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It was a landmark regulation that would combat the global scourge of deforestation.

However, the revised version of the European Union's deforestation regulation, previously heralded as the flagship policy of the Green Deal, has emerged in a severely weakened state, leading to alarm from its original architect and environmental politicians.

"It has been hollowed out," said the law's original author, citing the removal of crucial requirements for later-stage companies to check the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would complicate the task of authorities.

Political Dismantling

Green party vice-president a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – including one for paper goods – as the "systematic weakening" of the law.

This final text is a far cry from the demands of over 1.2 million European citizens who signed a petition in 2020 calling for a prohibition of goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the toughest legislation proposed to combat deforestation."

From Ambition to Compromise

The law's unravelling has been interpreted as the European Union retreating from its environmental promises. The proposal encountered two major postponements, reportedly over technical problems, which sparked criticism.

"By reopening this file instead of solving a simple IT problem, the commission opened Pandora’s box," commented Toussaint.

In its first draft, the regulation mandated that firms to trace goods to their specific geographic origin 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 explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the rigorous checks triggered a backlash in the EU capital from multinational corporations, exporting nations, conservative political groups and member states with forestry industries.

Analysts point to last year's European Parliament elections as a turning point, creating a new political majority less favorable toward environmental rules.

"The other pressure came from big trading partners like the United States," noted expert Andreas Rasche, implying the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law includes key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

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

Uncertainty for Companies

The protracted process and revisions have also created annoyance for businesses that complied early.

"It is very frustrating because we put a lot of effort into complying," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."

Official Defense

An EU representative supported the final law, stating: "We have listened to concerns and acted to ensure a pragmatic and balanced application."

"The new text ensures stability, which is crucial for companies and competent authorities to successfully implement this very important law."