Originally hailed as a groundbreaking piece of legislation that would help stop the global scourge of forest loss.
But, the revised version of the European Union's anti-deforestation law, previously heralded as the flagship policy of the European Green Deal, has emerged in a severely weakened state, prompting criticism from its initial author and green lawmakers.
"It has been hollowed out," said the law's original author, citing the removal of crucial requirements for later-stage companies to check the origin of commodities like coffee, cocoa, beef, soy, palm oil, rubber and timber.
Schally cautioned that a reduced number of responsible companies, fewer data points, and imprecise sourcing details would hinder monitoring and legal action.
Green party vice-president a leading green politician was more blunt, labeling the postponements, exceptions and new loopholes – such as one for paper goods – as the "systematic weakening" of the law.
This outcome stands in stark contrast to the demands of over 1.2 million EU citizens who signed a petition in 2020 demanding a ban on goods linked to forest destruction.
When launched in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the toughest law proposed to combat forest loss."
The law's unravelling has been interpreted as the European Union retreating from its environmental promises. It faced significant delays, ostensibly over IT issues, which sparked criticism.
"By reopening this file rather than fixing a simple IT problem, the commission opened Pandora’s box," remarked the Green MEP.
In its first draft, the regulation mandated that firms to track commodities back to their specific geographic origin using geolocation data, holding them accountable for forest loss along their supply lines with penalties and hefty fines.
"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 prevented firms from obscuring their activities behind opaque production networks."
Yet, the rigorous checks provoked opposition in Brussels from multinational corporations, exporting nations, rightwing parties and EU logging states.
Analysts point to last year's EU elections as a turning point, shifting the balance of power more skeptical of green regulations.
"Additional intense pressure has come from major export markets like the United States," noted expert Andreas Rasche, implying the commission gave in to some requests during negotiations.
The passed law features several critical weakenings:
"Instead of tightening rules for companies, it rolled them back," said Schally. "By shifting responsibilities to producers, it reduced accountability."
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 preparing," stated a coffee company executive. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown."
A commission spokesperson defended the outcome, saying: "We have listened to feedback and acted to ensure a simple, fair and cost-efficient application."
"The revised regulation provides for predictability, which is key for business and national regulators to effectively enforce this vitally important regulation."
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