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Originally hailed as a landmark regulation that would curb the global scourge of deforestation.

However, the final version of the EU's deforestation regulation, once heralded as the crown jewel of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its initial author and environmental politicians.

"It has been gutted," said the law's original author, pointing to the removal of crucial requirements for later-stage companies to check the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that a reduced number of responsible companies, fewer data points, and less precise origin data would make enforcement and prosecution more difficult.

A Watered-Down Law

Environmental vice-president Marie Toussaint went further, labeling the postponements, exceptions and new loopholes – such as one for printed products – 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 signed a petition in 2020 calling for a prohibition of goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner Frans Timmermans 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 two major postponements, reportedly over IT issues, which sparked criticism.

"By revisiting the legislation instead of solving a simple IT problem, authorities invited political interference," commented the Green MEP.

Originally, the law mandated that firms to trace goods to their specific geographic origin using GPS coordinates, making them liable for forest loss along their supply lines with criminal charges and hefty fines.

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

Intense Lobbying

However, the rigorous checks triggered a backlash in the EU capital from large companies, exporting nations, conservative political groups and EU logging states.

Experts cite last year's EU elections as a turning point, creating a new political majority less favorable toward green regulations.

"Additional intense pressure has come from major export markets outside the EU," said corporate sustainability professor, implying the commission gave in to some requests during negotiations.

Key Loopholes Introduced

The passed law features several critical weakenings:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was opened 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," lamented the law's author. "By shifting responsibilities upstream, it lessened the number of responsible firms."

Uncertainty for Companies

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 complying," said a coffee company executive. "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 application."

"The new text ensures stability, which is crucial for companies and competent authorities to effectively enforce this vitally important regulation."