🔗 Share this article European Union Deforestation Regulation Largely 'Gutted' After High Hopes Widely celebrated as a groundbreaking regulation that would combat the worldwide scourge of forest loss. However, the final version of the EU's deforestation regulation, previously touted as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, leading to alarm from its original architect and environmental politicians. "It has been stripped," stated Hugo Schally, pointing to the removal of key obligations for later-stage companies to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber. Schally cautioned 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 Marie Toussaint went further, describing the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law. This final text is a far cry from the demands of more than a million EU citizens who signed a petition in 2020 demanding a ban on goods linked to forest destruction. At its launch in 2021, the EU's climate chief the European commissioner trumpeted it as "the toughest law ever put forward to fight deforestation." From Ambition to Compromise The regulation's dilution has been interpreted as the EU walking back its environmental promises. It faced two major postponements, ostensibly over IT issues, which drew condemnation. "By reopening this file instead of solving a simple IT problem, authorities invited political interference," remarked the Green MEP. Originally, the regulation required companies to track commodities back to their exact plot of land using GPS coordinates, making them liable for deforestation in their supply chains with criminal charges and hefty fines. "This was not red tape for its own sake," the former official explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains." Intense Lobbying However, the strict due diligence provoked opposition in Brussels from large companies, exporting nations, conservative political groups and EU logging states. Experts cite last year's EU elections as a decisive moment, shifting the balance of power more skeptical of green regulations. "Additional intense pressure came from major export markets like the United States," noted expert Andreas Rasche, implying the EU yielded to some demands in trade talks. 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 option for more reductions was established for next spring. Only a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring. "Rather than strengthening rules for companies, it rolled them back," lamented Schally. "Moving obligations upstream, it reduced accountability." Business Frustration The delays and changes have also created annoyance 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 major letdown." The Commission's Stance An EU representative defended the outcome, saying: "We have listened to concerns and taken action to ensure a simple, fair and cost-efficient application." "The revised regulation provides for predictability, which is key for business and national regulators to successfully implement this very important law."