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It was a groundbreaking regulation that would curb the global scourge of forest loss.

However, the revised version of the European Union's deforestation regulation, once heralded as the flagship policy of the European Green Deal, has emerged in a severely weakened state, prompting alarm from its initial author and environmental politicians.

"It has been hollowed out," stated Hugo Schally, citing the removal of key obligations for later-stage companies to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data 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 printed products – as the "political dismantling" of the law.

This final text stands in stark contrast to the hopes of over 1.2 million EU citizens who supported an initiative in 2020 calling for a ban on deforestation-linked products.

At its launch in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious legislation proposed to combat deforestation."

From Ambition to Compromise

The law's unravelling has been interpreted as the EU walking back its environmental promises. The proposal encountered two major postponements, ostensibly over technical problems, which drew condemnation.

"By reopening this file instead of solving a simple IT problem, authorities invited political interference," commented the Green MEP.

Originally, the regulation required companies to trace goods to their specific geographic origin using geolocation data, 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 said. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

However, the rigorous checks provoked opposition in Brussels from large companies, producer countries, conservative political groups and EU logging states.

Experts cite last year's European Parliament elections as a turning point, creating a new political majority less favorable toward green regulations.

"Additional intense pressure came from big trading partners like the United States," said expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law includes several critical weakenings:

• Downstream operators were largely freed from conducting rigorous checks.
• A new “low risk” category was created.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," lamented Schally. "By shifting responsibilities upstream, 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 preparing," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a major letdown."

The Commission's Stance

A commission spokesperson defended the outcome, saying: "The commission has responded to concerns and taken action to ensure a simple, fair and cost-efficient implementation."

"The new text ensures stability, which is key for business and national regulators to successfully implement this vitally important regulation."