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Originally hailed as a landmark regulation that would curb the worldwide crisis of deforestation.

But, the revised version of the European Union's deforestation regulation, once heralded as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, leading to alarm from its initial author and environmental politicians.

"The regulation was stripped," said the law's original author, citing the removal of key obligations for downstream traders to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, fewer data points, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Environmental MEP a leading green politician went further, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "political dismantling" of the law.

This outcome is a far cry from the hopes of over 1.2 million European citizens who signed a petition in 2020 calling for a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief the European commissioner trumpeted it as "the most ambitious law proposed to combat deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its environmental promises. It faced two major postponements, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation rather than fixing a simple IT problem, authorities invited political interference," remarked the Green MEP.

In its first draft, the regulation mandated that firms to track commodities to their exact plot of land using GPS coordinates, holding them accountable for forest loss along their supply lines with criminal charges and large financial penalties.

"It wasn't bureaucracy for its own sake," Schally said. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains."

Mounting Pressure

However, the rigorous checks provoked opposition in the EU capital from large companies, producer countries, conservative political groups and EU logging states.

Experts cite last year's EU elections as a turning point, creating a new political majority more skeptical of environmental rules.

"The other pressure has come from major export markets outside the EU," noted expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

The Weakened Final Text

The passed law features key dilutions:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A option for more reductions was established for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it rolled them back," lamented Schally. "By shifting responsibilities upstream, it lessened the number of responsible firms."

Business Frustration

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we put a lot of effort into preparing," said Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a major letdown."

The Commission's Stance

A commission spokesperson supported the final law, stating: "The commission has responded to feedback and acted to ensure a pragmatic and balanced application."

"The new text ensures stability, which is crucial for companies and national regulators to effectively enforce this very important regulation."