Nestlé, Ferrero and more than 50 other companies say the uncertainty is putting investments at risk. The law, which was due to come into force on 30 December, bans the sale within the EU of goods made from raw materials grown on deforested land from seven sectors, including cocoa, palm oil, rubber and wood. But it has been fiercely contested by producer countries such as Indonesia, Brazil and Malaysia, prompting the European Commission to say last month that it would postpone its implementation for a year. Other companies opposing the delay include tyre companies Michelin and Pirelli, supermarket chain Carrefour, and consumer companies Mars and Unilever. According to a report by Thailand’s Krungsri bank this year, the deforestation law will impact about $401 billion of EU trade per year, about 5.5 per cent of all imports into the [EU] bloc in 2022. In its assessment of the law’s impact, the committee estimated that the cost of compliance could amount to between $170 billion and $2.5 billion per year.
