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It was a landmark piece of legislation that would combat the global crisis of deforestation.

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

"It has been stripped," said Hugo Schally, pointing to the removal of crucial requirements for downstream traders to check the provenance of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, fewer data points, and less precise origin data would make enforcement and prosecution more difficult.

A Watered-Down Law

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

This final text is a far cry from the demands of more than a million EU citizens who signed a petition in 2020 calling for a ban on goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner Frans Timmermans called it "the most ambitious legislation ever put forward to combat deforestation."

A Story of Dilution

The law's unravelling is seen by critics as the European Union retreating from its environmental promises. It faced significant delays, reportedly over technical problems, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, 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 criminal charges and hefty fines.

"This was not red tape for its own sake," the former official explained. "It was the mechanism that ensured enforcement, established traceability, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the rigorous checks triggered a backlash in Brussels from multinational corporations, producer countries, conservative political groups and member states with forestry industries.

Experts cite 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 major export markets outside the EU," said 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 largely freed from conducting rigorous checks.
• A new “low risk” category was introduced.
• A window for further "simplifications" was established for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face “high risk” scrutiny.

"Rather than strengthening downstream obligations, it rolled them back," said the law's author. "By shifting responsibilities upstream, it reduced accountability."

Uncertainty for Companies

The protracted process and revisions have also caused frustration for businesses that complied early.

"It is very frustrating 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 major letdown."

The Commission's Stance

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

"The revised regulation provides for predictability, which is crucial for companies and national regulators to successfully implement this vitally important regulation."