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Originally hailed as a landmark regulation that would combat the global crisis of forest loss.

However, the revised version of the EU's anti-deforestation law, previously heralded as the flagship policy of the Green Deal, has been passed in a severely weakened state, leading to alarm from its original architect and green lawmakers.

"The regulation was gutted," stated the law's original author, pointing to the removal of crucial requirements for later-stage companies to verify the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

A Watered-Down Law

Environmental MEP Marie Toussaint went further, describing the postponements, exceptions and new loopholes – including one for printed products – as the "political dismantling" of the law.

This outcome stands in stark contrast to the demands of more than a million EU citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, then-Green Deal commissioner the European commissioner called it "the toughest legislation proposed to combat forest loss."

A Story of Dilution

The regulation's dilution is seen by critics as the EU walking back its environmental promises. The proposal encountered significant delays, reportedly over IT issues, which drew condemnation.

"By revisiting the legislation instead of solving a simple IT problem, authorities invited political interference," commented Toussaint.

In its first draft, the law required companies to trace commodities to their specific geographic origin using geolocation data, making them liable for deforestation in their supply chains with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official said. "These rules were the tool that made the rules enforceable, established traceability, 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, exporting nations, conservative political groups and EU logging states.

Experts cite last year's European Parliament elections as a turning point, creating a new political majority less favorable toward green regulations.

"Additional intense pressure has come from big trading partners like the United States," said expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks.

Key Loopholes Introduced

In the final legislation features several critical weakenings:

• Retailers and traders were largely freed from submitting due diligence statements.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was established for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it stripped them back," lamented the law's author. "Moving obligations upstream, it lessened the number of responsible firms."

Uncertainty for Companies

The delays and changes have also created annoyance for businesses that complied early.

"It is very frustrating because we invested significant resources into complying," stated 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."

Official Defense

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

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