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It was a groundbreaking law that would combat the worldwide crisis of forest loss.

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

"The regulation was hollowed out," stated Hugo Schally, citing the exclusion of key obligations for downstream traders to check the origin of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that fewer obligated actors, less information collected, and less precise origin data would complicate the task of authorities.

A Watered-Down Law

Green party MEP a leading green politician went further, labeling the postponements, exceptions and new loopholes – including 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 European citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

At its launch in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the toughest legislation proposed to fight deforestation."

A Story of Dilution

The regulation's dilution is seen by critics as the European Union retreating from its green talk. The proposal encountered significant delays, ostensibly over IT issues, which drew condemnation.

"By reopening this file instead of solving a technical issue, the commission opened Pandora’s box," remarked Toussaint.

Originally, the regulation mandated that firms to track goods back to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with criminal charges and hefty fines.

"This was not red tape for its own sake," the former official explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and stopped companies from hiding behind complex supply chains."

Intense Lobbying

Yet, the rigorous checks triggered a backlash 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 more skeptical of environmental rules.

"Additional intense pressure has come from major export markets like the United States," said corporate sustainability professor, implying the EU yielded to some demands in trade talks.

Key Loopholes Introduced

The passed law includes several critical weakenings:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new “low risk” category was introduced.
• A option for more reductions was established for next spring.
• Only four countries – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it rolled them back," said Schally. "By shifting responsibilities to producers, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"It is very frustrating because we put a lot of effort into preparing," said a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown."

Official Defense

A commission spokesperson supported the final law, saying: "We have listened to concerns and taken action 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 regulation."