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It was a groundbreaking regulation that would help stop the global crisis of deforestation.

However, the revised version of the European Union's deforestation regulation, previously heralded as the flagship policy of the European Green Deal, has emerged in a significantly diluted state, leading to alarm from its initial author and green lawmakers.

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

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

Political Dismantling

Green party vice-president Marie Toussaint went further, labeling the postponements, exceptions and new loopholes – including one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from 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 the European commissioner trumpeted it as "the most ambitious law ever put forward to fight deforestation."

From Ambition to Compromise

The law's unravelling is seen by critics as the European Union retreating from its green talk. It faced significant delays, ostensibly over IT issues, which drew condemnation.

"By reopening this file instead of solving a technical issue, authorities invited political interference," remarked the Green MEP.

In its first draft, the regulation mandated that firms to trace commodities to their specific geographic origin using GPS coordinates, making them liable for deforestation in their supply chains with criminal charges and hefty fines.

"This was not red tape for its own sake," the former official explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains."

Intense Lobbying

However, the rigorous checks triggered a backlash in Brussels from multinational corporations, exporting nations, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a turning point, creating a new political majority more skeptical of environmental rules.

"Additional intense pressure has come 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 features key dilutions:

• Downstream operators were largely freed from conducting rigorous checks.
• A new exemption for small operators was created.
• A option for more reductions was opened for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Rather than strengthening downstream obligations, it rolled them back," lamented Schally. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"We feel very annoyed because we invested significant resources into complying," 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, stating: "We have listened to concerns and taken action to ensure a pragmatic and balanced implementation."

"The new text ensures stability, which is crucial for companies and competent authorities to successfully implement this very important regulation."