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Originally hailed as a landmark law that would combat the global crisis of forest loss.

However, the final version of the EU's anti-deforestation law, once heralded as the crown jewel of the Green Deal, has been passed in a significantly diluted state, leading to alarm from its initial author and green lawmakers.

"The regulation was gutted," said Hugo Schally, pointing to the removal of crucial requirements for downstream traders to verify the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, less information collected, and imprecise sourcing details would complicate the task of authorities.

Political Dismantling

Environmental MEP a leading green politician went further, describing the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from the demands of more than a million EU citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

At its launch in 2021, the EU's climate chief the European commissioner called it "the most ambitious law ever put forward to combat forest loss."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its green talk. The proposal encountered significant delays, reportedly over IT issues, which drew condemnation.

"By revisiting the legislation rather than fixing a technical issue, authorities invited political interference," commented the Green MEP.

In its first draft, the regulation required companies to track goods back to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and hefty fines.

"This was not red tape for its own sake," Schally said. "These rules were the tool that made the rules enforceable, established traceability, and prevented firms from obscuring their activities behind opaque production networks."

Intense Lobbying

However, the strict due diligence provoked opposition in Brussels from multinational corporations, exporting nations, rightwing parties and EU logging states.

Experts cite last year's EU elections as a turning point, creating a new political majority more skeptical of environmental rules.

"The other pressure came from major export markets outside the EU," said expert Andreas Rasche, suggesting the EU yielded to some requests during negotiations.

The Weakened Final Text

The passed law includes several critical weakenings:

• Downstream operators were mostly exempted 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 – 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 to producers, it lessened the number of responsible firms."

Business Frustration

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

"It is very frustrating because we invested significant resources into complying," 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."

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 new text provides for predictability, which is key for business and competent authorities to effectively enforce this very important law."