🔗 Share this article European Union Deforestation Regulation Effectively 'Dismantled' Despite High Hopes Widely celebrated as a pioneering law that would curb the worldwide scourge of forest loss. However, the final version of the EU's deforestation regulation, previously touted as the flagship policy of the Green Deal, has emerged in a severely weakened state, leading to alarm from its initial author and green lawmakers. "The regulation was stripped," stated Hugo Schally, pointing to the removal of key obligations for later-stage companies to check the origin of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee. Schally cautioned that fewer obligated actors, less information collected, and imprecise sourcing details would complicate the task of authorities. A Watered-Down Law Environmental vice-president Marie Toussaint was more blunt, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "systematic weakening" of the law. This final text stands in stark contrast to the demands of more than a million EU citizens who signed a petition in 2020 demanding a prohibition of goods linked to forest destruction. At its launch in 2021, the EU's climate chief Frans Timmermans called it "the most ambitious law ever put forward to fight forest loss." From Ambition to Compromise The law's unravelling is seen by critics as the European Union retreating from its green talk. The proposal encountered two major postponements, reportedly over technical problems, which drew condemnation. "By reopening this file instead of solving a simple IT problem, authorities invited political interference," remarked the Green MEP. Originally, the regulation 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 criminal charges and hefty fines. "It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that ensured enforcement, established traceability, and prevented firms from obscuring their activities behind opaque production networks." Intense Lobbying Yet, the strict due diligence provoked opposition in Brussels from multinational corporations, exporting nations, conservative political groups and member states with forestry industries. Analysts point to last year's EU elections as a turning point, shifting the balance of power more skeptical of environmental rules. "Additional intense pressure has come from big trading partners outside the EU," said corporate sustainability professor, suggesting the EU yielded to some demands in trade talks. Key Loopholes Introduced In the final legislation includes several critical weakenings: Downstream operators were largely freed from conducting rigorous checks. A new exemption for small operators was created. A window for further "simplifications" was established for next spring. Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny. "Rather than strengthening rules for companies, it stripped them back," said the law's author. "Moving obligations to producers, it reduced accountability." Business Frustration 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," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a major letdown." The Commission's Stance A commission spokesperson supported the final law, stating: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced implementation." "The revised regulation provides for predictability, which is key for business and national regulators to effectively enforce this very important regulation."