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It was a pioneering regulation that would combat the global scourge of deforestation.

However, the revised version of the European Union's anti-deforestation law, once touted as the flagship policy of the Green Deal, has been passed in a significantly diluted state, prompting alarm from its original architect and green lawmakers.

"The regulation was gutted," said the law's original author, citing the exclusion of crucial requirements for downstream traders to verify the provenance of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would complicate the task of authorities.

Political Dismantling

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

This outcome is a far cry from the demands of more than a million EU citizens who signed a petition in 2020 calling for a prohibition of deforestation-linked products.

At its launch in 2021, the EU's climate chief Frans Timmermans called it "the most ambitious law ever put forward to combat deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the European Union retreating from its environmental promises. The proposal encountered two major postponements, ostensibly over IT issues, which drew condemnation.

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

Originally, the regulation mandated that firms to track goods back to their exact plot of land using geolocation data, holding them accountable for deforestation in their supply chains with criminal charges and large financial penalties.

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

Intense Lobbying

Yet, the rigorous checks provoked opposition in the EU capital from multinational corporations, producer countries, rightwing parties and member states with forestry industries.

Analysts point to last year's European Parliament elections as a decisive moment, 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 demands in trade talks.

Key Loopholes Introduced

In the final legislation features key dilutions:

• Downstream operators were mostly exempted from submitting due diligence statements.
• A new “low risk” category was introduced.
• 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 rules for companies, it rolled them back," lamented the law's author. "By shifting responsibilities to producers, it reduced accountability."

Business Frustration

The delays and changes have also caused frustration for businesses that complied early.

"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 defended the outcome, saying: "We have listened to concerns and acted to ensure a simple, fair and cost-efficient implementation."

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