EU Anti-Deforestation Law Effectively 'Dismantled' After High Hopes

It was a pioneering piece of legislation that would help stop the worldwide scourge of forest loss.

However, the final version of the European Union's anti-deforestation law, once touted as the flagship policy of the Green Deal, has emerged in a significantly diluted state, leading to alarm from its original architect and environmental politicians.

"The regulation was hollowed out," stated Hugo Schally, pointing to the removal of crucial requirements for downstream traders to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

A Watered-Down Law

Environmental MEP Marie Toussaint went further, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "systematic weakening" of the law.

This final text stands in stark contrast to the hopes 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, then-Green Deal commissioner Frans Timmermans trumpeted it as "the toughest law ever put forward to fight forest loss."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its environmental promises. It faced significant delays, ostensibly over technical problems, which drew condemnation.

"By revisiting the legislation rather than fixing a technical issue, the commission opened Pandora’s box," commented the Green MEP.

In its first draft, the law required companies to trace commodities back to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," Schally explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the rigorous checks triggered a backlash in the EU capital from large companies, producer countries, conservative political groups and EU logging states.

Experts cite last year's EU elections as a turning point, shifting the balance of power more skeptical of green regulations.

"The other pressure came from major export markets outside the EU," noted expert Andreas Rasche, implying the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law features several critical weakenings:

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

"Rather than strengthening rules for companies, it stripped them back," lamented the law's author. "By shifting responsibilities to producers, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we put a lot of effort into complying," stated a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a big frustration."

The Commission's Stance

An EU representative defended the outcome, saying: "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 effectively enforce this vitally important law."