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It was a groundbreaking piece of legislation that would help stop the worldwide 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 significantly diluted state, prompting criticism from its original architect and green lawmakers.

"The regulation was hollowed out," said Hugo Schally, citing the exclusion of crucial requirements for later-stage companies to verify the origin of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would complicate the task of authorities.

A Watered-Down Law

Environmental MEP a leading green politician was more blunt, describing the delays, loopholes and exemptions – including one for paper goods – as the "systematic weakening" of the law.

This final text stands in stark contrast to the hopes of over 1.2 million European citizens who signed a petition in 2020 demanding a prohibition of goods linked to forest destruction.

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

From Ambition to Compromise

The regulation's dilution is seen by critics as the European Union retreating from its green talk. The proposal encountered two major postponements, reportedly over technical problems, which sparked criticism.

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

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

"This was not red tape for its own sake," the former official said. "These rules were the tool that made the rules enforceable, established traceability, and stopped companies from hiding behind opaque production networks."

Intense Lobbying

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

Experts cite last year's EU elections as a decisive moment, creating a new political majority more skeptical of green regulations.

"The other pressure came from major export markets like the United States," said expert Andreas Rasche, implying the EU yielded to some demands in trade talks.

The Weakened Final Text

In the final legislation features several critical weakenings:

• Retailers and traders were largely freed from submitting due diligence statements.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Instead of tightening rules for companies, it rolled them back," lamented the law's author. "By shifting responsibilities upstream, it reduced accountability."

Business Frustration

The delays and changes have also created annoyance 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 may be changed. It’s a major letdown."

Official Defense

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

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