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Originally hailed as a groundbreaking law that would help stop the worldwide scourge of forest loss.

But, the final version of the European Union's anti-deforestation law, previously heralded as the flagship policy of the Green Deal, has been passed in a significantly diluted state, leading to alarm from its original architect and environmental politicians.

"The regulation was stripped," stated Hugo Schally, citing the exclusion of key obligations for downstream traders to check the origin of commodities like palm oil, soy, wood, beef, rubber, cocoa and coffee.

He warned that a reduced number of responsible companies, less information collected, and less precise origin data would hinder monitoring and legal action.

Political Dismantling

Environmental vice-president Marie Toussaint went further, describing the delays, loopholes and exemptions – including one for printed products – as the "systematic weakening" of the law.

This outcome stands in stark contrast to the hopes of over 1.2 million European citizens who supported an initiative in 2020 demanding a ban on deforestation-linked products.

When launched in 2021, then-Green Deal commissioner Frans Timmermans trumpeted it as "the most ambitious legislation ever put forward to combat forest loss."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its environmental promises. The proposal encountered significant delays, reportedly over IT issues, which sparked criticism.

"By revisiting the legislation instead of solving a technical issue, the commission opened Pandora’s box," remarked Toussaint.

Originally, the law required companies to trace commodities to their specific geographic origin using GPS coordinates, making them liable for deforestation in their supply chains with criminal charges and hefty fines.

"This was not red tape for its own sake," Schally explained. "It was the mechanism that ensured enforcement, created a verifiable paper trail, and prevented firms from obscuring their activities behind opaque production networks."

Mounting Pressure

However, the rigorous checks triggered a backlash in Brussels from multinational corporations, exporting nations, rightwing parties and member states with forestry industries.

Experts cite last year's European Parliament elections as a turning point, shifting the balance of power less favorable toward environmental rules.

"The other pressure has come from major export markets outside the EU," noted corporate sustainability professor, implying the EU yielded to some requests during negotiations.

Key Loopholes Introduced

In the final legislation features key dilutions:

• Retailers and traders were mostly exempted from conducting rigorous checks.
• A new exemption for small operators was created.
• A window for further "simplifications" was opened for next spring.
• Only four countries – geopolitical adversaries of the EU – will face the strictest monitoring.

"Instead of tightening rules for companies, it rolled them back," lamented the law's author. "Moving obligations upstream, it lessened the number of responsible firms."

Business Frustration

The delays and changes have also created annoyance for businesses that complied early.

"We feel very annoyed because we invested significant resources into complying," 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."

Official Defense

An EU representative defended the outcome, stating: "The commission has responded to feedback and acted to ensure a pragmatic and balanced application."

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