🔗 Share this article European Union Deforestation Law Largely 'Watered Down' Despite Initial Fanfare Widely celebrated as a pioneering piece of legislation that would help stop the worldwide crisis of deforestation. But, the final version of the EU's deforestation regulation, once touted as the flagship policy of the European Green Deal, has emerged in a significantly diluted state, leading to criticism from its original architect and green lawmakers. "It has been stripped," said the law's original author, citing the removal of key obligations for downstream traders to check the provenance 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 Green party MEP a leading green politician went further, labeling the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law. This final text is a far cry from the hopes of over 1.2 million European citizens who supported an initiative in 2020 demanding a ban on goods linked to forest destruction. At its launch in 2021, then-Green Deal commissioner the European commissioner called it "the most ambitious law ever put forward to fight forest loss." A Story of Dilution The law's unravelling is seen by critics as the European Union retreating from its green talk. The proposal encountered significant delays, ostensibly over technical problems, which drew condemnation. "By reopening this file rather than fixing a simple IT problem, authorities invited political interference," commented the Green MEP. In its first draft, the regulation mandated that firms to track commodities to their specific geographic origin using geolocation data, holding them accountable for deforestation in their supply chains with penalties and hefty fines. "This was not red tape for its own sake," the former official explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains." Intense Lobbying However, the strict due diligence triggered a backlash in Brussels from large companies, producer countries, rightwing parties and EU logging states. Experts cite last year's EU elections as a turning point, creating a new political majority less favorable toward green regulations. "The other pressure came from major export markets outside the EU," said corporate sustainability professor, suggesting the commission gave in to some requests during negotiations. Key Loopholes Introduced In the final legislation features key dilutions: Retailers and traders were largely freed from conducting rigorous checks. A new “low risk” category was created. A option for more reductions was established 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 rolled them back," said the law's author. "Moving obligations to producers, it reduced accountability." Business Frustration The protracted process and revisions have also created annoyance for companies that prepared in advance. "It is very frustrating because we invested significant resources into preparing," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a big frustration." Official Defense An EU representative supported the final law, saying: "We have listened to concerns and taken action to ensure a simple, fair and cost-efficient application." "The new text provides for predictability, which is crucial for companies and competent authorities to successfully implement this very important law."