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It was a pioneering piece of legislation that would combat the worldwide crisis of deforestation.

But, the revised version of the EU's deforestation regulation, previously heralded as the flagship policy of the Green Deal, has emerged in a significantly diluted state, leading to alarm from its original architect and environmental politicians.

"The regulation was hollowed out," stated the law's original author, citing the removal of key obligations for downstream traders to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

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

A Watered-Down Law

Green party vice-president a leading green politician went further, describing the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law.

This outcome stands in stark contrast to the hopes of more than a million European citizens who supported an initiative in 2020 demanding a ban on goods linked to forest destruction.

At its launch in 2021, the EU's climate chief the European commissioner called it "the most ambitious legislation ever put forward to fight deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its environmental promises. The proposal encountered significant delays, ostensibly over IT issues, which drew condemnation.

"By reopening this file instead of solving a technical issue, authorities invited political interference," commented Toussaint.

In its first draft, the law required companies to track goods to their exact plot of land using geolocation data, making them liable for forest loss along their supply lines with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," the former official explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the strict due diligence triggered a backlash in Brussels from multinational corporations, producer countries, conservative political groups and EU logging states.

Analysts point to last year's EU elections as a turning point, creating a new political majority less favorable toward green regulations.

"Additional intense pressure came from major export markets like the United States," said expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

Key Loopholes Introduced

In the final legislation includes key dilutions:

• Retailers and traders were largely freed from submitting due diligence statements.
• A new exemption for small operators was created.
• A option for more reductions was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening downstream obligations, it rolled them back," said the law's author. "By shifting responsibilities upstream, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"It is very frustrating because we invested significant resources into preparing," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown."

Official Defense

A commission spokesperson supported the final law, stating: "We have listened to feedback and taken action to ensure a simple, fair and cost-efficient implementation."

"The new text provides for predictability, which is crucial for companies and national regulators to effectively enforce this very important law."