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It was a groundbreaking regulation that would curb the worldwide crisis of deforestation.

But, the final version of the European Union's deforestation regulation, once heralded as the crown jewel of the European Green Deal, has emerged in a severely weakened state, leading to criticism from its original architect and environmental politicians.

"It has been stripped," stated Hugo Schally, pointing to the removal of key obligations for later-stage companies to check the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that fewer obligated actors, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

A Watered-Down Law

Green party vice-president a leading green politician was more blunt, labeling the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

This outcome is a far cry from the hopes of more than a million European citizens who supported an initiative in 2020 demanding a prohibition of goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner Frans Timmermans called it "the most ambitious law proposed to combat deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the European Union retreating from its green talk. It faced significant delays, reportedly over IT issues, which sparked criticism.

"By revisiting the legislation instead of solving a simple IT problem, the commission opened Pandora’s box," commented Toussaint.

Originally, the law required companies to track goods 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 said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the rigorous checks triggered a backlash in Brussels from large companies, producer countries, rightwing parties and member states with forestry industries.

Experts cite last year's European Parliament elections as a turning point, creating a new political majority less favorable toward environmental rules.

"Additional intense pressure has come from major export markets outside the EU," said expert Andreas Rasche, implying the EU yielded to some requests during negotiations.

The Weakened Final Text

In the final legislation features several critical weakenings:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Rather than strengthening rules for companies, it stripped them back," said the law's author. "By shifting responsibilities to producers, it lessened the number of responsible firms."

Uncertainty for Companies

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

"It is very frustrating because we invested significant resources into complying," 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

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

"The new text ensures stability, which is key for business and competent authorities to effectively enforce this very important law."