A significant compromise reached between the European Parliament and the EU Council presidency on Thursday has considerably weakened the EU’s landmark deforestation regulation, raising concerns about the bloc’s commitment to global climate goals and supply chain sustainability. Initially slated to take effect later this year, the regulation’s implementation has been pushed back by a year, a move critics say undermines its intended impact.
The agreement notably excludes printed materials from the regulation’s scope, a concession deemed particularly problematic given the role of paper production in deforestation. Furthermore, the shift in responsibility for due diligence reporting is a pivotal change. Instead of holding marketers and retailers accountable for ensuring their products aren’s linked to deforestation, the onus now falls solely on the companies first introducing a product onto the EU market. This strategic alteration is attracting scrutiny, with analysts questioning whether it diffuses responsibility and potentially shields larger, more complex supply chains from rigorous oversight.
While a simplified, one-time declaration has been established for micro and small enterprises – intended as a gesture of relief – the overall dilution of the regulation risks diminishing its effectiveness in curbing deforestation linked to commodities like coffee, cocoa, palm oil and timber. The FAO estimates a staggering 420 million hectares of forest – an area larger than the European Union – were lost between 1990 and 2020. Worryingly, EU consumption is implicated in approximately 10% of this global deforestation, with palm oil and soy accounting for over two-thirds of that impact.
The compromise represents a political battleground, highlighting the conflicting pressures of environmental ambition and economic feasibility. While proponents of the softened regulation emphasize the need to avoid overburdening businesses and fostering trade disruption, environmental advocacy groups are condemning the move as a retreat from climate leadership and a betrayal of commitments to protect vital ecosystems and Indigenous communities dependent on those forests.
The European Parliament is scheduled to vote on the finalized agreement during its plenary session in mid-December. Formal ratification requires approval from both the Parliament and the Council, after which the altered regulation will take effect. The long-term implications for the EU’s reputation as a champion of sustainable trade and its contribution to global climate action remain to be seen.