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Originally hailed as a pioneering piece of legislation that would help stop the worldwide crisis of deforestation.

However, the final version of the European Union's deforestation regulation, once touted as the crown jewel of the Green Deal, has emerged in a significantly diluted state, prompting alarm from its original architect and environmental politicians.

"It has been stripped," said the law's original author, 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, fewer data points, and less precise origin data would complicate the task of authorities.

A Watered-Down Law

Green party vice-president Marie Toussaint was more blunt, labeling 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 demands of over 1.2 million EU citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the toughest law proposed to combat deforestation."

From Ambition to Compromise

The law's unravelling has been interpreted as the European Union retreating from its environmental promises. The proposal encountered two major postponements, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, the commission opened Pandora’s box," commented Toussaint.

In its first draft, the law required companies to track commodities to their exact plot of land using GPS coordinates, making them liable for deforestation in their supply chains with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks."

Mounting Pressure

However, the rigorous checks triggered a backlash in the EU capital from large companies, producer countries, rightwing parties and EU logging states.

Analysts point to last year's EU elections as a turning point, creating a new political majority more skeptical of green regulations.

"Additional intense pressure has come from big trading partners like the United States," said corporate sustainability professor, suggesting the commission gave in to some requests during negotiations.

Key Loopholes Introduced

In the final legislation features several critical weakenings:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new “low risk” category was created.
• A window for further "simplifications" was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it rolled them back," lamented Schally. "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.

"We feel very annoyed because we invested significant resources into complying," stated 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."

Official Defense

An EU representative defended the outcome, saying: "The commission has responded to concerns and acted to ensure a pragmatic and balanced implementation."

"The revised regulation ensures stability, which is crucial for companies and competent authorities to successfully implement this very important law."