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Widely celebrated as a landmark law that would curb the worldwide scourge of forest loss.

But, the final version of the EU's anti-deforestation law, previously heralded as the flagship policy of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its initial author and environmental politicians.

"The regulation was hollowed out," stated the law's original author, 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 hinder monitoring and legal action.

A Watered-Down Law

Environmental MEP Marie Toussaint was more blunt, labeling the delays, loopholes and exemptions – such as one for printed products – as the "systematic weakening" of the law.

This final text stands in stark contrast to the demands of over 1.2 million EU citizens who supported an initiative in 2020 calling for a prohibition of deforestation-linked products.

When launched in 2021, the EU's climate chief the European commissioner trumpeted it as "the toughest legislation ever put forward 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 technical problems, which sparked criticism.

"By reopening this file instead of solving a technical issue, authorities invited political interference," commented Toussaint.

In its first draft, the regulation required companies to track commodities to their specific geographic origin using GPS coordinates, holding them accountable for forest loss along their supply lines with penalties and large financial penalties.

"It wasn't bureaucracy for its own sake," the former official 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 strict due diligence triggered a backlash in the EU capital from multinational corporations, producer countries, conservative political groups and member states with forestry industries.

Experts cite last year's EU elections as a turning point, creating a new political majority less favorable toward environmental rules.

"Additional intense pressure has come from major export markets outside the EU," noted expert Andreas Rasche, 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 opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it stripped them back," said the law's author. "Moving obligations upstream, it reduced accountability."

Uncertainty for Companies

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

"It is very frustrating because we put a lot of effort 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."

Official Defense

An EU representative supported the final law, stating: "We have listened to feedback and acted to ensure a pragmatic and balanced implementation."

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