The European Union's Zero Deforestation Law, which aims to prevent deforestation caused by the trade of certain products within the EU market, was initially set to come into effect by the end of 2024. However, due to concerns raised by international partners and EU member states about the law's preparedness, the European Commission decided to delay the implementation by one year. The law will now come into effect for large companies on December 30, 2025, and for micro and small businesses on June 30, 2026, to ensure it is implemented correctly and effectively.

To ensure efficient execution of the law, the European Commission has taken a number of measures, including providing practical and detailed guidance on compliance. The guidance covers key issues such as definitions of "forest degradation," the scope of the law, and traceability obligations. A comprehensive FAQ has also been published to address concerns from global stakeholders. Additionally, the Commission has adopted measures to help micro and small enterprises by offering more lenient requirements.

In an effort to improve transparency and effectiveness, the EU has divided countries into low, medium, or high-risk categories to help operators conduct due diligence and allow for better regulatory oversight. To ensure global cooperation, the Commission is developing an international strategy with five priority action areas and eight key principles, alongside tools like dialogues and financing options to address deforestation challenges globally.

Finally, the Commission has completed the setup of an information system to handle company registrations and due diligence declarations. The system will begin accepting registrations in November 2024 and fully launch in December 2024, allowing operators to submit their declarations before the law takes effect. Training and multi-language guides are being provided to help businesses understand and use the system effectively.

Source: China Leather Industry Association, October 18, 2024.