligence requirements. The European Parliament and the European Commission have stated that this will apply to products considered critical to global deforestation. The measure was chosen after a thorough impact assessment identified these items as primary drivers of forest loss, driven by agricultural expansion. The Community Executive affirmed support for this concrete step toward environmental accountability.
Brussels expects that the rule will curb a substantial share of deforestation and forest degradation worldwide. In addition, the regulation is designed to reduce greenhouse gas emissions and biodiversity losses associated with forest clearance.
The new regime imposes mandatory due diligence standards for companies seeking to supply or export the listed goods to the EU. Operators and traders must demonstrate that their products are deforestation-free, meaning they originate from land that has not been deforested after December 31, 2020, and that the production complies with all applicable laws in the country of manufacture.
Businesses will also be required to collect accurate geographic information about where the farmland is located to verify the conformity of the goods. Member States must ensure that non-compliance results in effective and dissuasive sanctions.
Periodic review of the list of goods and products
The catalogue of covered goods will be regularly reviewed and updated in light of new data, including shifts in deforestation patterns. Likewise, the European Commission will implement a benchmarking system to gauge the deforestation and forest degradation risk levels of producer countries, ranging from high to low, taking into account agricultural expansion for the seven key products and their derivatives.
The aim is to push ongoing improvements in supply chains. Companies’ liabilities will depend on assessed risk, guiding EU cooperation with partner countries to halt deforestation and to protect the livelihoods of local communities and indigenous peoples who depend on forest ecosystems around the world.
On the international stage, the EU plans to intensify engagement with producer and consumer countries and participate in multilateral discussions to ensure effective implementation of the new law and to assist producing nations where necessary. The regulation is designed not only to curb emissions and biodiversity loss but also to support the livelihoods of millions of people who depend on forests for their daily lives.
The regulation will come into effect with an 18-month implementation window. Micro and small businesses will benefit from an extended compliance period and other supportive provisions to ease the transition.
Biodiversity Conference kicks off in Canada
The agreement coincides with the Biodiversity Conference in Canada, opening this week to set nature conservation targets for the coming years. Key themes include addressing both legal and illegal deforestation, establishing strict traceability that links goods to their farm of origin, and implementing a country benchmarking system to monitor progress.
According to the United Nations Food and Agriculture Organization, between 1990 and 2020 roughly 420 million hectares of forest were lost to deforestation, an area larger than the European Union. The net loss over the same period is estimated at about 178 million hectares of forest cover, a region three times the size of France. These numbers underscore the urgent need for robust, verifiable supply-chain controls.
In response to these concerns, the latest measures aim to strengthen accountability across the supply chain and support sustainable forest management globally. The bid for stronger governance reflects a broader commitment to protecting biodiversity and ensuring that forest-dependent communities can thrive in a changing world.