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It was a pioneering law that would help stop the worldwide scourge of deforestation.

However, the revised version of the European Union's anti-deforestation law, once heralded as the flagship policy of the Green Deal, has emerged in a severely weakened state, prompting criticism from its initial author and green lawmakers.

"It has been gutted," stated 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.

Schally cautioned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

A Watered-Down Law

Green party vice-president Marie Toussaint was more blunt, labeling the delays, loopholes and exemptions – including one for paper goods – as the "systematic weakening" of the law.

This outcome stands in stark contrast to the demands of more than a million EU citizens who signed a petition in 2020 demanding a ban on deforestation-linked products.

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

A Story of Dilution

The law's unravelling is seen by critics as the EU walking back its green talk. It faced significant delays, reportedly over IT issues, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, authorities invited political interference," remarked the Green MEP.

Originally, the regulation required companies to track goods back to their specific geographic origin using geolocation data, making them liable for deforestation in their supply chains with penalties and hefty fines.

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

Mounting Pressure

Yet, the rigorous checks provoked opposition in Brussels from large companies, exporting nations, rightwing parties and member states with forestry industries.

Analysts point to 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 big trading partners outside the EU," noted expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

The Weakened Final Text

In the final legislation includes 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 four countries – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Instead of tightening rules for companies, it stripped them back," said Schally. "By shifting responsibilities to producers, it lessened the number of responsible firms."

Business Frustration

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

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

The Commission's Stance

A commission spokesperson supported the final law, stating: "We have listened to feedback and taken action to ensure a simple, fair and cost-efficient implementation."

"The new text provides for predictability, which is key for business and competent authorities to effectively enforce this very important regulation."