The new European law aims to ensure that products made, imported, or sold in Europe do not contribute to deforestation or forest degradation anywhere in the world. Companies must demonstrate that their raw materials do not come from areas that have been deforested after the end of 2020.
Obligations
The rules apply to products and sectors including cattle, timber, soy, palm oil, coffee, cocoa, and rubber. Large and medium-sized companies must comply with the obligations from next year. For some smaller enterprises, a later date in 2027 applies.
On Monday, the European Commission presented an adjusted package with clarifications, updated guidelines, and changes to the list of products covered by the law. According to Brussels, these adjustments are meant to make enforcement easier and significantly reduce costs for companies.
Promotion
Exceptions
One notable change is the proposal to exclude leather from the law. At the same time, some other derivative products will be added to the list. Additionally, following complaints from industry sectors, various exceptions will apply for product samples, certain packaging materials, used products, and waste.
The decision regarding leather has sparked sharp criticism from environmental organizations and some politicians. They believe the European Union is weakening an important component of forest protection. Critics warn that such exceptions risk undermining the credibility and effectiveness of the law.
At the same time, the Commission refuses to further loosen the law. Some EU countries wanted to introduce additional exceptions for regions or companies with a low risk of deforestation. Brussels is keeping that door closed for now and emphasizes that the focus must now be on implementation and compliance.
Uncertainty
In recent years, much uncertainty has surrounded the law. Its implementation has already been postponed twice, and companies complained about complicated rules and high administrative burdens. According to the Commission, the new simplifications should bring change to this.
It remains uncertain whether the European Parliament and EU governments can agree on the now—again—adjusted proposal. Supporters see the law as an important tool for protecting forests and the climate, while opponents continue to warn of extra costs and complex obligations.