🔗 Share this article European Union Anti-Deforestation Regulation Effectively 'Watered Down' After Initial Fanfare It was a landmark piece of legislation that would curb the global crisis of deforestation. However, the revised version of the European Union's deforestation regulation, once heralded as the crown jewel of the European Green Deal, has emerged in a significantly diluted state, leading to alarm from its initial author and green lawmakers. "It has been stripped," said Hugo Schally, 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, fewer data points, and less precise origin data would make enforcement and prosecution more difficult. A Watered-Down Law Environmental vice-president a leading green politician went further, describing the postponements, exceptions and new loopholes – including 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 EU citizens who signed a petition in 2020 demanding a ban on deforestation-linked products. When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious law ever put forward to combat deforestation." From Ambition to Compromise The regulation's dilution is seen by critics as the European Union retreating from its green talk. The proposal encountered significant delays, reportedly over technical problems, which sparked criticism. "By revisiting the legislation rather than fixing a simple IT problem, the commission opened Pandora’s box," remarked the Green MEP. Originally, the regulation mandated that firms to track goods back to their exact plot of land using geolocation data, making them liable for deforestation in their supply chains with criminal charges and large financial penalties. "It wasn't bureaucracy for its own sake," Schally said. "These rules were the tool that ensured enforcement, established traceability, and prevented firms from obscuring their activities behind complex supply chains." Intense Lobbying However, the rigorous checks triggered a backlash in Brussels from large companies, producer countries, rightwing parties and member states with forestry industries. Experts cite last year's EU elections as a turning point, creating a new political majority less favorable toward green regulations. "The other pressure has come from big trading partners outside the EU," said corporate sustainability professor, suggesting the EU yielded to some demands in trade talks. Key Loopholes Introduced The passed law features several critical weakenings: Downstream operators were mostly exempted from submitting due diligence statements. A new “low risk” category was created. 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 downstream obligations, it rolled them back," said the law's author. "By shifting responsibilities to producers, it lessened the number of responsible firms." Business Frustration The delays and changes have also caused frustration for companies that prepared in advance. "It is very frustrating because we put a lot of effort into preparing," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a big frustration." Official Defense An EU representative defended the outcome, saying: "The commission has responded to concerns and taken action to ensure a simple, fair and cost-efficient application." "The revised regulation ensures stability, which is crucial for companies and national regulators to successfully implement this vitally important law."