🔗 Share this article European Union Deforestation Regulation Largely 'Watered Down' Despite Initial Fanfare Originally hailed as a groundbreaking piece of legislation that would help stop the global crisis of forest loss. But, the revised version of the European Union's deforestation regulation, once heralded as the flagship policy of the Green Deal, has been passed in a significantly diluted state, prompting criticism from its initial author and green lawmakers. "The regulation was stripped," stated Hugo Schally, citing the removal of crucial requirements for downstream traders to check the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber. Schally cautioned that fewer obligated actors, less information collected, and less precise origin data would make enforcement and prosecution more difficult. A Watered-Down Law Green party MEP Marie Toussaint was more blunt, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "political dismantling" of the law. This final text stands in stark contrast to the hopes of over 1.2 million European 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 trumpeted it as "the toughest law ever put forward to combat forest loss." A Story of Dilution The regulation's dilution is seen by critics as the European Union retreating from its environmental promises. The proposal encountered two major postponements, reportedly over IT issues, which drew condemnation. "By reopening this file instead of solving a simple IT problem, authorities invited political interference," commented Toussaint. In its first draft, the law mandated that firms to track goods back to their exact plot of land using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and hefty fines. "This was not red tape for its own sake," the former official said. "It was the mechanism that made the rules enforceable, established traceability, and prevented firms from obscuring their activities behind complex supply chains." Intense Lobbying However, the rigorous checks provoked opposition in Brussels from large companies, exporting nations, conservative political groups and member states with forestry industries. Analysts point to last year's European Parliament elections as a turning point, shifting the balance of power more skeptical of environmental rules. "Additional intense pressure has come from major export markets like the United States," noted expert Andreas Rasche, implying the commission gave in to some demands in trade talks. Key Loopholes Introduced The passed law includes several critical weakenings: Retailers and traders were largely freed from submitting due diligence statements. 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 the strictest monitoring. "Instead of tightening downstream obligations, it rolled them back," lamented Schally. "Moving obligations upstream, it lessened the number of responsible firms." Business Frustration The delays and changes have also created annoyance for businesses that complied early. "We feel very annoyed because we invested significant resources 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." The Commission's Stance An EU representative defended the outcome, saying: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced implementation." "The new text ensures stability, which is key for business and competent authorities to successfully implement this very important law."