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Originally hailed as a landmark piece of legislation that would help stop the global scourge of deforestation.

But, the final version of the EU's anti-deforestation law, once heralded as the flagship policy of the Green Deal, has been passed in a severely weakened state, prompting alarm from its original architect and green lawmakers.

"The regulation was gutted," said Hugo Schally, pointing to the exclusion of key obligations for later-stage companies to check the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that fewer obligated actors, less information collected, and imprecise sourcing details would hinder monitoring and legal action.

A Watered-Down Law

Environmental vice-president a leading green politician was more blunt, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "systematic weakening" of the law.

This final text stands in stark contrast to the hopes of more than a million European citizens who signed a petition in 2020 calling for a ban on goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious legislation ever put forward to combat deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its green talk. It faced two major postponements, ostensibly over technical problems, which drew condemnation.

"By revisiting the legislation rather than fixing a simple IT problem, authorities invited political interference," remarked Toussaint.

Originally, the regulation mandated that firms to track commodities to their specific geographic origin using GPS coordinates, making them liable for forest loss along their supply lines with criminal charges and large financial penalties.

"It wasn't bureaucracy for its own sake," the former official said. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the rigorous checks triggered a backlash in the EU capital from large companies, exporting nations, conservative political groups and member states with forestry industries.

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

"Additional intense pressure has come from major export markets like the United States," noted expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

Key Loopholes Introduced

The passed law features key dilutions:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A option for more reductions was opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening rules for companies, it rolled them back," lamented Schally. "Moving obligations 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," 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 major letdown."

The Commission's Stance

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

"The new text ensures stability, which is crucial for companies and competent authorities to effectively enforce this vitally important regulation."