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It was a landmark law that would curb the global scourge of forest loss.

But, the final version of the European Union's deforestation regulation, once heralded as the crown jewel of the European Green Deal, has been passed in a significantly diluted state, leading to criticism from its initial author and green lawmakers.

"It has been stripped," stated the law's original author, pointing to the removal of crucial requirements for downstream traders to check the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that fewer obligated actors, less information collected, and imprecise sourcing details would complicate the task of authorities.

A Watered-Down Law

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

This final text is a far cry from the demands of over 1.2 million EU citizens who signed a petition in 2020 calling for a prohibition of goods linked to forest destruction.

At its launch in 2021, then-Green Deal commissioner the European commissioner trumpeted it as "the toughest law proposed to fight deforestation."

A Story of Dilution

The law's unravelling is seen by critics as the EU walking back its environmental promises. The proposal encountered significant delays, ostensibly over technical problems, which sparked criticism.

"By reopening this file rather than fixing a technical issue, authorities invited political interference," commented the Green MEP.

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

"It wasn't bureaucracy for its own sake," the former official explained. "These rules were the tool that ensured enforcement, established traceability, and stopped companies from hiding behind complex supply chains."

Mounting Pressure

Yet, the strict due diligence triggered a backlash in the EU capital from multinational corporations, producer countries, conservative political groups and member states with forestry industries.

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

"The other pressure has come from big trading partners outside the EU," said corporate sustainability professor, suggesting the commission gave in to some requests during negotiations.

The Weakened Final Text

In the final legislation includes key dilutions:

• Retailers and traders were largely freed from submitting due diligence statements.
• A new “low risk” category was created.
• A option for more reductions was established for next spring.
• Only a handful of nations – Russia, Belarus, North Korea and Myanmar – will face the strictest monitoring.

"Rather than strengthening rules for companies, it rolled them back," lamented the law's author. "Moving obligations to producers, it reduced accountability."

Uncertainty for Companies

The protracted process and revisions have also caused frustration for companies that prepared in advance.

"It is very frustrating because we put a lot of effort into complying," said Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it may be changed. It’s a big frustration."

The Commission's Stance

An EU representative defended the outcome, stating: "We have listened to feedback and acted to ensure a simple, fair and cost-efficient implementation."

"The new text ensures stability, which is key for business and national regulators to successfully implement this very important law."