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Widely celebrated as a pioneering regulation that would combat the worldwide crisis of forest loss.

However, the final version of the EU's anti-deforestation law, previously touted as the flagship policy of the Green Deal, has been passed in a significantly diluted state, leading to alarm from its original architect and environmental politicians.

"The regulation was stripped," stated the law's original author, citing the exclusion of crucial requirements for downstream traders to verify the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned 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 MEP a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – such as one for printed products – as the "systematic weakening" of the law.

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

At its launch in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the toughest legislation proposed to combat deforestation."

A Story of Dilution

The regulation's dilution has been interpreted as the European Union retreating from its green talk. It faced two major postponements, ostensibly over IT issues, which drew condemnation.

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

In its first draft, the law mandated that firms to track goods to their exact plot of land using geolocation data, holding them accountable for deforestation in their supply chains with penalties and large financial penalties.

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

Intense Lobbying

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

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

"The other pressure has come from big trading partners outside the EU," said expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks.

The Weakened Final Text

The passed law includes several critical weakenings:

• Downstream operators were largely freed from submitting due diligence statements.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was opened 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 the law's author. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

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

"It is very frustrating because we put a lot of effort into complying," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."

The Commission's Stance

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

"The revised regulation ensures stability, which is key for business and national regulators to successfully implement this vitally important law."