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

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

"It has been hollowed out," stated the law's original author, pointing to the exclusion of key obligations for downstream traders to verify the origin 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.

A Watered-Down Law

Green party MEP Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

This outcome stands in stark contrast to the demands of over 1.2 million EU citizens who signed a petition in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the most ambitious legislation ever put forward to fight deforestation."

From Ambition to Compromise

The law's unravelling has been interpreted as the European Union retreating from its green talk. It faced significant delays, reportedly over technical problems, which drew condemnation.

"By revisiting the legislation rather than fixing a simple IT problem, the commission opened Pandora’s box," commented Toussaint.

Originally, the regulation mandated that firms to trace 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.

"This was not red tape for its own sake," Schally explained. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

However, the rigorous checks provoked opposition in Brussels from large companies, producer countries, rightwing parties and EU logging states.

Analysts point to last year's EU elections as a decisive moment, shifting the balance of power less favorable toward environmental rules.

"The other pressure has come from big trading partners like the United States," noted corporate sustainability professor, suggesting the EU yielded to some demands in trade talks.

The Weakened Final Text

The passed law features key dilutions:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was established for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

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

Business Frustration

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," said 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."

The Commission's Stance

A commission spokesperson supported the final law, stating: "The commission has responded to feedback and acted to ensure a simple, fair and cost-efficient implementation."

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