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It was a groundbreaking regulation that would help stop the worldwide crisis of deforestation.

But, the final version of the EU's anti-deforestation law, previously touted as the crown jewel of the Green Deal, has emerged in a severely weakened state, leading to alarm from its initial author and environmental politicians.

"It has been gutted," stated the law's original author, pointing to the removal of key obligations for later-stage companies to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, less information collected, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Environmental vice-president Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – such as one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from the demands of over 1.2 million European citizens who signed a petition in 2020 demanding a prohibition of deforestation-linked products.

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the most ambitious law proposed to combat deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its green talk. It faced significant delays, reportedly over IT issues, which sparked criticism.

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

Originally, the regulation mandated that firms to trace goods to their exact plot of land using GPS coordinates, making them liable for deforestation in their supply chains with criminal charges and hefty fines.

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

Intense Lobbying

Yet, the rigorous checks triggered a backlash in Brussels from large companies, producer countries, conservative political groups and member states with forestry industries.

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

"Additional intense pressure came from major export markets outside the EU," noted expert Andreas Rasche, implying the commission gave in to some demands in trade talks.

The Weakened Final Text

The passed law features key dilutions:

• Downstream operators were mostly exempted from submitting due diligence statements.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," lamented the law's author. "Moving obligations to producers, it reduced accountability."

Uncertainty for Companies

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"It is very frustrating because we put a lot of effort into preparing," said a coffee company executive. "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

A commission spokesperson defended the outcome, stating: "We have listened to feedback and acted to ensure a simple, fair and cost-efficient implementation."

"The revised regulation ensures stability, which is key for business and competent authorities to effectively enforce this vitally important law."