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It was a landmark piece of legislation that would combat the worldwide scourge of deforestation.

However, the final version of the European Union's anti-deforestation law, previously touted as the crown jewel of the Green Deal, has emerged in a significantly diluted state, leading to criticism from its original architect and environmental politicians.

"The regulation was hollowed out," stated the law's original author, citing the removal of crucial requirements for later-stage companies to verify the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that fewer obligated actors, fewer data points, and less precise origin data would make enforcement and prosecution more difficult.

A Watered-Down Law

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

This outcome stands in stark contrast to the hopes of more than a million European citizens who supported an initiative in 2020 demanding a prohibition of deforestation-linked products.

At its launch in 2021, then-Green Deal commissioner the European commissioner called it "the toughest legislation 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. It faced significant delays, reportedly over IT issues, which drew condemnation.

"By reopening this file rather than fixing a technical issue, authorities invited political interference," commented Toussaint.

In its first draft, the regulation required companies to track commodities back to their specific geographic origin using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and large financial penalties.

"This was not red tape for its own sake," Schally explained. "These rules were the tool that made the rules enforceable, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the rigorous checks provoked opposition in Brussels from large companies, exporting nations, conservative political groups and member states with forestry industries.

Experts cite last year's European Parliament elections as a decisive moment, 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 commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law features several critical weakenings:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was established 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," said the law's author. "By shifting responsibilities to producers, it reduced accountability."

Uncertainty for Companies

The protracted process and revisions have also caused frustration for businesses that complied early.

"It is very frustrating because we put a lot of effort into complying," said a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a big frustration."

Official Defense

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

"The new text ensures stability, which is crucial for companies and competent authorities to successfully implement this very important regulation."