The European Union (EU) has long led global efforts to address climate change and promote sustainability. As part of these efforts, the European Commission launched the EU Green Deal, an ambitious plan to make Europe the first climate-neutral continent by 2050.
The Green Deal focuses on increasing the use of renewable energy, improving energy efficiency, promoting a circular economy, preserving biodiversity and transitioning to sustainable agriculture.
To manage this transition, the EU has developed several instruments.
One notable example is the EU Deforestation Law, which encourages the use of ‘deforestation-free’ products by discouraging the expansion of main drivers such as cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
The Commission also seeks to address carbon leakage (when production shifts to countries with lower environmental standards), and the EU established the Carbon Border Adjustment Mechanism.
Additional tools include the Corporate Sustainability Due Diligence Directive, which promotes sustainable and responsible corporate behaviour across global value chains, and the EU Emissions Trading System, which will significantly affect the airline industry by seeking to reduce emissions through a carbon market.
These instruments are designed to ensure a smooth transition toward sustainability. However, these measures also inadvertently increase operational costs in poorer countries. Producers in these regions often need help with financial burdens of complying with strict environmental regulations, exacerbating existing economic disparities and putting strain on their already limited resources.
The ambitious nature of the EU Green Deal sparked controversy. European farmers and the Group of African Ambassadors in Brussels, have expressed significant concerns about the potential economic impact of the Green Deal’s measures.
Both groups argue that while sustainable agriculture is essential for long-term environmental health, the short-term financial burdens these regulations impose are onerous for them to bear.
Last week’s press release on extending implementation timelines clearly shows that the EU intends to move forward with its plan. We now must switch to implementation mode.
In the context of the EU’s Green Deal, this philosophy underscores the importance of directing our collective efforts toward innovative solutions and sustainable practices rather than clinging to outdated methods and resisting necessary transformations.
The extension, adopted by the European Parliament and Council, provides additional time for stakeholders to prepare for the new requirements, with most African countries classified as ‘low risk.’ Nonetheless, stakeholders must wisely use the time remaining.
Large firms must comply by December 2025, while micro and small enterprises must comply by June 2026. The extension offers stakeholders crucial time to adjust to the new standards.
The Commission acknowledges the challenges of meeting these requirements and aims to facilitate a smoother transition. However, to be compliant in time, stakeholders must start implementing changes now.
Farmers, suppliers, and regulatory bodies need to begin preparations immediately, investing in the technologies and training required to meet the regulation’s traceability and geolocation measures.
Collaboration between governments and industry groups is essential to provide financial and technical support, particularly for small-scale producers who may struggle to cover the compliance costs independently.
By starting these efforts now, producers can adapt more gradually to the new systems, making the transition smoother.
The primary cost will come from implementing advanced tracking systems, ensuring accurate data collection, and verifying the origins of commodities. Producers may need to invest in new technology, hire additional staff for compliance monitoring, and undergo regular audits to meet the regulation’s standards. This financial burden is challenging for small-scale farmers and producers.
Despite these challenges, the traceability and geolocation measures are essential for Green Deal’s credibility. By establishing a clear link between products and source lands, the EU aims to create a more transparent and accountable supply chain, discouraging deforestation and promoting sustainable practices globally.
The European Commission’s extension offers producers the necessary time to adapt. With the right support and investment, stakeholders can work toward meeting these requirements while balancing environmental sustainability with economic viability.
While the EU Green Deal and regulations such as the EU Deforestation Regulation present challenges—particularly for small-scale producers—they also represent a critical opportunity to advance global sustainability goals.
The extended compliance timeline reflects an understanding of the complexities involved and offers a buffer for stakeholders to adjust. With collaboration, sufficient support, and timely investments, it is possible to balance environmental sustainability and economic stability, ensuring a more sustainable future for all.
The writer is Kenya’s Ambassador to Belgium, Mission to the European Union, Organisation of African Caribbean and Pacific States and World Customs Organisation. The article is written at a personal level.
