🔗 Share this article EU Deforestation Regulation Effectively 'Gutted' Despite High Hopes Originally hailed as a landmark piece of legislation that would combat the worldwide crisis of deforestation. But, the final version of the EU's anti-deforestation law, once heralded as the crown jewel of the Green Deal, has been passed in a severely weakened state, prompting alarm from its initial author and green lawmakers. "It has been stripped," stated the law's original author, citing the exclusion of key obligations for later-stage companies to check the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber. He warned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would complicate the task of authorities. Political Dismantling Green party vice-president Marie Toussaint went further, describing the delays, loopholes and exemptions – such as one for printed products – 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 demanding a prohibition of goods linked to forest destruction. When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious law proposed to fight deforestation." From Ambition to Compromise The law's unravelling is seen by critics as the European Union retreating from its environmental promises. It faced significant delays, reportedly over technical problems, which sparked criticism. "By revisiting the legislation rather than fixing a technical issue, the commission opened Pandora’s box," remarked Toussaint. Originally, the regulation required companies to track goods to their specific geographic origin using geolocation data, making them liable for forest loss along their supply lines with criminal charges and large financial penalties. "It wasn't bureaucracy for its own sake," the former official said. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks." Mounting Pressure However, the rigorous checks provoked opposition in the EU capital from multinational corporations, producer countries, rightwing parties and member states with forestry industries. Analysts point to last year's European Parliament elections as a decisive moment, creating a new political majority less favorable toward environmental rules. "The other pressure has come from major export markets outside the EU," noted corporate sustainability professor, suggesting the commission gave in to some demands in trade talks. Key Loopholes Introduced In the final legislation includes several critical weakenings: Downstream operators were mostly exempted from submitting due diligence statements. A new exemption for small operators was introduced. A window for further "simplifications" was established for next spring. Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny. "Rather than strengthening rules for companies, it stripped them back," lamented the law's author. "Moving obligations to producers, it reduced accountability." Uncertainty for Companies The delays and changes have also caused frustration for businesses that complied early. "It is very frustrating because we put a lot of effort into complying," said a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown." The Commission's Stance A commission spokesperson defended the outcome, stating: "We have listened to concerns and acted to ensure a pragmatic and balanced implementation." "The revised regulation provides for predictability, which is crucial for companies and national regulators to effectively enforce this very important law."