🔗 Share this article EU Deforestation Law Largely 'Dismantled' Despite Initial Fanfare Widely celebrated as a pioneering law that would help stop the global scourge of deforestation. But, the revised version of the EU's deforestation regulation, once heralded as the crown jewel of the Green Deal, has been passed in a significantly diluted state, leading to alarm from its original architect and environmental politicians. "The regulation was gutted," said the law's original author, pointing to the exclusion of key obligations for downstream traders to check the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee. He warned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult. Political Dismantling Environmental MEP Marie Toussaint went further, labeling the delays, loopholes and exemptions – including one for printed products – as the "systematic weakening" of the law. This final text is a far cry from the demands of more than a million European citizens who signed a petition in 2020 calling for a prohibition of deforestation-linked products. At its launch in 2021, then-Green Deal commissioner the European commissioner called it "the toughest legislation proposed to combat deforestation." A Story of Dilution The regulation's dilution is seen by critics as the EU walking back its environmental promises. It faced significant delays, ostensibly over technical problems, which drew condemnation. "By reopening this file instead of solving a technical issue, the commission opened Pandora’s box," commented the Green MEP. Originally, the law mandated that firms to trace goods to their specific geographic origin using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and hefty fines. "It wasn't bureaucracy for its own sake," Schally explained. "It was the mechanism that ensured enforcement, established traceability, and prevented firms from obscuring their activities behind complex supply chains." Intense Lobbying Yet, the rigorous checks provoked opposition in the EU capital from large companies, exporting nations, rightwing parties and EU logging states. Analysts point to last year's European Parliament elections as a turning point, creating a new political majority less favorable toward green regulations. "The other pressure came from big trading partners like the United States," noted expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks. Key Loopholes Introduced The passed law includes several critical weakenings: Downstream operators were mostly exempted from submitting due diligence statements. A new exemption for small operators was created. A window for further "simplifications" was established for next spring. Only a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring. "Instead of tightening rules for companies, it stripped them back," lamented the law's author. "Moving obligations 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. "It is very frustrating because we invested significant resources into preparing," 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." The Commission's Stance A commission spokesperson supported the final law, saying: "We have listened to concerns 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 vitally important regulation."