🔗 Share this article EU Deforestation Regulation Effectively 'Watered Down' Despite High Hopes Widely celebrated as a landmark regulation that would help stop the worldwide crisis of forest loss. But, the revised version of the EU's deforestation regulation, previously touted as the crown jewel of the European Green Deal, has been passed in a severely weakened state, prompting alarm from its original architect and green lawmakers. "The regulation was stripped," stated Hugo Schally, citing 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 fewer obligated actors, fewer data points, and less precise origin data would complicate the task of authorities. A Watered-Down Law Green party vice-president Marie Toussaint went further, describing the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law. This outcome stands in stark contrast to the demands of over 1.2 million European citizens who signed a petition in 2020 demanding a ban on deforestation-linked products. When launched in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the toughest law proposed to fight deforestation." From Ambition to Compromise The law's unravelling is seen by critics as the European Union retreating from its green talk. The proposal encountered significant delays, reportedly over IT issues, which sparked criticism. "By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," remarked Toussaint. Originally, the law mandated that firms to track goods to their specific geographic origin using GPS coordinates, holding them accountable for deforestation in their supply chains with criminal charges and large financial penalties. "This was not red tape for its own sake," Schally explained. "It was the mechanism that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains." Intense Lobbying Yet, the rigorous checks provoked opposition in Brussels from multinational corporations, exporting nations, rightwing parties and member states with forestry industries. Experts cite last year's EU elections as a decisive moment, creating a new political majority less favorable toward environmental rules. "Additional intense pressure came from big trading partners outside the EU," said expert Andreas Rasche, implying the EU yielded to some requests during negotiations. Key Loopholes Introduced In the final legislation features key dilutions: Downstream operators were largely freed from submitting due diligence statements. A new “low risk” category was introduced. A option for more reductions was opened 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 stripped them back," said Schally. "Moving obligations to producers, it lessened the number of responsible firms." Business Frustration The protracted process and revisions have also caused frustration for companies that prepared in advance. "We feel very annoyed because we put a lot of effort 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 major letdown." Official Defense An EU representative supported the final law, saying: "The commission has responded to concerns and taken action to ensure a pragmatic and balanced implementation." "The new text ensures stability, which is key for business and competent authorities to successfully implement this very important regulation."