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It was a groundbreaking piece of legislation that would help stop the worldwide crisis of forest loss.

But, the revised version of the European Union's deforestation regulation, previously touted as the crown jewel of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its original architect and environmental politicians.

"It has been gutted," said the law's original author, citing the removal of key obligations for downstream traders to verify the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, fewer data points, and imprecise sourcing details would complicate the task of authorities.

A Watered-Down Law

Environmental vice-president a leading green politician went further, describing the postponements, exceptions and new loopholes – including one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from the demands of more than a million European citizens who signed a petition in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious legislation proposed to fight deforestation."

A Story of Dilution

The law's unravelling is seen by critics as the EU walking back its green talk. It faced significant delays, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation rather than fixing a technical issue, the commission opened Pandora’s box," commented the Green MEP.

Originally, the regulation mandated that firms to track goods to their exact plot of land using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and large financial penalties.

"It wasn't bureaucracy 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

However, the rigorous checks provoked opposition in Brussels from large companies, exporting nations, conservative political groups and EU logging states.

Analysts point to last year's European Parliament elections as a turning point, shifting the balance of power more skeptical of green regulations.

"The other pressure came from major export markets outside the EU," noted corporate sustainability professor, implying the EU yielded to some demands in trade talks.

Key Loopholes Introduced

In the final legislation includes several critical weakenings:

• Downstream operators were largely freed from conducting rigorous checks.
• A new exemption for small operators was introduced.
• 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.

"Instead of tightening downstream obligations, it stripped 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 invested significant resources into preparing," stated a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a major letdown."

Official Defense

An EU representative defended the outcome, stating: "We have listened to concerns and acted to ensure a pragmatic and balanced implementation."

"The new text ensures stability, which is key for business and competent authorities to successfully implement this very important regulation."