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Widely celebrated as a landmark law that would combat the global scourge of deforestation.

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

"The regulation was stripped," said Hugo Schally, pointing to the removal of crucial requirements for downstream traders to check the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would make enforcement and prosecution more difficult.

Political Dismantling

Environmental MEP a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – such as one for paper goods – as the "political dismantling" of the law.

This final text stands in stark contrast to the demands of over 1.2 million EU citizens who signed a petition in 2020 calling for a ban on deforestation-linked products.

When launched in 2021, the EU's climate chief the European commissioner called it "the most ambitious legislation proposed to combat deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the EU walking back its green talk. The proposal encountered significant delays, ostensibly over IT issues, which sparked criticism.

"By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," commented the Green MEP.

Originally, the law required companies to track goods to their specific geographic origin 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 explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

However, the rigorous checks triggered a backlash in the EU capital from multinational corporations, producer countries, rightwing parties and member states with forestry industries.

Analysts point to last year's EU elections as a turning point, creating a new political majority less favorable toward environmental rules.

"The other pressure has come from big trading partners outside the EU," said expert Andreas Rasche, implying the EU yielded to some demands in trade talks.

Key Loopholes Introduced

In the final legislation features key dilutions:

• Downstream operators were mostly exempted from conducting rigorous checks.
• 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 “high risk” scrutiny.

"Instead of tightening downstream obligations, it rolled them back," said Schally. "By shifting responsibilities upstream, it lessened the number of responsible firms."

Business Frustration

The protracted process and revisions have also created annoyance for businesses that complied early.

"It is very frustrating because we invested significant resources into preparing," 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 major letdown."

The Commission's Stance

A commission spokesperson supported the final law, saying: "We have listened to feedback and taken action to ensure a pragmatic and balanced application."

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