đ Share this article European Union Anti-Deforestation Regulation Largely 'Watered Down' After High Hopes Widely celebrated as a groundbreaking piece of legislation that would combat the global crisis of forest loss. However, the revised version of the European Union's anti-deforestation law, once touted as the crown jewel of the Green Deal, has emerged in a severely weakened state, prompting alarm from its initial author and environmental politicians. "It has been gutted," stated the law's original author, citing the removal of key obligations for downstream traders to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber. Schally cautioned that a reduced number of responsible companies, fewer data points, and imprecise sourcing details would hinder monitoring and legal action. Political Dismantling Green party MEP Marie Toussaint went further, describing the postponements, exceptions and new loopholes â including one for printed products â as the "political dismantling" of the law. This outcome stands in stark contrast to the demands of more than a million European citizens who signed a petition in 2020 demanding a prohibition of deforestation-linked products. At its launch in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the most ambitious law ever put forward to fight forest loss." A Story of Dilution The regulation's dilution has been interpreted as the European Union retreating from its environmental promises. The proposal encountered significant delays, reportedly over technical problems, which drew condemnation. "By revisiting the legislation rather than fixing a technical issue, authorities invited political interference," commented the Green MEP. In its first draft, the law mandated that firms to trace commodities to their specific geographic origin using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and large financial penalties. "This was not red tape for its own sake," Schally said. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains." 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. Analysts point to last year's European Parliament elections as a turning point, shifting the balance of power more skeptical of green regulations. "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 In the final legislation features several critical weakenings: Downstream operators were mostly exempted from submitting due diligence statements. A new âlow riskâ category was introduced. A option for more reductions was opened for next spring. Only a handful of nations â Russia, Belarus, North Korea and Myanmar â will face âhigh riskâ scrutiny. "Instead of tightening downstream obligations, it rolled them back," lamented Schally. "By shifting responsibilities upstream, it lessened the number of responsible firms." Uncertainty for Companies The delays and changes have also caused frustration for companies that prepared in advance. "We feel very annoyed because we put a lot of effort into complying," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now theyâre saying it could be altered again. Itâs a major letdown." The Commission's Stance A commission spokesperson supported the final law, saying: "The commission has responded to feedback and acted to ensure a pragmatic and balanced application." "The new text provides for predictability, which is crucial for companies and competent authorities to effectively enforce this very important law."