🔗 Share this article EU Anti-Deforestation Regulation Effectively 'Watered Down' After High Hopes Widely celebrated as a landmark piece of legislation that would help stop the global scourge of forest loss. However, the revised version of the EU's deforestation regulation, once heralded as the flagship policy of the Green Deal, has been passed in a severely weakened state, leading to alarm from its initial author and green lawmakers. "The regulation was 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. He warned that fewer obligated actors, fewer data points, and imprecise sourcing details would make enforcement and prosecution more difficult. Political Dismantling Environmental vice-president a leading green politician went further, labeling the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" 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 calling for a ban on goods linked to forest destruction. When launched in 2021, the EU's climate chief Frans Timmermans called it "the toughest law ever put forward to fight forest loss." A Story of Dilution The law's unravelling is seen by critics as the EU walking back its green talk. The proposal encountered significant delays, reportedly over technical problems, which sparked criticism. "By reopening this file rather than fixing a technical issue, authorities invited political interference," commented Toussaint. Originally, the regulation required companies to track commodities to their specific geographic origin using GPS coordinates, holding them accountable for deforestation in their supply chains with criminal charges and hefty fines. "It wasn't bureaucracy for its own sake," Schally said. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks." Mounting Pressure However, the strict due diligence triggered a backlash in Brussels from multinational corporations, exporting nations, rightwing parties and EU logging states. Experts cite last year's European Parliament elections as a turning point, creating a new political majority more skeptical of environmental rules. "Additional intense pressure has come from major export markets outside the EU," said corporate sustainability professor, suggesting the EU yielded to some requests during negotiations. Key Loopholes Introduced In the final legislation includes 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. "Instead of tightening rules for companies, it stripped them back," said the law's author. "By shifting responsibilities upstream, it reduced accountability." 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 complying," stated a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a big frustration." Official Defense An EU representative supported the final law, saying: "We have listened to concerns and acted to ensure a pragmatic and balanced implementation." "The new text ensures stability, which is key for business and competent authorities to successfully implement this vitally important law."