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Widely celebrated as a groundbreaking piece of legislation that would curb the global crisis of deforestation.

But, the revised version of the EU's deforestation regulation, once touted as the crown jewel of the European Green Deal, has been passed in a severely weakened state, prompting alarm from its original architect and green lawmakers.

"It has been hollowed out," stated Hugo Schally, citing the removal of crucial requirements for later-stage companies to verify the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

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

Political Dismantling

Green party MEP Marie Toussaint went further, describing the postponements, exceptions and new loopholes – such as one for paper goods – as the "systematic weakening" of the law.

This outcome stands in stark contrast to the demands of over 1.2 million EU citizens who supported an initiative in 2020 calling for a prohibition of deforestation-linked products.

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the toughest law proposed to fight deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its environmental promises. The proposal encountered two major postponements, ostensibly over IT issues, which drew condemnation.

"By reopening this file rather than fixing a simple IT problem, authorities invited political interference," commented Toussaint.

Originally, the law mandated that firms to trace commodities back to their exact plot of land using GPS coordinates, making them liable for deforestation in their supply chains with penalties and large financial penalties.

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

Intense Lobbying

However, the rigorous checks triggered a backlash in Brussels from multinational corporations, exporting nations, rightwing parties and EU logging states.

Analysts point to last year's European Parliament elections as a turning point, shifting the balance of power more skeptical of green regulations.

"Additional intense pressure has come from major export markets outside the EU," said expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks.

The Weakened Final Text

The passed law includes several critical weakenings:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A option for more reductions was established for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Instead of tightening downstream obligations, it rolled them back," lamented the law's author. "Moving obligations to producers, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also caused frustration for businesses that complied early.

"We feel very annoyed because we put a lot of effort into preparing," stated a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a big frustration."

Official Defense

A commission spokesperson supported the final law, saying: "We have listened to feedback and taken action to ensure a pragmatic and balanced application."

"The revised regulation ensures stability, which is key for business and national regulators to effectively enforce this vitally important law."