🔗 Share this article EU Deforestation Law Largely 'Gutted' Despite High Hopes Originally hailed as a landmark law that would help stop the global crisis of forest loss. But, the final version of the EU's deforestation regulation, once touted 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 gutted," stated Hugo Schally, pointing to the exclusion of crucial requirements for downstream traders to check the provenance 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 less precise origin data would make enforcement and prosecution more difficult. A Watered-Down Law Environmental vice-president Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – including one for printed products – as the "systematic weakening" of the law. This outcome is a far cry from the hopes of more than a million European 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 combat deforestation." From Ambition to Compromise The regulation's dilution is seen by critics as the European Union retreating from its green talk. It faced significant delays, ostensibly over technical problems, which drew condemnation. "By revisiting the legislation instead of solving a simple IT problem, the commission opened Pandora’s box," commented the Green MEP. Originally, the regulation mandated that firms to trace commodities back to their specific geographic origin 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 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 Yet, the rigorous checks triggered a backlash in the EU capital from large companies, producer countries, rightwing parties and EU logging states. Experts cite last year's EU elections as a decisive moment, shifting the balance of power less favorable toward environmental rules. "Additional intense 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 The passed law includes key dilutions: Downstream operators were largely freed from conducting rigorous checks. A new “low risk” category was introduced. A option for more reductions was established for next spring. Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny. "Instead of tightening downstream obligations, it stripped them back," said Schally. "By shifting responsibilities to producers, it lessened the number of responsible firms." Uncertainty for Companies The protracted process and revisions have also caused frustration for companies that prepared in advance. "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 may be changed. It’s a big frustration." The Commission's Stance An EU representative supported the final law, saying: "We have listened to concerns and acted to ensure a pragmatic and balanced application." "The new text ensures stability, which is key for business and national regulators to successfully implement this vitally important regulation."