This article was the Topic of the Week in Newsletter KW 35 of 2025.

Complex proofs overwhelm businesses

By late 2025, EU companies will need to prove that their products do not originate from land deforested after 2020. Affected raw materials include beef, palm oil, soy, coffee, cocoa, wood, and rubber, as well as products made from them, ranging from chocolate to newspapers.

The evidence requirement involves geo-data and extensive due diligence across entire supply chains. Small and medium-sized enterprises often lack the necessary resources. Moreover, significant trading partners like China partially refuse to provide the requested geo-data. Supply bottlenecks and import stoppages loom.

Time pressure endangers implementation

Five months prior to enactment, chaos reigns: Brussels, member states, and third countries are embroiled in controversial discussions about implementation. Tens of thousands of German companies face unresolved issues and lack planning security.

A further postponement is inevitable – the start was already delayed by twelve months in 2024. Businesses are calling for fundamental improvements prior to the application, in line with the EU Single Market Strategy.

Practical solutions demanded

The business sector recommends specific improvements:

• Zero-risk category for EU member states without significant deforestation risk
• Once-Only Principle: Single proof requirement applies to the entire supply chain, instead of a cascading effect for each sale
• Transition year without sanctions to gather experience
• Alternatives to the problematic geo-localization requirement
• De-minimis thresholds for minor quantities

Sustainability needs pragmatism

Forest conservation and economic efficiency need not be mutually exclusive. The EU must balance its high standards with practical, legally sound solutions. Only then can deforestation-free trade succeed without supply chain collapse.