Widely celebrated as a groundbreaking law that would curb the worldwide crisis of forest loss.
However, the final version of the EU'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 initial author and green lawmakers.
"It has been stripped," stated Hugo Schally, citing the exclusion of key obligations for downstream traders to verify the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.
Schally cautioned that fewer obligated actors, less information collected, and imprecise sourcing details would complicate the task of authorities.
Political Dismantling
Environmental MEP 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 final text is a far cry from the demands of more than a million EU citizens who signed a petition in 2020 calling for 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 legislation ever put forward to fight forest loss."
A Story of Dilution
The law's unravelling is seen by critics as the European Union retreating from its green talk. The proposal encountered significant delays, ostensibly over technical problems, which sparked criticism.
"By reopening this file instead of solving a simple IT problem, authorities invited political interference," remarked Toussaint.
In its first draft, the law required companies to trace goods back to their specific geographic origin using geolocation data, making them liable for forest loss along their supply lines with penalties and hefty fines.
"It wasn't bureaucracy for its own sake," the former official explained. "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 provoked opposition in Brussels 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, shifting the balance of power less favorable toward green regulations.
"Additional intense pressure came from big trading partners outside the EU," noted corporate sustainability professor, suggesting the EU yielded to some demands in trade talks.
The Weakened Final Text
The passed law includes key dilutions:
- Downstream operators were largely freed from conducting rigorous checks.
- A new exemption for small operators was created.
- A window for further "simplifications" was opened for next spring.
- Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.
"Instead of tightening rules for companies, it rolled them back," lamented Schally. "By shifting responsibilities to producers, 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 preparing," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a major letdown."
Official Defense
A commission spokesperson defended the outcome, stating: "The commission has responded to feedback and acted to ensure a pragmatic and balanced application."
"The revised regulation provides for predictability, which is crucial for companies and competent authorities to successfully implement this very important regulation."
