🔗 Share this article EU Deforestation Regulation Largely 'Watered Down' After Initial Fanfare Widely celebrated as a groundbreaking law that would help stop the global crisis of deforestation. However, the final version of the EU's deforestation regulation, previously heralded as the crown jewel of the European Green Deal, has emerged in a severely weakened state, prompting alarm from its initial author and environmental politicians. "It has been stripped," said Hugo Schally, citing the exclusion of key obligations for downstream traders to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber. He warned that a reduced number of responsible companies, less information collected, and less precise origin data would make enforcement and prosecution more difficult. Political Dismantling Green party MEP a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – including one for paper goods – as the "systematic weakening" of the law. This outcome is a far cry from the hopes of more than a million EU citizens who supported an initiative in 2020 calling for a ban on goods linked to forest destruction. When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious law ever put forward to combat forest loss." A Story of Dilution The regulation's dilution is seen by critics as the EU walking back its environmental promises. It faced significant delays, reportedly over technical problems, which sparked criticism. "By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," commented Toussaint. Originally, the law mandated that firms to track commodities to their specific geographic origin using GPS coordinates, holding them accountable for forest loss along their supply lines with criminal charges and large financial penalties. "This was not red tape for its own sake," the former official said. "These rules were the tool that made the rules enforceable, established traceability, and stopped companies from hiding behind complex supply chains." Intense Lobbying Yet, the rigorous checks triggered a backlash in the EU capital from multinational corporations, exporting nations, rightwing parties and member states with forestry industries. Analysts point to last year's EU elections as a turning point, shifting the balance of power less favorable toward environmental rules. "Additional intense pressure came from big trading partners like the United States," noted expert Andreas Rasche, implying the commission gave in to some requests during negotiations. Key Loopholes Introduced The passed law includes several critical weakenings: Retailers and traders were largely freed from submitting due diligence statements. A new exemption for small operators was created. A option for more reductions was established for next spring. Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny. "Rather than strengthening downstream obligations, it rolled them back," lamented the law's author. "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. "It is very frustrating because we invested significant resources into preparing," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a major letdown." Official Defense A commission spokesperson supported the final law, saying: "We have listened to feedback and acted to ensure a simple, fair and cost-efficient application." "The revised regulation provides for predictability, which is key for business and competent authorities to successfully implement this vitally important law."