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Originally hailed as a groundbreaking law that would curb the global scourge of forest loss.

But, the revised version of the European Union's deforestation regulation, once heralded as the crown jewel of the Green Deal, has emerged in a significantly diluted state, prompting alarm from its original architect and green lawmakers.

"The regulation was gutted," stated Hugo Schally, pointing to the exclusion of crucial requirements for downstream traders to check the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that fewer obligated actors, fewer data points, and less precise origin data would complicate the task of authorities.

Political Dismantling

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

This final text is a far cry from the hopes of over 1.2 million European citizens who signed a petition in 2020 calling for a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief the European commissioner called it "the most ambitious law ever put forward to combat forest loss."

From Ambition to Compromise

The law's unravelling has been interpreted as the EU walking back its environmental promises. The proposal encountered significant delays, reportedly over technical problems, which sparked criticism.

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

Originally, the regulation required companies to trace goods to their specific geographic origin using geolocation data, holding them accountable for deforestation in their supply chains with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," Schally explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

However, the rigorous checks provoked opposition in the EU capital from multinational corporations, exporting nations, conservative political groups and member states with forestry industries.

Analysts point to last year's EU elections as a decisive moment, creating a new political majority more skeptical of green regulations.

"The other pressure came from major export markets outside the EU," noted corporate sustainability professor, implying the commission gave in 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 exemption for small operators was created.
• A option for more reductions was established for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," said the law's author. "By shifting responsibilities upstream, it reduced accountability."

Uncertainty for Companies

The delays and changes have also caused frustration for companies that prepared in advance.

"It is very frustrating because we invested significant resources into preparing," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a big frustration."

Official Defense

An EU representative supported the final law, saying: "We have listened to concerns and acted to ensure a simple, fair and cost-efficient implementation."

"The new text ensures stability, which is key for business and national regulators to effectively enforce this very important regulation."