Originally hailed as a pioneering piece of legislation that would help stop the worldwide crisis of deforestation.
But, the revised version of the EU's anti-deforestation law, once touted as the flagship policy of the European Green Deal, has emerged in a severely weakened state, prompting criticism from its initial author and environmental politicians.
"The regulation was stripped," said Hugo Schally, citing the removal of key obligations for later-stage companies to verify the provenance of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.
He warned that a reduced number of responsible companies, fewer data points, and imprecise sourcing details would complicate the task of authorities.
Environmental vice-president Marie Toussaint went further, labeling the postponements, exceptions and new loopholes – such as one for printed products – as the "systematic weakening" of the law.
This final text is a far cry from the hopes of more than a million EU citizens who signed a petition in 2020 demanding a prohibition of deforestation-linked products.
At its launch in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the toughest law proposed to combat deforestation."
The regulation's dilution is seen by critics as the European Union retreating from its environmental promises. It faced significant delays, ostensibly over technical problems, which sparked criticism.
"By reopening this file instead of solving a technical issue, authorities invited political interference," remarked the Green MEP.
In its first draft, the law mandated that firms to trace commodities to their specific geographic origin using geolocation data, making them liable for forest loss along their supply lines with criminal charges 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."
Yet, the strict due diligence provoked opposition in the EU capital from multinational corporations, exporting nations, rightwing parties and member states with forestry industries.
Analysts point to last year's EU elections as a turning point, creating a new political majority more skeptical of green regulations.
"Additional intense pressure came from major export markets outside the EU," said expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks.
The passed law includes key dilutions:
"Rather than strengthening downstream obligations, it stripped them back," lamented Schally. "By shifting responsibilities upstream, it lessened the number of responsible firms."
The delays and changes have also caused frustration for businesses that complied early.
"We feel very annoyed 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 may be changed. It’s a major letdown."
A commission spokesperson defended the outcome, saying: "The commission has responded to concerns and taken action to ensure a simple, fair and cost-efficient implementation."
"The new text provides for predictability, which is crucial for companies and national regulators to successfully implement this very important law."
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