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Widely celebrated as a groundbreaking regulation that would combat the worldwide scourge of forest loss.

But, the revised version of the EU's anti-deforestation law, once touted as the flagship policy of the European Green Deal, has emerged in a severely weakened state, leading to alarm from its initial author and environmental politicians.

"The regulation was gutted," stated the law's original author, citing the exclusion of key obligations 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, fewer data points, and imprecise sourcing details would hinder monitoring and legal action.

Political Dismantling

Environmental vice-president a leading green politician was more blunt, describing the postponements, exceptions and new loopholes – such as one for printed products – as the "political dismantling" of the law.

This outcome is a far cry from the hopes of over 1.2 million EU citizens who supported an initiative in 2020 calling for a prohibition of goods linked to forest destruction.

When launched in 2021, the EU's climate chief the European commissioner trumpeted it as "the toughest law proposed to combat deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the EU walking back its environmental promises. It faced two major postponements, ostensibly over IT issues, which drew condemnation.

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

In its first draft, the law required companies to track commodities to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," Schally explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the rigorous checks provoked opposition in Brussels from multinational corporations, producer countries, conservative political groups and EU logging states.

Experts cite last year's EU elections as a turning point, creating a new political majority more skeptical of environmental rules.

"The other pressure came from big trading partners like the United States," noted expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

The passed law features key dilutions:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening rules for companies, it rolled them back," lamented the law's author. "Moving obligations upstream, it reduced accountability."

Uncertainty for Companies

The delays and changes have also caused frustration 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."

The Commission's Stance

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

"The revised regulation ensures stability, which is key for business and competent authorities to successfully implement this very important law."