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It was a landmark law that would curb the global crisis of deforestation.

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

"It has been gutted," said Hugo Schally, citing the exclusion of key obligations for downstream traders to check the provenance of commodities 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

Environmental MEP Marie Toussaint was more blunt, describing the delays, loopholes and exemptions – such as one for printed products – as the "systematic weakening" of the law.

This outcome stands in stark contrast to the demands of over 1.2 million European citizens who supported an initiative in 2020 calling for a prohibition of deforestation-linked products.

When launched in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the most ambitious law ever put forward to combat 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 technical problems, which drew condemnation.

"By reopening this file rather than fixing a technical issue, the commission opened Pandora’s box," remarked Toussaint.

In its first draft, the regulation mandated that firms to track goods back to their exact plot of land using GPS coordinates, holding them accountable for deforestation in their supply chains with criminal charges and hefty fines.

"It wasn't bureaucracy for its own sake," the former official explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks."

Intense Lobbying

Yet, the rigorous checks triggered a backlash in Brussels from multinational corporations, producer countries, conservative political groups and EU logging states.

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

"Additional intense pressure has come from big trading partners like the United States," said expert Andreas Rasche, implying the commission gave in to some requests during negotiations.

Key Loopholes Introduced

In the final legislation features several critical weakenings:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was introduced.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face “high risk” scrutiny.

"Rather than strengthening rules for companies, it stripped them back," said Schally. "By shifting responsibilities to producers, it reduced accountability."

Uncertainty for Companies

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

"It is very frustrating because we invested significant resources into preparing," stated a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown."

The Commission's Stance

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

"The new text ensures stability, which is key for business and national regulators to effectively enforce this vitally important regulation."