Deforestation: EU Commission’s amendments are insufficient

"The amendments to the Deforestation Regulation are inadequate and fall far short of what would have been required. Despite repeated calls from the skilled crafts sector, the European Commission has not tabled a further amending bill. The approach of resolving legal inconsistencies through guidance and regulatory adjustments falls short of the mark and leaves key problems unaddressed.

Although last year’s amendment, initiated by the German federal government, was an important step, it should have been followed up with a further legislative initiative. The fact that this has not happened is a serious matter.

As a result, regulations remain in place which place a considerable burden on downstream market participants and effectively compel the comprehensive tracking of non-compliant products throughout the entire value chain. This achieves exactly the opposite of what was intended: instead of clear and manageable guidelines, it creates new uncertainties, additional red tape and significant liability risks. Businesses are being forced into a role that they are neither able nor expected to fulfil, with noticeable consequences for operations, costs and competitiveness.

These structural shortcomings cannot be remedied by non-binding guidelines. What would have been required was a formal amending bill containing clear legislative amendments.

Furthermore, the requirement to ensure that production in third countries is fully compliant with the law remains virtually impossible to implement in practice and fails to take account of the realities on the ground.

The Commission had the opportunity to effectively cut red tape at this stage without jeopardising the achievement of its objectives. This opportunity was not taken, and the existing problems are being further exacerbated."