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It was a pioneering law that would combat the global scourge of deforestation.

But, the final version of the European Union's anti-deforestation law, previously touted as the crown jewel of the European Green Deal, has been passed in a severely weakened state, prompting alarm from its original architect and green lawmakers.

"It has been gutted," said the law's original author, citing the removal of crucial requirements for downstream traders to check the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, fewer data points, and imprecise sourcing details would hinder monitoring and legal action.

A Watered-Down Law

Environmental MEP Marie Toussaint went further, describing the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law.

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

When launched in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the most ambitious law proposed to combat deforestation."

A Story of Dilution

The regulation's dilution has been interpreted as the EU walking back its green talk. It faced two major postponements, ostensibly over technical problems, which sparked criticism.

"By revisiting the legislation instead of solving a simple IT problem, authorities invited political interference," commented Toussaint.

Originally, the regulation mandated that firms to trace goods to their specific geographic origin using geolocation data, making them liable for deforestation in their supply chains with criminal charges and large financial penalties.

"It wasn't bureaucracy for its own sake," Schally explained. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

However, the strict due diligence triggered a backlash in the EU capital from multinational corporations, producer countries, rightwing parties 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 green regulations.

"The other pressure came from big trading partners outside the EU," noted corporate sustainability professor, implying the EU yielded to some requests during negotiations.

The Weakened Final Text

The passed law includes key dilutions:

• Retailers and traders 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 a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening rules for companies, it stripped them back," lamented the law's author. "Moving obligations upstream, it lessened the number of responsible firms."

Uncertainty for Companies

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

"It is very frustrating because we invested significant resources into preparing," stated Xavier Rombouts. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a big frustration."

The Commission's Stance

An EU representative supported the final law, stating: "The commission has responded to concerns and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation provides for predictability, which is crucial for companies and national regulators to effectively enforce this vitally important law."