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Widely celebrated as a landmark law that would curb the global scourge of forest loss.

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

"It has been hollowed out," said the law's original author, citing the removal of key obligations for later-stage companies to check the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, less information collected, and less precise origin data would make enforcement and prosecution more difficult.

Political Dismantling

Green party vice-president a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – such as one for paper goods – as the "systematic weakening" 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 calling for a ban on deforestation-linked products.

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the toughest law proposed to combat forest loss."

A Story of Dilution

The law's unravelling has been interpreted as the European Union retreating from its environmental promises. It faced significant delays, ostensibly over IT issues, which sparked criticism.

"By reopening this file rather than fixing a technical issue, the commission opened Pandora’s box," remarked Toussaint.

Originally, the regulation mandated that firms to track goods to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

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

Experts cite last year's European Parliament elections as a turning point, creating a new political majority less favorable toward environmental rules.

"The other pressure came from big trading partners outside the EU," noted expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

Key Loopholes Introduced

The passed law includes key dilutions:

• Downstream operators were largely freed from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened 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 upstream, it reduced accountability."

Uncertainty for Companies

The protracted process and revisions have also caused frustration for companies that prepared in advance.

"It is very frustrating because we put a lot of effort 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 supported the final law, saying: "We have listened to feedback and taken action to ensure a pragmatic and balanced implementation."

"The new text ensures stability, which is crucial for companies and competent authorities to effectively enforce this very important law."