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Originally hailed as a pioneering law that would combat the global scourge of deforestation.

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 severely weakened state, leading to alarm from its initial author and environmental politicians.

"It has been hollowed out," said Hugo Schally, citing the removal of key obligations for downstream traders to verify the origin 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 hinder monitoring and legal action.

Political Dismantling

Environmental MEP a leading green politician went further, describing the postponements, exceptions and new loopholes – such as one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from the hopes of over 1.2 million European citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the toughest law ever put forward to combat deforestation."

A Story of Dilution

The regulation's dilution has been interpreted as the EU walking back its green talk. It faced significant delays, ostensibly over technical problems, which drew condemnation.

"By revisiting the legislation rather than fixing a simple IT problem, authorities invited political interference," remarked the Green MEP.

In its first draft, the regulation required companies to trace commodities to their exact plot of land using geolocation data, making them liable for deforestation in their supply chains with criminal charges and hefty fines.

"This was not red tape for its own sake," the former official said. "It was the mechanism that made the rules enforceable, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

Yet, the strict due diligence triggered a backlash in the EU capital from large companies, producer countries, 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 more skeptical of green regulations.

"The other pressure has come from big trading partners like the United States," noted expert Andreas Rasche, suggesting the EU yielded to some demands in trade talks.

Key Loopholes Introduced

The passed law features several critical weakenings:

• Downstream operators 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 a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening downstream obligations, it rolled them back," lamented the law's author. "By shifting responsibilities to producers, it reduced accountability."

Uncertainty for Companies

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

"We feel very annoyed because we put a lot of effort into complying," stated Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a big frustration."

Official Defense

A commission spokesperson defended the outcome, stating: "We have listened to concerns and acted to ensure a pragmatic and balanced implementation."

"The revised regulation ensures stability, which is crucial for companies and national regulators to successfully implement this vitally important law."