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It was a pioneering piece of legislation that would help stop the global scourge of forest loss.

But, the final version of the EU's anti-deforestation law, previously heralded as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, leading to criticism from its original architect and green lawmakers.

"It has been gutted," stated the law's original author, pointing to the exclusion of key obligations for downstream traders to verify the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that fewer obligated actors, fewer data points, and imprecise sourcing details would hinder monitoring and legal action.

Political Dismantling

Green party vice-president Marie Toussaint went further, labeling the delays, loopholes and exemptions – such as 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 signed a petition in 2020 demanding a ban on deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans trumpeted it as "the most ambitious law ever put forward to fight forest loss."

From Ambition to Compromise

The law's unravelling is seen by critics as the European Union retreating from its green talk. It faced two major postponements, ostensibly over technical problems, which sparked criticism.

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

Originally, the regulation mandated that firms to trace commodities back to their exact plot of land using GPS coordinates, holding them accountable for forest loss along their supply lines with criminal charges and hefty fines.

"It wasn't bureaucracy for its own sake," the former official said. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

However, the strict due diligence provoked opposition in the EU capital from large companies, exporting nations, conservative political groups and member states with forestry industries.

Analysts point to last year's European Parliament elections as a decisive moment, creating a new political majority more skeptical of environmental rules.

"Additional intense pressure has come from big trading partners outside the EU," said corporate sustainability professor, suggesting the EU yielded to some demands in trade talks.

The Weakened Final Text

The passed law features several critical weakenings:

• 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 a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring.

"Rather than strengthening downstream obligations, it rolled them back," said the law's author. "Moving obligations to producers, it reduced accountability."

Business Frustration

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

"We feel very annoyed because we invested significant resources into preparing," 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 big frustration."

The Commission's Stance

A commission spokesperson supported the final law, saying: "We have listened to feedback and acted to ensure a pragmatic and balanced implementation."

"The revised regulation provides for predictability, which is crucial for companies and national regulators to successfully implement this very important regulation."