EU Deforestation Law Effectively 'Dismantled' After High Hopes

Originally hailed as a pioneering regulation that would help stop the global scourge of deforestation.

But, the final version of the European Union's deforestation regulation, previously heralded as the flagship policy of the Green Deal, has been passed in a severely weakened state, prompting criticism from its original architect and environmental politicians.

"It has been hollowed out," stated the law's original author, pointing to the removal of crucial requirements for later-stage companies to verify the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that fewer obligated actors, fewer data points, and less precise origin data would complicate the task of authorities.

A Watered-Down Law

Environmental vice-president a leading green politician was more blunt, describing the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law.

This outcome is a far cry from the demands of over 1.2 million European citizens who signed a petition in 2020 calling for a ban on goods linked to forest destruction.

At its launch in 2021, the EU's climate chief the European commissioner trumpeted it as "the toughest legislation proposed to combat forest loss."

From Ambition to Compromise

The law's unravelling has been interpreted as the EU walking back its environmental promises. It faced two major postponements, ostensibly over technical problems, which drew condemnation.

"By reopening this file instead of solving a simple IT problem, authorities invited political interference," remarked the Green MEP.

In its first draft, the regulation mandated that firms to trace goods to their specific geographic origin using GPS coordinates, making them liable for deforestation in their supply chains with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks."

Intense Lobbying

However, the strict due diligence triggered a backlash in the EU capital from large companies, producer countries, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a decisive moment, creating a new political majority more skeptical of environmental rules.

"Additional intense pressure came from big trading partners outside the EU," noted corporate sustainability professor, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

In the final legislation includes key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A option for more reductions was opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," lamented the law's author. "Moving obligations to producers, it lessened the number of responsible firms."

Uncertainty for Companies

The protracted process and revisions have also created annoyance for businesses that complied early.

"We feel very annoyed because we invested significant resources into preparing," stated a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a big frustration."

Official Defense

A commission spokesperson supported the final law, saying: "The commission has responded to feedback and acted to ensure a simple, fair and cost-efficient implementation."

"The new text provides for predictability, which is crucial for companies and competent authorities to effectively enforce this very important law."