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It was a groundbreaking piece of legislation that would help stop the worldwide crisis of deforestation.

However, the final version of the EU's anti-deforestation law, once touted as the crown jewel of the European Green Deal, has been passed in a severely weakened state, leading to criticism from its original architect and environmental politicians.

"It has been gutted," stated Hugo Schally, pointing to the exclusion of key obligations for downstream traders to verify the provenance of products like coffee, cocoa, beef, soy, palm oil, rubber and timber.

He warned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would complicate the task of authorities.

Political Dismantling

Green party MEP a leading green politician was more blunt, labeling the delays, loopholes and exemptions – such as one for paper goods – as the "systematic weakening" of the law.

This final text stands in stark contrast to 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.

When launched in 2021, the EU's climate chief the European commissioner trumpeted it as "the toughest law proposed to fight deforestation."

From Ambition to Compromise

The regulation's dilution is seen by critics as the European Union retreating from its green talk. It faced two major postponements, reportedly over technical problems, which drew condemnation.

"By reopening this file instead of solving a simple IT problem, the commission opened Pandora’s box," remarked Toussaint.

Originally, the law mandated that firms to trace commodities back to their exact plot of land using geolocation data, holding them accountable for forest loss along their supply lines with penalties and hefty fines.

"This was not red tape for its own sake," Schally explained. "It was the mechanism that made the rules enforceable, created a verifiable paper trail, and stopped companies from hiding behind opaque production networks."

Mounting Pressure

Yet, the rigorous checks triggered a backlash in Brussels from multinational corporations, exporting nations, conservative political groups 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.

"The other pressure has come from major export markets outside the EU," said expert Andreas Rasche, suggesting the commission gave in to some demands in trade talks.

Key Loopholes Introduced

In the final legislation features several critical weakenings:

• Downstream operators were mostly exempted 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 – geopolitical adversaries of the EU – will face “high risk” scrutiny.

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

Business Frustration

The protracted process and revisions have also created annoyance for companies that prepared in advance.

"We feel very annoyed because we put a lot of effort into preparing," stated a coffee company executive. "We purchased systems, trained staff and established procedures... now they’re saying it could be altered again. It’s a big frustration."

Official Defense

A commission spokesperson supported the final law, stating: "The commission has responded to concerns and taken action to ensure a pragmatic and balanced implementation."

"The revised regulation provides for predictability, which is key for business and national regulators to effectively enforce this vitally important regulation."