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Widely celebrated as a landmark law that would combat the worldwide crisis of forest loss.

But, the revised version of the European Union's deforestation regulation, once heralded as the flagship policy of the European Green Deal, has been passed in a severely weakened state, leading to criticism from its original architect and green lawmakers.

"The regulation was hollowed out," stated the law's original author, pointing to the exclusion of crucial requirements for downstream traders to check the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would hinder monitoring and legal action.

A Watered-Down Law

Environmental vice-president a leading green politician was more blunt, describing the delays, loopholes and exemptions – such as one for paper goods – as the "political dismantling" of the law.

This outcome is a far cry from the demands of over 1.2 million EU citizens who supported an initiative in 2020 calling for a prohibition of goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the toughest legislation proposed to combat forest loss."

From Ambition to Compromise

The regulation's dilution is seen by critics as the EU walking back its green talk. The proposal encountered significant delays, ostensibly over technical problems, which drew condemnation.

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

Originally, the law required companies to trace goods to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Intense Lobbying

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

Analysts point to last year's EU 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 EU yielded to some requests during negotiations.

Key Loopholes Introduced

The passed law includes key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A option for more reductions was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening downstream obligations, it stripped them back," lamented the law's author. "By shifting responsibilities to producers, it lessened the number of responsible firms."

Business Frustration

The protracted process and revisions have also caused frustration for businesses that complied early.

"We feel very annoyed because we invested significant resources into preparing," said 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

An EU representative defended the outcome, stating: "We have listened to feedback and taken action to ensure a pragmatic and balanced application."

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