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Widely celebrated as a groundbreaking piece of legislation that would help stop the global crisis of forest loss.

But, the revised version of the European Union's anti-deforestation law, once heralded as the crown jewel of the Green Deal, has been passed in a severely weakened state, prompting criticism from its initial author and environmental politicians.

"The regulation was hollowed out," stated Hugo Schally, pointing to the exclusion of key obligations for downstream traders to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, fewer data points, and imprecise sourcing details would complicate the task of authorities.

Political Dismantling

Green party MEP a leading green politician went further, describing the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

This outcome is a far cry from the hopes of over 1.2 million European citizens who supported an initiative in 2020 calling for a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the most ambitious law proposed to combat forest loss."

From Ambition to Compromise

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

"By reopening this file instead of solving a technical issue, authorities invited political interference," remarked the Green MEP.

In its first draft, the regulation mandated that firms to trace commodities back to their exact plot of land using geolocation data, making them liable for deforestation in their supply chains with criminal charges and hefty fines.

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

Mounting Pressure

Yet, the rigorous checks triggered a backlash in Brussels from large companies, producer countries, rightwing parties and EU logging states.

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

"Additional intense pressure has come from big trading partners outside the EU," said expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

The passed law includes key dilutions:

• Downstream operators were mostly exempted from submitting due diligence statements.
• A new exemption for small operators was created.
• A option for more reductions 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 stripped them back," said the law's author. "By shifting responsibilities upstream, it reduced accountability."

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 preparing," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a major letdown."

The Commission's Stance

A commission spokesperson defended the outcome, stating: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced application."

"The revised regulation ensures stability, which is key for business and competent authorities to successfully implement this very important law."