🔗 Share this article

It was a groundbreaking regulation that would help stop the worldwide crisis of forest loss.

But, the revised version of the European Union's anti-deforestation law, once heralded as the crown jewel of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its initial author and green lawmakers.

"The regulation was hollowed out," said the law's original author, pointing to the removal of crucial requirements for downstream traders to verify the origin 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.

A Watered-Down Law

Green party MEP a leading green politician was more blunt, labeling the delays, loopholes and exemptions – including one for paper goods – as the "systematic weakening" of the law.

This final text stands in stark contrast to the demands of more than a million European citizens who signed a petition in 2020 demanding a ban on deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans called it "the toughest legislation 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 instead of solving a technical issue, authorities invited political interference," commented Toussaint.

Originally, the law required companies to trace commodities back to their specific geographic origin using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and hefty fines.

"This was not red tape for its own sake," the former official explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains."

Intense Lobbying

Yet, the rigorous checks triggered a backlash in the EU capital from large companies, producer countries, conservative political groups 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 has come from big trading partners like the United States," noted corporate sustainability professor, implying the EU yielded to some requests during negotiations.

Key Loopholes Introduced

The passed law features several critical weakenings:

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

"Instead of tightening downstream obligations, it rolled them back," said Schally. "Moving obligations to producers, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"It is very frustrating because we put a lot of effort into preparing," stated Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a big frustration."

The Commission's Stance

A commission spokesperson defended the outcome, saying: "We have listened to concerns and taken action to ensure a pragmatic and balanced application."

"The new text ensures stability, which is crucial for companies and competent authorities to effectively enforce this very important regulation."