EU Anti-Deforestation Law Largely 'Watered Down' After High Hopes

Widely celebrated as a groundbreaking regulation that would curb the global scourge of forest loss.

However, the revised version of the EU's deforestation regulation, previously touted as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, prompting alarm from its initial author and environmental politicians.

"It has been hollowed out," said Hugo Schally, pointing to the exclusion of crucial requirements for downstream traders to verify the origin 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 complicate the task of authorities.

A Watered-Down Law

Green party vice-president Marie Toussaint went further, describing the postponements, exceptions and new loopholes – such as one for paper goods – as the "systematic weakening" of the law.

This outcome is a far cry from the hopes of over 1.2 million EU citizens who signed a petition in 2020 demanding a prohibition of goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner the European commissioner called it "the most ambitious legislation ever put forward to fight forest loss."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its green talk. It faced significant delays, reportedly over technical problems, which drew condemnation.

"By reopening this file rather than fixing a technical issue, authorities invited political interference," remarked Toussaint.

In its first draft, the regulation required companies to trace commodities back to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with criminal charges and hefty fines.

"It wasn't bureaucracy for its own sake," Schally said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

Yet, the rigorous checks provoked opposition in Brussels from multinational corporations, producer countries, rightwing parties and EU logging states.

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

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

The Weakened Final Text

The passed law features key dilutions:

• Downstream operators were largely freed from conducting rigorous checks.
• A new “low risk” category was introduced.
• A option for more reductions was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening rules for companies, it rolled them back," said the law's author. "Moving obligations upstream, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also caused frustration for businesses that complied early.

"We feel very annoyed because we invested significant resources into complying," stated a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."

Official Defense

A commission spokesperson defended the outcome, saying: "The commission has responded to concerns and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation ensures stability, which is crucial for companies and national regulators to effectively enforce this very important regulation."