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It was a groundbreaking regulation that would help stop the worldwide scourge of deforestation.

But, the final version of the European Union's anti-deforestation law, once heralded as the flagship policy of the Green Deal, has emerged in a severely weakened state, prompting alarm from its initial author and environmental politicians.

"It has been stripped," said the law's original author, pointing to the exclusion of crucial requirements for later-stage companies to check the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that fewer obligated actors, fewer data points, and imprecise sourcing details would complicate the task of authorities.

A Watered-Down Law

Environmental vice-president a leading green politician was more blunt, describing the delays, loopholes and exemptions – such as one for paper goods – as the "systematic weakening" of the law.

This outcome is a far cry from the hopes of over 1.2 million European citizens who supported an initiative in 2020 calling for a prohibition of deforestation-linked products.

When launched in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the most ambitious legislation proposed to fight forest loss."

From Ambition to Compromise

The law's unravelling has been interpreted as the European Union retreating from its green talk. The proposal encountered significant delays, ostensibly over technical problems, which sparked criticism.

"By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," commented the Green MEP.

Originally, the law required companies to track goods back to their exact plot of land using GPS coordinates, making them liable for forest loss along their supply lines with criminal charges and hefty fines.

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

Mounting Pressure

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

Analysts point to last year's European Parliament elections as a turning point, creating a new political majority less favorable toward green regulations.

"The other pressure has come from big trading partners outside the EU," said expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

The passed law features several critical weakenings:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new “low risk” category was introduced.
• A window for further "simplifications" was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening downstream obligations, it rolled them back," said Schally. "Moving obligations to producers, it reduced accountability."

Uncertainty for Companies

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

"It is very frustrating because we put a lot of effort into preparing," stated a coffee company executive. "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

A commission spokesperson supported the final law, stating: "The commission has responded to feedback and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation provides for predictability, which is crucial for companies and competent authorities to successfully implement this vitally important law."