A flagship European Union law designed to combat global deforestation has been effectively 'dismantled', according to its original architect and green politicians, after being stripped of key enforcement mechanisms.
From 'Game-Changer' to 'Hollowed Out'
Originally proposed in 2021, the EU Deforestation Regulation (EUDR) was celebrated as a historic step. It aimed to ban products linked to forest destruction from the EU market, requiring companies to trace commodities like palm oil, soy, beef, cocoa, coffee, rubber, and wood back to their precise plot of origin using geolocation data. Non-compliance could have led to fines of up to 4% of a company's annual turnover.
However, the final version passed this month is a shadow of its former self. Hugo Schally, the retired European Commission official who authored the initial law, told The Guardian it had been 'hollowed out'. The core change was the removal of obligations for downstream traders—those who sell finished products—to verify the origin of their goods.
'There now will be fewer actors with direct obligations, fewer data points along the value chain and less precise origin data, which will make enforcement and eventual prosecution more difficult,' Schally stated.
Political Pressure and 'Pandora's Box'
The law's unravelling is attributed to intense lobbying and political shifts. After facing backlash from multinational corporations, producer countries, right-wing parties, and EU logging states, the legislation was delayed twice for 12 months each, ostensibly over IT system issues.
Marie Toussaint, Green party vice-president in the European Parliament, said reopening the file 'opened Pandora's box'. She blamed a new political alliance formed after the 2024 EU elections, where the conservative European People's Party (EPP) aligned with far-right groups hostile to the Green Deal.
'The political dismantling of the law' was sealed, Toussaint argued, with the addition of loopholes and a specific exemption for printed products—seen as a concession to former US President Donald Trump during trade talks.
Consequences for Business and the Environment
The weakened law has significant implications. Downstream operators are largely freed from due diligence, a 'low risk' category for small operators was created, and provisions for further 'simplifications' were added. Notably, the only nations designated for 'high risk' scrutiny are four geopolitical adversaries of the EU: Russia, Belarus, North Korea, and Myanmar.
For businesses that invested early in compliance, the constant revisions have caused frustration. Xavier Rombouts, who runs a Belgian coffee company, said his firm invested in software and training only to face further postponements and changes. 'It’s a big frustration,' he said.
The final outcome stands in stark contrast to the hopes of the 1.2 million EU citizens who petitioned for the law in 2020. With over 420 million hectares of forest lost since 1990—an area larger than the EU—environmental campaigners see the diluted regulation as a major setback in the fight against climate change and biodiversity loss.
A European Commission spokesperson defended the final text, stating it ensured 'a simple, fair and cost-efficient implementation' and had already spurred positive action on the ground.
