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It was a landmark piece of legislation that would combat the worldwide scourge of deforestation.

However, the revised version of the European Union's anti-deforestation law, previously heralded as the flagship policy of the European Green Deal, has been passed in a significantly diluted state, prompting alarm from its original architect and green lawmakers.

"The regulation was gutted," stated the law's original author, citing the exclusion of key obligations for downstream traders to verify the origin of products like palm oil, soy, wood, beef, rubber, cocoa and coffee.

Schally cautioned that a reduced number of responsible companies, less information collected, and imprecise sourcing details would make enforcement and prosecution more difficult.

Political Dismantling

Green party vice-president a leading green politician was more blunt, describing the postponements, exceptions and new loopholes – including one for paper goods – as the "political dismantling" of the law.

This final text stands in stark contrast to the hopes of more than a million European citizens who signed a petition in 2020 demanding a prohibition of deforestation-linked products.

When launched in 2021, the EU's climate chief the European commissioner called it "the toughest legislation proposed to combat deforestation."

A Story of Dilution

The law's unravelling has been interpreted as the EU walking back its green talk. It faced significant delays, reportedly over IT issues, which drew condemnation.

"By reopening this file rather than fixing a simple IT problem, authorities invited political interference," commented Toussaint.

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

"This was not red tape for its own sake," Schally explained. "These rules were the tool that made the rules enforceable, created a verifiable paper trail, and prevented firms from obscuring their activities behind complex supply chains."

Intense Lobbying

Yet, the strict due diligence triggered a backlash in Brussels from large companies, exporting nations, conservative political groups and member states with forestry industries.

Analysts point to last year's European Parliament elections as a turning point, shifting the balance of power more skeptical of green regulations.

"Additional intense pressure came from major export markets outside the EU," noted corporate sustainability professor, implying the commission gave in to some demands in trade talks.

Key Loopholes Introduced

The passed law features key dilutions:

• Downstream operators were mostly exempted from conducting rigorous checks.
• A new “low risk” category was created.
• A window for further "simplifications" was opened for next spring.
• Only a handful of nations – geopolitical adversaries of the EU – will face the strictest monitoring.

"Instead of tightening downstream obligations, 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 caused frustration for businesses that complied early.

"It is very frustrating because we put a lot of effort into preparing," stated Xavier Rombouts. "We invested in software, followed seminars and built a team... now they’re saying it could be altered again. It’s a major letdown."

Official Defense

An EU representative supported the final law, stating: "The commission has responded to concerns and acted to ensure a pragmatic and balanced application."

"The revised regulation provides for predictability, which is crucial for companies and competent authorities to effectively enforce this very important law."