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It was a landmark regulation that would curb the worldwide scourge of forest loss.

But, the revised 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, leading to alarm from its initial author and green lawmakers.

"It has been stripped," stated Hugo Schally, citing the exclusion of crucial requirements for later-stage companies to check the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, less information collected, and less precise origin data would make enforcement and prosecution more difficult.

A Watered-Down Law

Green party vice-president a leading green politician was more blunt, describing the delays, loopholes and exemptions – including one for paper goods – as the "political dismantling" of the law.

This final text is a far cry from the demands of more than a million European citizens who supported an initiative in 2020 calling for a prohibition of goods linked to forest destruction.

When launched in 2021, then-Green Deal commissioner the European commissioner called it "the toughest legislation proposed to combat forest loss."

A Story of Dilution

The regulation's dilution is seen by critics as the EU walking back its environmental promises. It faced significant delays, reportedly over IT issues, which drew condemnation.

"By reopening this file instead of solving a simple IT problem, the commission opened Pandora’s box," commented the Green MEP.

Originally, the law mandated that firms to trace goods back to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with penalties and hefty fines.

"It wasn't bureaucracy for its own sake," the former official explained. "It was the mechanism that ensured enforcement, established traceability, and prevented firms from obscuring their activities behind complex supply chains."

Mounting Pressure

Yet, the strict due diligence provoked opposition in the EU capital from multinational corporations, exporting nations, conservative political groups and member states with forestry industries.

Experts cite last year's EU elections as a turning point, shifting the balance of power more skeptical of green regulations.

"Additional intense pressure came from major export markets like the United States," said expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

The Weakened Final Text

The passed law features several critical weakenings:

• Downstream operators were largely freed from conducting rigorous checks.
• A new “low risk” category was created.
• A option for more reductions was established for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Instead of tightening downstream obligations, it stripped them back," lamented the law's author. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The protracted process and revisions have also created annoyance for businesses that complied early.

"We feel very annoyed because we put a lot of effort into preparing," said a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it may be changed. It’s a big frustration."

Official Defense

A commission spokesperson defended the outcome, saying: "We have listened to concerns and taken action to ensure a pragmatic and balanced application."

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