EU Faces Pressure from Eleven Countries to Weaken Deforestation Law

Today’s ESG Updates:

• EU Faces Pressure from Eleven Countries to Weaken Deforestation Law: There are calls from EU member states to weaken the upcoming deforestation law.
• Germany Retracts Statements Against EU CSDDD Regulations: Germany’s government clarifies that it does not call for the elimination of EU’s new law on sustainability.
• World Travel & Tourism Council and Greenview Launch Sustainability Tool: The tool will enable sustainability tracking in tourism, called the Global ESG Policy Tracker.
• Oil Prices Steady Following Trump’s Decision to Extend EU Trade Talks Deadline: With trade talks being delayed, concerns about U.S. tariffs are slightly eased for now.

EU faces pressure from eleven countries to weaken deforestation law

Figures show that 10% of global deforestation is fuelled by EU consumption of imported soy, beef, palm oil amongst other products. The EU’s pioneering deforestation law aims to completely eradicate this percentage as part of its green agenda. The EU is now facing further pressure from eleven member countries to delay and weaken this upcoming law. It has already delayed its launch by a year to December 2025 as trading partners from Brazil and the U.S following complaints. The group of countries have demanded that the EU Commission simplifies its rules further and that the application date is further delayed to implement these changes. Companies and investors can closely monitor these developments and  stay ahead of regulatory shifts using ESG tools. 

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Further reading: Eleven countries demand EU weakens deforestation law further, document shows

Germany retracts statements against EU CSDDD regulations

Germany’s government has retracted previous statements calling for the EU’s CSDDD (Corporate Sustainability Due Diligence Directive) to be eliminated. The laws according to this directive require that companies address their negative impacts on human rights and the environment across their value chains. The CSDD was initially proposed by the European Commission in February 2022 and its legislation was adopted in May 2024, however multiple revisions meant that the number of companies covered by the laws has significantly reduced. Chancellor Merz’s call to scrap the CSDDD followed a coalition agreement to form a government in Germany in April that also included rollbacks on Germany’s own human rights and environmental supply chain due diligence law. Stefan Kornelius, government spokesperson emphasised that previous comments against the CSDDD were to do with a streamlining of the process towards a sustainable future.

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Further reading: Germany Walks Back Call to Scrap the EU’s Supply Chain Sustainability Law

World Travel & Tourism Council and Greenview launch sustainability tool

The World Travel & Tourism Council (WTTC) has launched a new tool called the Global ESG Policy Tracker, in collaboration with Greenview which is a sustainability platform dedicated to helping hospitality organisations stay up to date with changing ESG regulations. The tool has been designed with businesses in the travel and tourism sector in mind. Julia Simpson, WTTC President stated that, “The ESG Tracker offers timely, clear and actionable insights – helping them benchmark progress, anticipate change, and deliver on their commitments”. For businesses also looking to closely monitor these developments, ESG tools .

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Further Reading: WTTC, Greenview Launch Global ESG Policy Tracker for Tourism Sector

Oil prices steady following Trump’s decision to extend EU trade talks deadline

Despite recent instability in EU-US relations which has had a serious knock-on effect on oil prices, they steadied following Trump’s announcement that he has extended a deadline for trade talks with the EU. Brent crude futures decreased by 17 cents at $64.61 a barrel at 8:35 ET while U.S. West Texas Intermediate crude decreased by 18 cents to $61.35 a barrel. Trump agreed to extend a deadline for trade talks with the EU until July 9 which signals another temporary trade policy reprieve. 

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Further reading: Oil steadies after Trump extends EU trade talks deadline

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: roya ann miller