EU Anti-Deforestation Regulation Largely 'Dismantled' Despite High Hopes

Widely celebrated as a groundbreaking law that would combat the global scourge of deforestation.

However, the revised version of the European Union's anti-deforestation law, previously touted as the flagship policy of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its original architect and green lawmakers.

"It has been stripped," stated the law's original author, pointing to the exclusion of key obligations for downstream traders to check the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would make enforcement and prosecution more difficult.

Political Dismantling

Green party MEP Marie Toussaint was more blunt, labeling the postponements, exceptions and new loopholes – including one for paper goods – as the "political dismantling" of the law.

This final text stands in stark contrast to the demands of more than a million EU citizens who signed a petition in 2020 demanding a prohibition of goods linked to forest destruction.

When launched in 2021, the EU's climate chief the European commissioner called it "the toughest legislation proposed to combat deforestation."

From Ambition to Compromise

The law's unravelling is seen by critics as the EU walking back its green talk. It faced significant delays, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, authorities invited political interference," commented the Green MEP.

Originally, the regulation required companies to track goods back to their specific geographic origin using GPS coordinates, making them liable for forest loss along their supply lines with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," Schally said. "It was the mechanism that made the rules enforceable, established traceability, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

Yet, the strict due diligence triggered a backlash in Brussels from large companies, exporting nations, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a turning point, creating a new political majority less favorable toward green regulations.

"Additional intense pressure has come from big trading partners like the United States," noted corporate sustainability professor, implying the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law includes several critical weakenings:

• Retailers and traders were mostly exempted from submitting due diligence statements.
• A new “low risk” category was created.
• A option for more reductions was established for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening downstream obligations, it rolled them back," lamented Schally. "By shifting responsibilities upstream, it reduced accountability."

Business Frustration

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"It is very frustrating because we invested significant resources into complying," said a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a major letdown."

The Commission's Stance

An EU representative supported the final law, saying: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation ensures stability, which is key for business and competent authorities to effectively enforce this vitally important law."