The European Parliament voted on December 17 to postpone the entry into force of a groundbreaking EU regulation aimed at combating deforestation by one year. Companies will have until December 30, 2026, to prove that the cocoa and other commodities they import do not contribute to forest destruction. This decision was approved by a vote of 405 to 242 with eight abstentions and represents the second delay of this legislative act, which environmental organizations had expected to significantly reduce tropical forest clearance The European Parliament voted on December 17 to postpone the entry into force of a groundbreaking EU regulation aimed at combating deforestation by one year[1].
European Parliament votes to postpone regulation enforcement
The European Council formalized this decision on December 18, removing the final legal obstacle before the regulation’s publication in the Official Journal of the EU. Small and micro enterprises were granted an additional six months to comply with the rules, with the new deadline set for June 30, 2027. The delay triggered an immediate reaction in cocoa markets, which had already priced in stricter compliance requirements. On December 19, the Intercontinental Exchange cocoa futures contracts traded around 6050 dollars per metric ton, marking a 17% rise over the last month due to forecasts of supply constraints The European Council formalized this decision on December 18[2].
European Council formalizes the delay
Ivory Coast and Ghana, responsible for over 60% of the world’s cocoa production, face serious challenges in meeting traceability requirements. Estimates suggest that the necessary compliance infrastructure could increase global cocoa costs by approximately 4%, with some exporters warning that costs of around 200 CFA francs per kilogram may be too high for smaller cooperatives. The regulation requires, among other things, geolocation data for every plot of land and proof that the cocoa was not sourced from deforested areas after December 31, 2020 Estimates suggest that the necessary compliance infrastructure could increase global cocoa costs by approximately 4%[4].
Challenges for cocoa-producing countries
Despite the deadline extension, the European Commission is required to present a simplified review of the regulations by April 2026, introducing uncertainty for companies investing in compliance systems. Rainforest Alliance criticized the delay, calling it a betrayal of producers who have already invested significant resources in preparation. Conversely, the European Cocoa Association and chocolate manufacturers welcomed the extra time, stating it will allow completion of IT systems supporting due diligence declarations. However, a coalition of companies including Nestlé, Danone, and Mars Wrigley opposed further postponements, arguing that continual changes punish companies acting proactively The European Commission is required to present a simplified review of the regulations by April 2026__CITEND__[[7: Rainforest Alliance criticized the delay, calling it a betrayal of producers__CITEND__[[11: The European Cocoa Association and chocolate manufacturers welcomed the extra time[6].
Impact on compliance costs and market reaction
Environmental organizations calculated that postponing the regulation’s implementation could cause the annual loss of at least 72,000 hectares of forest and delay the prevention of 32 million metric tons of carbon dioxide emissions. Client. Earth described the vote as the result of an agreement between right-wing and far-right political groups that weakens forest protection. The regulation covers seven key commodities.