🔗 Share this article European Union Deforestation Law Effectively 'Watered Down' Despite High Hopes Originally hailed as a groundbreaking law that would combat the worldwide crisis of deforestation. However, the revised version of the EU's deforestation regulation, previously touted as the flagship policy of the Green Deal, has emerged in a severely weakened state, prompting alarm from its original architect and green lawmakers. "It has been gutted," said Hugo Schally, citing the exclusion of crucial requirements for downstream traders to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber. Schally cautioned that fewer obligated actors, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult. Political Dismantling Green party vice-president Marie Toussaint was more blunt, describing 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 signed a petition in 2020 calling for a prohibition of goods linked to forest destruction. At its launch in 2021, the EU's climate chief Frans Timmermans called it "the toughest legislation ever put forward to fight deforestation." A Story of Dilution The regulation's dilution has been interpreted as the EU walking back its green talk. It faced two major postponements, ostensibly over IT issues, which drew condemnation. "By reopening this file rather than fixing a technical issue, authorities invited political interference," commented the Green MEP. In its first draft, the law mandated that firms to trace commodities to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with penalties and hefty fines. "It wasn't bureaucracy for its own sake," the former official said. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains." Intense Lobbying However, the strict due diligence provoked opposition in Brussels from multinational corporations, producer countries, rightwing parties and EU logging states. Analysts point to last year's European Parliament elections as a turning point, creating a new political majority more skeptical of environmental rules. "Additional intense pressure came from major export markets like the United States," said expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks. Key Loopholes Introduced In the final legislation includes key dilutions: Retailers and traders were largely freed from submitting due diligence statements. A new “low risk” category was introduced. A option for more reductions was established for next spring. Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring. "Instead of tightening rules for companies, it rolled them back," lamented Schally. "Moving obligations upstream, it reduced accountability." Business Frustration The delays and changes have also caused frustration for businesses that complied early. "We feel very annoyed because we put a lot of effort into preparing," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration." The Commission's Stance An EU representative defended the outcome, saying: "We have listened to feedback and acted to ensure a pragmatic and balanced application." "The new text ensures stability, which is crucial for companies and national regulators to successfully implement this very important law."