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It was a groundbreaking law that would help stop the worldwide crisis of deforestation.

But, the final version of the EU's deforestation regulation, previously heralded as the crown jewel of the Green Deal, has emerged in a severely weakened state, prompting alarm from its original architect and green lawmakers.

"It has been gutted," stated Hugo Schally, pointing to the removal of key obligations for downstream traders to check the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

Political Dismantling

Green party MEP Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – such as one for printed products – as the "systematic weakening" of the law.

This final text stands in stark contrast to the hopes of over 1.2 million European citizens who supported an initiative in 2020 demanding a ban on goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the toughest legislation ever put forward to combat deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the EU walking back its environmental promises. The proposal encountered two major postponements, reportedly over IT issues, which sparked criticism.

"By reopening this file instead of solving a technical issue, authorities invited political interference," commented Toussaint.

Originally, the regulation required companies to trace goods back to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," Schally explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks."

Mounting Pressure

Yet, the strict due diligence provoked opposition in Brussels from multinational corporations, producer countries, rightwing parties and member states with forestry industries.

Analysts point to last year's EU elections as a decisive moment, creating a new political majority more skeptical of environmental rules.

"The other pressure came from big trading partners like the United States," noted expert Andreas Rasche, implying the EU yielded to some requests during negotiations.

The Weakened Final Text

In the final legislation features key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new “low risk” category was introduced.
• A window for further "simplifications" was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring.

"Instead of tightening rules for companies, it rolled them back," lamented Schally. "Moving obligations to producers, it reduced accountability."

Business Frustration

The protracted process and revisions have also caused frustration for businesses that complied early.

"We feel very annoyed because we put a lot of effort into preparing," said a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a major letdown."

The Commission's Stance

A commission spokesperson supported the final law, saying: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation ensures stability, which is crucial for companies and national regulators to successfully implement this vitally important regulation."