EU envoys agree implementation delay of deforestation law

BRUSSELS (Reuters) - European Union ambassadors agreed on Wednesday to delay implementation of the bloc's landmark deforestation law by a year till the end of December next year, they said in a statement.

The Commission proposed the delay this month after coming under intense pressure from some member states and major agricultural product exporters such as Brazil and Malaysia.

The law had been agreed in June 2023 with the application to start on Dec. 30 this year.

Deforestation is the second largest source of the greenhouse gas emissions that cause climate change after the burning of fossil fuels, the European Commission says.

The law, know as EUDR, would have required companies importing products including beef, coffee, palm oil and timber to prove their supply chains did not contribute to the destruction of the world's forests, or face hefty fines.

Products produced on land that was not deforested or degraded after Dec. 31, 2020, are considered to be deforestation-free.

Large operators and traders will now have to comply by Dec. 30, 2025, while smaller and mid-sized firms will have until June 30, 2026.

The European Parliament still needs to vote on the delay.

(Reporting by Julia Payne; Editing by Gareth Jones)