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Widely celebrated as a landmark regulation that would help stop the global scourge of deforestation.

However, the revised version of the European Union's anti-deforestation law, once touted as the flagship policy of the Green Deal, has been passed in a significantly diluted state, leading to criticism from its initial author and green lawmakers.

"The regulation was stripped," stated Hugo Schally, citing the removal of crucial requirements for downstream traders to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, fewer data points, and imprecise sourcing details would make enforcement and prosecution more difficult.

Political Dismantling

Green party vice-president Marie Toussaint went further, labeling the postponements, exceptions and new loopholes – including one for printed products – as the "systematic weakening" of the law.

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

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

From Ambition to Compromise

The law's unravelling has been interpreted as the EU walking back its green talk. It faced significant delays, reportedly over technical problems, which sparked criticism.

"By reopening this file instead of solving a simple IT problem, authorities invited political interference," commented the Green MEP.

Originally, the law mandated that firms to track goods back to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with criminal charges and hefty fines.

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

Intense Lobbying

Yet, the rigorous checks provoked opposition in Brussels from multinational corporations, exporting nations, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a decisive moment, creating a new political majority less favorable toward green regulations.

"Additional intense pressure has come from big trading partners like the United States," said expert Andreas Rasche, implying the EU yielded to some demands in trade talks.

The Weakened Final Text

In the final legislation includes key dilutions:

• Retailers and traders were largely freed from submitting due diligence statements.
• A new “low risk” category was introduced.
• A option for more reductions was opened for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Rather than strengthening downstream obligations, it stripped them back," said Schally. "Moving obligations upstream, it lessened the number of responsible firms."

Business Frustration

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

"We feel very annoyed because we put a lot of effort into preparing," said Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."

Official Defense

A commission spokesperson defended the outcome, stating: "We have listened to feedback and taken action to ensure a simple, fair and cost-efficient implementation."

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