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It was a pioneering law that would combat the worldwide crisis of forest loss.

However, the revised version of the EU's deforestation regulation, once touted as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, prompting alarm from its initial author and environmental politicians.

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

He warned that fewer obligated actors, fewer data points, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Green party MEP Marie Toussaint went further, describing the delays, loopholes and exemptions – including one for printed products – as the "systematic weakening" of the law.

This final text stands in stark contrast to the hopes of over 1.2 million EU citizens who supported an initiative in 2020 calling for a ban on deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the toughest law proposed to combat forest loss."

A Story of Dilution

The regulation's dilution has been interpreted as the European Union retreating from its green talk. The proposal encountered two major postponements, ostensibly over IT issues, which sparked criticism.

"By revisiting the legislation rather than fixing a simple IT problem, authorities invited political interference," commented Toussaint.

In its first draft, the law 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.

"This was not red tape for its own sake," Schally explained. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the strict due diligence triggered a backlash in the EU capital from multinational corporations, producer countries, rightwing parties and member states with forestry industries.

Experts cite last year's European Parliament elections as a turning point, creating a new political majority more skeptical of green regulations.

"Additional intense pressure has come from big trading partners outside the EU," said corporate sustainability professor, suggesting the commission gave in to some demands in trade talks.

The Weakened Final Text

In the final legislation features key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was established for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it stripped them back," said the law's author. "Moving obligations upstream, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we put a lot of effort into preparing," stated 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

An EU representative supported the final law, stating: "The commission has responded to concerns and taken action to ensure a simple, fair and cost-efficient implementation."

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