Ghana and EU Exporters Granted One-Year Extension to Address Environmental Regulations Amid Deforestation Concerns

Ghana and other countries exporting goods to the European Union (EU) will receive an additional year to tackle environmental issues, such as illegal mining, that affect commodities like cocoa.

This extension is part of the EU’s consideration to delay the Deforestation-Free Product Regulation, which was originally set to come into effect on December 30, 2024.

The proposed extension responds to concerns raised by EU trade partners about their preparedness for implementing the regulation.

Introduced on June 29, 2023, the regulation aimed for compliance by the end of 2024.

However, the European Parliament has yet to finalize its decision on the matter, although the proposal has already received approval from the European Council.

If the extension is approved, the regulation would be implemented in December 2025 for large and medium-sized companies, and in December 2026 for small and medium-sized enterprises.

The regulation’s goal is to ensure that essential commodities such as cocoa, palm oil, wood, soy, rubber, and their derivatives sold in the EU do not contribute to deforestation or forest degradation, either in the EU or worldwide.

Under this regulation, operators and traders must provide evidence that their products do not come from recently deforested land or contribute to forest degradation.