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Originally hailed as a landmark piece of legislation that would combat the worldwide crisis of forest loss.

But, the revised version of the European Union's anti-deforestation law, once 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 Hugo Schally, citing the removal of crucial requirements for downstream traders to check the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, fewer data points, and less precise origin data would make enforcement and prosecution more difficult.

A Watered-Down Law

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

This final text stands in stark contrast to the hopes of over 1.2 million European citizens who signed a petition in 2020 demanding a ban on goods linked to forest destruction.

At its launch in 2021, the EU's climate chief the European commissioner called it "the most ambitious legislation proposed to combat deforestation."

A Story of Dilution

The law's unravelling is seen by critics as the EU walking back its green talk. It faced two major postponements, reportedly over IT issues, which drew condemnation.

"By revisiting the legislation instead of solving a simple IT problem, authorities invited political interference," remarked the Green MEP.

Originally, the regulation required companies to trace commodities back to their specific geographic origin using GPS coordinates, holding them accountable for forest loss along their supply lines with penalties and large financial penalties.

"This was not red tape for its own sake," the former official explained. "It was the mechanism that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the strict due diligence provoked opposition in Brussels from multinational corporations, 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 less favorable toward green regulations.

"The other pressure came from major export markets outside the EU," said expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks.

Key Loopholes Introduced

In the final legislation features key dilutions:

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

"Instead of tightening rules for companies, it rolled them back," said Schally. "By shifting responsibilities upstream, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also caused frustration for companies that prepared in advance.

"We feel very annoyed because we invested significant resources into complying," stated Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a big frustration."

The Commission's Stance

A commission spokesperson defended the outcome, saying: "We have listened to concerns and acted to ensure a pragmatic and balanced application."

"The revised regulation provides for predictability, which is key for business and national regulators to effectively enforce this vitally important regulation."