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It was a pioneering regulation that would combat the worldwide crisis of forest loss.

However, the final version of the EU's anti-deforestation law, previously touted as the crown jewel of the Green Deal, has been passed in a severely weakened state, leading to criticism from its initial author and green lawmakers.

"The regulation was hollowed out," stated Hugo Schally, pointing to the removal of crucial requirements for downstream traders to verify the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

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

A Watered-Down Law

Green party vice-president a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – such as one for paper goods – as the "systematic weakening" of the law.

This outcome is a far cry from the demands of over 1.2 million European citizens who signed a petition in 2020 calling for a prohibition of goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner Frans Timmermans called it "the most ambitious legislation proposed to fight forest loss."

From Ambition to Compromise

The law's unravelling is seen by critics as the EU walking back its green talk. The proposal encountered significant delays, reportedly over technical problems, which drew condemnation.

"By revisiting the legislation instead of solving a simple IT problem, the commission opened Pandora’s box," commented the Green MEP.

Originally, the law required companies to trace commodities 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," the former official explained. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

Yet, the strict due diligence provoked opposition 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, shifting the balance of power less favorable toward green regulations.

"Additional intense pressure has come from big trading partners like the United States," noted expert Andreas Rasche, suggesting the commission gave in to some requests during negotiations.

Key Loopholes Introduced

In the final legislation 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 opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening rules for companies, it stripped them back," said Schally. "Moving obligations to producers, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also caused frustration for companies that prepared in advance.

"We feel very annoyed 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 could be altered again. It’s a big frustration."

The Commission's Stance

An EU representative defended the outcome, saying: "The commission has responded to feedback and acted to ensure a pragmatic and balanced implementation."

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