🔗 Share this article

It was a landmark regulation that would combat the global crisis of deforestation.

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

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

He warned that fewer obligated actors, less information collected, and less precise origin data would make enforcement and prosecution more difficult.

Political Dismantling

Environmental MEP Marie Toussaint was more blunt, labeling the postponements, exceptions and new loopholes – including one for paper goods – as the "systematic weakening" of the law.

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

When launched in 2021, then-Green Deal commissioner the European commissioner called it "the most ambitious law proposed to combat forest loss."

A Story of Dilution

The law's unravelling is seen by critics as the European Union retreating from its environmental promises. It faced significant delays, reportedly over technical problems, which sparked criticism.

"By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," commented the Green MEP.

In its first draft, the regulation mandated that firms to trace commodities to their exact plot of land using geolocation data, making them liable for deforestation in their supply chains with penalties and hefty fines.

"This was not red tape for its own sake," the former official said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Intense Lobbying

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

Analysts point to last year's EU elections as a turning point, shifting the balance of power more skeptical of environmental rules.

"Additional intense pressure has come from major export markets 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:

• Downstream operators were largely freed from submitting due diligence statements.
• A new “low risk” category was introduced.
• A option for more reductions was established for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening downstream obligations, it rolled them back," said the law's author. "Moving obligations upstream, it reduced accountability."

Business Frustration

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

"We feel very annoyed because we invested significant resources 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: "We have listened to concerns and taken action to ensure a pragmatic and balanced application."

"The new text provides for predictability, which is crucial for companies and national regulators to effectively enforce this vitally important law."