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Originally hailed as a pioneering law that would curb the worldwide crisis of forest loss.

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

"It has been stripped," said the law's original author, pointing to the removal of crucial requirements for downstream traders to verify the provenance of commodities 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 complicate the task of authorities.

A Watered-Down Law

Green party MEP Marie Toussaint went further, describing the postponements, exceptions and new loopholes – including one for paper goods – as the "systematic weakening" of the law.

This final text is a far cry from the hopes of more than a million European citizens who supported an initiative in 2020 demanding a prohibition of goods linked to forest destruction.

When launched in 2021, the EU's climate chief Frans Timmermans called it "the most ambitious law proposed to fight deforestation."

A Story of Dilution

The regulation's dilution has been interpreted as the European Union retreating from its green talk. It faced significant delays, ostensibly over technical problems, which sparked criticism.

"By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," remarked the Green MEP.

Originally, the regulation mandated that firms to track goods back to their specific geographic origin using geolocation data, making them liable for forest loss along their supply lines with criminal charges and hefty fines.

"It wasn't bureaucracy for its own sake," Schally explained. "These rules were the tool that made the rules enforceable, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the rigorous checks provoked opposition in Brussels from multinational corporations, exporting nations, rightwing parties and EU logging states.

Experts cite last year's EU elections as a decisive moment, shifting the balance of power more skeptical of environmental rules.

"The other pressure came from major export markets like the United States," said expert Andreas Rasche, implying the EU yielded to some requests during negotiations.

Key Loopholes Introduced

In the final legislation includes several critical weakenings:

• 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 four countries – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it rolled them back," said the law's author. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance 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

An EU representative defended the outcome, stating: "We have listened to feedback and taken action to ensure a pragmatic and balanced application."

"The revised regulation ensures stability, which is crucial for companies and competent authorities to effectively enforce this vitally important regulation."