🔗 Share this article

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

But, the final version of the European Union's deforestation regulation, once touted as the flagship policy of the European Green Deal, has emerged in a severely weakened state, prompting alarm from its original architect and environmental politicians.

"It has been stripped," said Hugo Schally, citing the removal of key obligations for downstream traders to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would complicate the task of authorities.

A Watered-Down Law

Environmental MEP a leading green politician was more blunt, labeling the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

This outcome stands in stark contrast to the demands of over 1.2 million European citizens who signed a petition in 2020 demanding a prohibition of goods linked to forest destruction.

At its launch in 2021, the EU's climate chief the European commissioner trumpeted it as "the most ambitious law ever put forward to combat forest loss."

A Story of Dilution

The law's unravelling has been interpreted as the European Union retreating from its green talk. The proposal encountered significant delays, reportedly over IT issues, which drew condemnation.

"By reopening this file rather than fixing a technical issue, authorities invited political interference," commented the Green MEP.

Originally, the regulation mandated that firms to trace goods back to their exact plot of land using GPS coordinates, holding them accountable for forest loss along their supply lines with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that made the rules enforceable, established traceability, and stopped companies from hiding behind complex supply chains."

Intense Lobbying

However, the strict due diligence provoked opposition in the EU capital from large companies, producer countries, conservative political groups and EU logging states.

Analysts point to last year's EU elections as a turning point, creating a new political majority more skeptical of green regulations.

"Additional intense pressure has come from big trading partners outside the EU," said expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

Key Loopholes Introduced

In the final legislation includes several critical weakenings:

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

"Rather than strengthening rules for companies, it rolled them back," said Schally. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The protracted process and revisions have also caused frustration for companies that prepared in advance.

"It is very frustrating because we put a lot of effort into preparing," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a major letdown."

Official Defense

An EU representative supported the final law, stating: "The commission has responded to concerns and acted to ensure a pragmatic and balanced implementation."

"The new text ensures stability, which is crucial for companies and competent authorities to successfully implement this very important regulation."