European Union Deforestation Law Largely 'Watered Down' After High Hopes
Widely celebrated as a pioneering law that would curb the global crisis of forest loss.
But, the final version of the EU's anti-deforestation law, once heralded as the flagship policy of the European Green Deal, has emerged in a significantly diluted state, prompting criticism from its original architect and green lawmakers.
"It has been stripped," stated the law's original author, citing the exclusion of key obligations for downstream traders to check the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.
He warned that fewer obligated actors, less information collected, and less precise origin data would complicate the task of authorities.
Political Dismantling
Green party MEP a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – including one for printed products – as the "systematic weakening" of the law.
This final text is a far cry from the demands of more than a million EU citizens who supported an initiative in 2020 calling for 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 fight deforestation."
A Story of Dilution
The regulation's dilution has been interpreted as the European Union retreating from its environmental promises. It faced significant delays, reportedly over IT issues, which drew condemnation.
"By revisiting the legislation instead of solving a simple IT problem, authorities invited political interference," remarked the Green MEP.
In its first draft, the law required companies to track commodities 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 said. "It was the mechanism that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."
Intense Lobbying
Yet, the strict due diligence triggered a backlash in Brussels from large companies, exporting nations, conservative political groups and member states with forestry industries.
Analysts point to last year's European Parliament elections as a decisive moment, creating a new political majority more skeptical of environmental rules.
"Additional intense pressure has come from big trading partners like the United States," noted expert Andreas Rasche, implying the commission gave in to some requests during negotiations.
The Weakened Final Text
The passed law features several critical weakenings:
- Downstream operators were mostly exempted from submitting due diligence statements.
- A new “low risk” category was introduced.
- A window for further "simplifications" was opened 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," lamented Schally. "By shifting responsibilities to producers, it lessened the number of responsible firms."
Uncertainty for Companies
The protracted process and revisions have also caused frustration for businesses that complied early.
"We feel very annoyed because we put a lot of effort into preparing," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."
Official Defense
An EU representative defended the outcome, stating: "We have listened to feedback and taken action to ensure a simple, fair and cost-efficient application."
"The revised regulation ensures stability, which is crucial for companies and competent authorities to successfully implement this very important law."