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Widely celebrated as a landmark piece of legislation that would curb the worldwide scourge of forest loss.

But, the final version of the European Union's deforestation regulation, once heralded as the crown jewel of the European Green Deal, has been passed in a significantly diluted state, leading to alarm from its initial author and environmental politicians.

"It has been hollowed out," said the law's original author, pointing to the removal of crucial requirements for later-stage companies to check the provenance of products 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 hinder monitoring and legal action.

Political Dismantling

Environmental vice-president Marie Toussaint was more blunt, labeling the postponements, exceptions and new loopholes – such as one for printed products – as the "political dismantling" of the law.

This final text stands in stark contrast to the hopes of more than a million EU citizens who supported an initiative in 2020 calling for a prohibition of deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans called it "the most ambitious law ever put forward to fight deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its green talk. It faced two major postponements, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, authorities invited political interference," remarked Toussaint.

Originally, the regulation required companies to trace goods back to their specific geographic origin using geolocation data, holding them accountable for forest loss along their supply lines with penalties and large financial penalties.

"This was not red tape for its own sake," the former official said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the strict due diligence provoked opposition in Brussels from large companies, producer countries, conservative political groups 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.

"Additional intense pressure has come from major export markets outside the EU," said expert Andreas Rasche, implying the EU yielded to some demands in trade talks.

The Weakened Final Text

The passed law features key dilutions:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new “low risk” category was created.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening downstream obligations, it rolled them back," lamented the law's author. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"It is very frustrating because we invested significant resources into complying," said 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

A commission spokesperson supported the final law, saying: "The commission has responded to feedback and taken action to ensure a simple, fair and cost-efficient implementation."

"The new text provides for predictability, which is crucial for companies and national regulators to successfully implement this vitally important regulation."