Nestle, others warn EU law delays are endangering forests worldwide

LONDON — Major agri-food companies including Nestle, Ferrero and Olam Agri have warned that European Union delays to its anti-deforestation law are endangering forests worldwide.

The EU last month proposed delaying the launch of its anti-deforestation law for a second time, citing concerns about the readiness of information-technology systems needed to support the law.

The delay could postpone the ban on imports of commodities such as palm oil linked to forest destruction for another year.

The law faces major opposition from industry and EU trade partners such as the United States and Brazil. EU Commissioner Jessika Roswall said last week the delay was not linked to U.S. concerns about the policy.

In a letter to Roswall — a copy of which was sent to Reuters - the companies, which operate in the cocoa, dairy, rubber, wood and other agri-food sectors, said that clear rules were essential for EU competitiveness and that they had already been investing in and preparing to comply “in good faith.”

“We remain on track to achieve full compliance with the EUDR obligations by 31 December 2025,” the letter dated Oct. 2 said. “The proposed delay puts at risk the preservation of forests worldwide, will accelerate climate change impacts, and undermines trust in Europe’s regulatory commitments.”

Contrary to the EU’s aim of simplifying rules for business, any changes at this stage would introduce uncertainty, annoy shareholders and risk the rules being watered down further, the companies said.

Francesco Tramontin, vice president, institutional affairs at Ferrero Group, said that having greater transparency over supply chains is essential for managing risks.

The EU deforestation law was due to take effect on December 30, and will require operators selling goods including soy, beef and palm oil into EU markets to provide proof their products did not cause deforestation.