Cash Strategist 10/9/2024

Market reacts to pause in EU deforestation rule

The European Union recently proposed a delay to a landmark environmental bill - aimed at curbing global deforestation - due to significant pushback from industry players.

The bill, initially slated to take effect in early 2025, sought to compel importers to verify the deforestation-free status of their supply chains. It also intended to prevent the export of goods produced within the EU from deforested land.

However, throughout the spring and summer, stakeholders ranging from farmers to government officials expressed concerns about the bill's potential impact on trade partners and the logistical challenges associated with its implementation.

In practice, the bill would have required companies importing commodities...