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It was a landmark regulation that would combat 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, leading to criticism from its initial author and green lawmakers.

"It has been stripped," said the law's original author, citing the exclusion of key obligations for later-stage companies to verify the origin of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that a reduced number of responsible companies, less information collected, and less precise origin data would complicate the task of authorities.

Political Dismantling

Environmental vice-president Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – including one for paper goods – as the "systematic weakening" 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 calling for a prohibition of deforestation-linked products.

When launched in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the toughest law ever put forward to combat deforestation."

A Story of Dilution

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

"By reopening this file rather than fixing a technical issue, the commission opened Pandora’s box," remarked the Green MEP.

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

"This was not red tape for its own sake," the former official explained. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, 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, rightwing parties and EU logging states.

Analysts point to last year's EU elections as a decisive moment, shifting the balance of power more skeptical of green regulations.

"Additional intense pressure came from major export markets outside the EU," noted corporate sustainability professor, implying the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law features key dilutions:

• Retailers and traders were largely freed from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was established for next spring.
• Only a handful of nations – 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. "Moving obligations to producers, it reduced accountability."

Business Frustration

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

"It is very frustrating because we put a lot of effort into complying," stated 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 supported the final law, stating: "We have listened to concerns and acted to ensure a pragmatic and balanced application."

"The revised regulation ensures stability, which is crucial for companies and national regulators to effectively enforce this very important law."