🔗 Share this article European Union Deforestation Regulation Effectively 'Watered Down' After High Hopes Originally hailed as a groundbreaking piece of legislation that would curb the worldwide scourge of forest loss. But, the revised version of the EU's anti-deforestation law, once heralded as the crown jewel of the Green Deal, has been passed in a severely weakened state, prompting criticism from its original architect and green lawmakers. "The regulation was hollowed out," said Hugo Schally, pointing to the exclusion of crucial requirements for later-stage companies to check the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee. Schally cautioned that fewer obligated actors, fewer data points, and imprecise sourcing details would complicate the task of authorities. A Watered-Down Law Environmental vice-president a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – including 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. At its launch in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the toughest law ever put forward to fight forest loss." A Story of Dilution The regulation's dilution is seen by critics as the EU walking back its environmental promises. The proposal encountered significant delays, reportedly over technical problems, which drew condemnation. "By reopening this file rather than fixing a simple IT problem, authorities invited political interference," commented the Green MEP. In its first draft, the law required companies to track commodities back to their specific geographic origin using geolocation data, making them liable for forest loss along their supply lines with penalties and hefty fines. "This was not red tape for its own sake," the former official explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks." Mounting Pressure Yet, the strict due diligence triggered a backlash in Brussels from multinational corporations, exporting nations, conservative political groups and member states with forestry industries. Analysts point to last year's European Parliament elections as a decisive moment, shifting the balance of power more skeptical of green regulations. "Additional intense pressure has come from major export markets like the United States," noted expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks. The Weakened Final Text The passed law features several critical weakenings: 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 “high risk” scrutiny. "Instead of tightening rules for companies, it rolled them back," said Schally. "Moving obligations to producers, it reduced accountability." Uncertainty for Companies The delays and changes have also caused frustration for companies that prepared in advance. "It is very frustrating because we put a lot of effort into complying," stated Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown." The Commission's Stance An EU representative supported the final law, saying: "The commission has responded to feedback and acted 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 regulation."