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It was a groundbreaking law that would curb the worldwide scourge of forest loss.

But, the revised version of the European Union's anti-deforestation law, previously heralded as the crown jewel of the Green Deal, has been passed in a significantly diluted state, leading to criticism from its original architect and green lawmakers.

"It has been gutted," said the law's original author, citing the removal of key obligations for later-stage companies to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, fewer data points, and less precise origin data would complicate the task of authorities.

Political Dismantling

Green party MEP Marie Toussaint went further, labeling the delays, loopholes and exemptions – including one for paper goods – as the "systematic weakening" of the law.

This outcome is a far cry from the demands of more than a million European 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 called it "the most ambitious legislation ever put forward to fight deforestation."

From Ambition to Compromise

The regulation's dilution has been interpreted as the EU walking back its environmental promises. It faced significant delays, reportedly over IT issues, which sparked criticism.

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

In its first draft, the regulation required companies to track commodities back to their exact plot of land 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 said. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Intense Lobbying

Yet, the strict due diligence triggered a backlash in Brussels from large companies, exporting nations, conservative political groups and EU logging states.

Experts cite last year's EU elections as a turning point, shifting the balance of power less favorable toward environmental rules.

"Additional intense pressure has come from big trading partners outside the EU," noted corporate sustainability professor, implying the EU yielded to some requests during negotiations.

Key Loopholes Introduced

The passed law includes key dilutions:

• Downstream operators were largely freed from conducting rigorous checks.
• A new exemption for small operators was created.
• 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," lamented Schally. "Moving obligations upstream, it lessened the number of responsible firms."

Uncertainty for Companies

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we invested significant resources into complying," 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

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 application."

"The new text ensures stability, which is crucial for companies and competent authorities to effectively enforce this vitally important law."