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Originally hailed as a groundbreaking law that would combat the global crisis of deforestation.

But, the revised version of the European Union's anti-deforestation law, previously touted as the flagship policy of the European Green Deal, has been passed in a severely weakened state, leading to alarm from its initial author and green lawmakers.

"The regulation was hollowed out," said the law's original author, citing the removal of crucial requirements for downstream traders to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

Schally cautioned that fewer obligated actors, fewer data points, and less precise origin data would hinder monitoring and legal action.

A Watered-Down Law

Environmental vice-president Marie Toussaint was more blunt, labeling the delays, loopholes and exemptions – such as one for printed products – as the "systematic weakening" of the law.

This final text is a far cry from the demands of more than a million European citizens who signed a petition in 2020 demanding a ban on deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the toughest law proposed to combat deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its environmental promises. It faced two major postponements, ostensibly over technical problems, which drew condemnation.

"By reopening this file rather than fixing a technical issue, authorities invited political interference," remarked the Green MEP.

Originally, the law required companies to track commodities to their specific geographic origin using geolocation data, 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 explained. "These rules were the tool that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains."

Intense Lobbying

However, the strict due diligence provoked opposition in Brussels from large companies, 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 green regulations.

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

The Weakened Final Text

In the final legislation includes several critical weakenings:

• Downstream operators were mostly exempted from submitting due diligence statements.
• A new “low risk” category was introduced.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," lamented Schally. "By shifting responsibilities to producers, it reduced accountability."

Uncertainty for Companies

The delays and changes have also created annoyance for companies that prepared in advance.

"We feel very annoyed 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 could be altered again. It’s a big frustration."

Official Defense

An EU representative supported the final law, stating: "The commission has responded to concerns and acted to ensure a simple, fair and cost-efficient implementation."

"The new text provides for predictability, which is key for business and competent authorities to effectively enforce this very important law."