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Originally hailed as a landmark law that would curb the global crisis of deforestation.

But, the revised version of the EU's anti-deforestation law, previously heralded as the flagship policy of the Green Deal, has emerged in a significantly diluted state, prompting criticism from its initial author and environmental politicians.

"The regulation was hollowed out," stated Hugo Schally, pointing to the removal of key obligations for downstream traders to verify 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 complicate the task of authorities.

Political Dismantling

Environmental MEP a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – including one for printed products – as the "political dismantling" of the law.

This final text stands in stark contrast to the hopes of more than a million EU citizens who signed a petition in 2020 calling for 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 legislation proposed to fight deforestation."

From Ambition to Compromise

The law's unravelling is seen by critics as the EU walking back its environmental promises. The proposal encountered significant delays, reportedly over IT issues, which drew condemnation.

"By revisiting the legislation rather than fixing a technical issue, authorities invited political interference," remarked the Green MEP.

Originally, the law required companies to trace commodities to their exact plot of land using GPS coordinates, holding them accountable for forest loss along their supply lines with penalties and hefty fines.

"This was not red tape for its own sake," Schally said. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

However, the strict due diligence provoked opposition in Brussels from large companies, producer countries, rightwing parties and member states with forestry industries.

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

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

Key Loopholes Introduced

In the final legislation includes several critical weakenings:

• Downstream operators were mostly exempted from submitting due diligence statements.
• A new “low risk” category was created.
• A option for more reductions was opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it rolled them back," said Schally. "Moving obligations to producers, it reduced accountability."

Uncertainty for Companies

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

"We feel very annoyed 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

An EU representative defended the outcome, saying: "The commission has responded to feedback and acted to ensure a pragmatic and balanced implementation."

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