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It was a pioneering piece of legislation that would combat the global crisis of forest loss.

However, the final version of the European Union's anti-deforestation law, once touted as the crown jewel of the European Green Deal, has been passed in a severely weakened state, prompting criticism from its original architect and environmental politicians.

"The regulation was stripped," stated the law's original author, pointing to the removal of key obligations for later-stage companies to check the origin of products 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 complicate the task of authorities.

Political Dismantling

Green party MEP a leading green politician was more blunt, labeling the delays, loopholes and exemptions – such as one for printed products – as the "political dismantling" of the law.

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

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the toughest law proposed to fight forest loss."

From Ambition to Compromise

The law's unravelling has been interpreted as the EU walking back its green talk. The proposal encountered two major postponements, reportedly over technical problems, which drew condemnation.

"By reopening this file instead of solving a technical issue, the commission opened Pandora’s box," commented Toussaint.

Originally, the regulation mandated that firms to track goods back to their exact plot of land using GPS coordinates, making them liable for forest loss along their supply lines with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official said. "It was the mechanism that made the rules enforceable, established traceability, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

However, the strict due diligence provoked opposition 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, shifting the balance of power more skeptical of environmental rules.

"Additional intense pressure has come from major export markets like the United States," noted expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks.

The Weakened Final Text

In the final legislation features several critical weakenings:

• Retailers and traders 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 – 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. "Moving obligations upstream, it lessened the number of responsible firms."

Business Frustration

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we invested significant resources into complying," stated a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a big frustration."

The Commission's Stance

An EU representative supported the final law, saying: "The commission has responded to concerns and acted to ensure a pragmatic and balanced implementation."

"The new text ensures stability, which is crucial for companies and national regulators to effectively enforce this vitally important regulation."