It is reported that the European Union will propose a six-month grace period for companies to comply with the Anti-Deforestation Law

Bloomberg reported that the European Union plans to propose a six-month grace period for companies to comply with its landmark Anti-Deforestation Law, despite ongoing complaints from the industry, the EU has rejected a longer extension.

The report cites informed sources revealing that the European Commission will propose on Tuesday (21st) to grant companies a six-month exemption period after the law takes effect at the end of the year. This marks a reversal from last month's announcement to delay the implementation of the rules by one year.

Additionally, the sources indicated that the EU will simplify regulations and ease the obligations for small farmers. These changes require approval from the European Parliament and member states.

This move will alleviate concerns from environmental activists who feared that prolonged delays would exacerbate the ongoing high deforestation rates in many parts of the world. This EU law aims to curb deforestation linked to the import of products such as soy, beef, and palm oil.

The European Commission is also expected to propose easing companies' obligations to track deforestation activities within their value chains.

EU Environment Commissioner Jessika Roswall announced last month that she would push for the extension, stating that the IT systems used for corporate compliance could not handle the volume of requests. However, she faced resistance within the Commission for being too aggressive in her approach.

Several EU countries have also criticized the law, arguing that it is overly bureaucratic and punitive towards regional farmers