Deforestation law U-turn signals discord over Green Deal policy

The EU executive appeared to bow to the inevitable when it proposed on Wednesday a 12-month delay to a law that would require suppliers of palm oil, timber, coffee, beef and other commodities to prove their production did not entail forest clearance or lose access to the EU market from the end of the year.

The move came after months of increasingly vociferous calls from business and farming lobbies and key trading partners including the US and Brazil – and the reaction was swift.

“Ursula von der Leyen has bowed to constant pressure from companies and countries who knew the regulation was coming for years but haven’t prepared properly for it,” said Nicole Polsterer, a campaigner at forests protection and human rights watchdog Fern, laying the blame squarely at the door of the European Commission president.

“This is unacceptable, especially when so many other companies have invested time and money to be ready,” Polsterer said.

Greenpeace EU said the law was one of the “most significant achievements” of the Green Deal that was a centrepiece of von der Leyen’s  first term.

“The Deforestation Regulation was agreed in December 2022, and it’s inexcusable that the Commission took so long to issue the supporting documents for the implementation of the law,” said Sébastien Risso, Greenpeace forest policy director.

The conservative European Peoples’ Party (EPP), the largest group in the European Parliament, launched a concerted push for a delay immediately after the EU elections in June, and with support from political groups further to the right will likely ensure the amendment’s swift passage through the assembly.

“The regulation entering into force on 30 December 2024 would have plunged us into irresponsible chaos,” said German MEP Peter Liese, the EPP’s environment policy lead.

“Many of the conditions for application are not clear and many third countries are rightly complaining. Small farmers, for example in Latin America, need much more support and we must ensure an unbureaucratic implementation.”

“None of this is possible in the few remaining months,” Liese said.

But Dutch lawmaker Gerben-Jan Gerbrandy (Greens) was having none of that, accusing von der Leyen of “deliberately destroying her own Green Deal” while criticising the Commission more broadly for failing to put the law into practice in time.

“Everything to start the implementation was ready for months,” said Gerbrandy, whose sentiments were echoed by lawmaker Bernd Lange (Germany/S&D), who said the decision to delay the deforestation law was a “disgrace”.

“[It] could have been avoided if the Commission’s political level had decided to release supporting documents months ago,” said Lange, adding today’s outcome will “prolong unnecessary uncertainty” while criticising the EU executive for not implementing what EU lawmakers, including a majority of the EPP, had agreed upon.

There has also been a pushback by EU governments in the EU Council, with Germany openly changing its tack after voting in favour in May 2023, following an overwhelmingly endorsement by member states during a gathering of ministers, with the exception of Bulgaria, Latvia, Poland, Finland and Sweden.

Cem Özdemir, German Minister of Food and Agriculture, welcomed the delay of the deforestation’s law implementation saying it was paramount to give time for European companies, business, member states and production countries to “prepare adequately” – while stressing, however, that “the content of the law must remain untouched”.

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Germany’s position is not shared by all governments, however. Another EU diplomat, speaking on condition of anonymity, said “delaying isn’t enough” and suggested the co-legislators should go further and “open it up and change the scope”.

A second diplomatic source from another EU country, who did not want to be named, said the postponement was an “inevitable consequence” of the significant delay by the Commission in providing proper guidance to support business operators and address their “legitimate concerns”.

“We will do our best to make [sure the proposal is] adopted as soon as possible,” a third EU diplomat told Euronews, referring to the legislative procedure that will follow – the amendment proposal requires support from a majority within both the European Parliament and the EU Council.

“A successful and timely implementation of the regulation would bring credibility to the EU’s efforts to impose measures to preserve biodiversity and the climate,” a fourth diplomat said, again on condition of anonymity.

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Alongside its proposal to delay the new regulatory regime, designed to prevent EU consumer demand fuelling environmental degradation outside the 27-strong bloc, the Commission published what it described as “additional guidance documents and a stronger international cooperation framework” that it said would support producers, trading partners and EU governments in preparing for the new regulatory regime.

Representing companies refining wood into renewable materials, the Swedish Forest Industries Federation (SFIF) welcomed the additional 12 months proposed by the Commission and urged the Council and the Parliament to approve the Commission’s proposal “swiftly”.

“It is important that the announced guidance and updated FAQ will provide urgent clarifications on how the implementation practically can work in a harmonized way globally,” said Viveka Beckeman, SFIF’s director general.

“The greatest uncertainty that must be addressed relates to traceability and how it will work through industrial facilities,” Beckeman added.

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The German-based Forest Stewardship Council (FSC), promoting responsible forest management and guiding companies through the necessary compliance requirements, urged all operators affected by today’s decision not to regard it as a reduction in commitment reiterating its “full support” for a deforestation-free market in Europe.

“We encourage companies to leverage FSC’s existing and upcoming solutions to complement their efforts in meeting Deforestation Regulation obligations,” an FSC spokesperson said.