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It was a pioneering law that would combat the global crisis of deforestation.

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

"It has been hollowed out," said the law's original author, pointing to the exclusion of crucial requirements for later-stage companies to verify the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that a reduced number of responsible companies, fewer data points, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Environmental vice-president Marie Toussaint went further, labeling the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

This final text is a far cry from the hopes of over 1.2 million EU citizens who signed a petition in 2020 demanding a ban on goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner Frans Timmermans called it "the toughest legislation proposed 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. It faced two major postponements, reportedly over IT issues, which sparked criticism.

"By revisiting the legislation rather than fixing a simple IT problem, the commission opened Pandora’s box," commented Toussaint.

Originally, the regulation mandated that firms to track 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 said. "It was the mechanism that made the rules enforceable, established traceability, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

However, the rigorous checks triggered a backlash in Brussels from multinational corporations, exporting nations, conservative political groups and EU logging states.

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

"The other pressure has come from major export markets like the United States," said expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

In the final legislation features key dilutions:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A option for more reductions was established for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it rolled 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 caused frustration for companies that prepared in advance.

"It is very frustrating because we invested significant resources into complying," said a coffee company executive. "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, saying: "The commission has responded to feedback and taken action to ensure a simple, fair and cost-efficient application."

"The revised regulation ensures stability, which is crucial for companies and national regulators to successfully implement this vitally important regulation."