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It was a groundbreaking law that would help stop the global crisis of forest loss.

But, the final version of the European Union's deforestation regulation, previously heralded as the flagship policy of the European Green Deal, has emerged in a severely weakened state, prompting criticism from its initial author and environmental politicians.

"It has been stripped," stated the law's original author, citing the exclusion of crucial requirements for downstream traders to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, less information collected, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Green party MEP Marie Toussaint went further, labeling the postponements, exceptions and new loopholes – including one for printed products – as the "political dismantling" of the law.

This final text stands in stark contrast to the demands of more than a million European citizens who supported an initiative in 2020 calling for a prohibition of goods linked to forest destruction.

When launched in 2021, the EU's climate chief Frans Timmermans called it "the toughest legislation proposed to fight forest loss."

From Ambition to Compromise

The law's unravelling is seen by critics as the EU walking back its green talk. It faced significant delays, reportedly over IT issues, which drew condemnation.

"By revisiting the legislation instead of solving a technical issue, the commission opened Pandora’s box," commented Toussaint.

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

"This was not red tape for its own sake," the former official said. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the strict due diligence triggered a backlash in Brussels from multinational corporations, exporting nations, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a decisive moment, shifting the balance of power less favorable toward green regulations.

"The other pressure has come from big trading partners like the United States," noted corporate sustainability professor, suggesting the EU yielded to some requests during negotiations.

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 – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Instead of tightening downstream obligations, it rolled them back," said the law's author. "Moving obligations to producers, it lessened the number of responsible firms."

Uncertainty for Companies

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we invested significant resources into preparing," 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."

Official Defense

A commission spokesperson defended the outcome, stating: "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 vitally important law."