How is the EU helping businesses comply with the deforestation law?
The EU is helping businesses meet the EU Deforestation Regulation (EUDR), with simplified due diligence and targeted support, especially for SMEs, while keeping environmental protections intact.
The European Commission has unveiled new measures to help implement the EU Deforestation Regulation (EUDR). The regulation aims to stop products linked to deforestation or forest degradation from entering the EU market. The Commission’s plan includes a support package for businesses, Member States, and third countries, tackling the technical and administrative challenges identified during the early stages of the law’s rollout.
The Commission aims to ensure that due diligence criteria—covering raw materials such as wood, soybeans, cocoa, pulp, palm oil, and leather—are applied consistently and supported with sufficient resources. Authorities acknowledge that some IT systems, procedures, and supply chains need time and adaptation to operate effectively. As a result, technical support for small operators and improved cooperation between Member States is proposed to prevent misalignments within the EU market.
Trade associations, however, warn that oversimplifying or extending the rules could undermine the legislation’s environmental goals. Striking the right balance between ambition and practicality remains central to the debate. Companies operating in global supply chains are advised to monitor the law’s implementation closely, check their supply chains, and align internal control systems with the new requirements.
UPDATE – What does this simplification entail?
The European Commission has released a simplification review of the EU Deforestation Regulation (EUDR), aiming to reduce administrative burdens while maintaining the regulation’s core objective of minimizing the EU’s contribution to global deforestation and forest degradation. The EUDR, which entered into force in 2023, requires companies placing commodities such as cocoa, coffee, palm oil, soy, beef, timber, and rubber on the EU market to demonstrate that their supply chains are deforestation-free and legally produced according to the laws of the country of origin.
The simplification review responds to concerns raised by industry stakeholders, third-country trading partners, and competent authorities regarding the complexity of due diligence obligations and the readiness of IT systems for full implementation. In particular, the Commission has focused on streamlining due diligence statements, clarifying traceability requirements, and improving guidance on geolocation data submission.
Key elements under consideration include reducing duplication in reporting obligations, providing additional flexibility for small and micro operators, and enhancing interoperability between national customs systems and the EU information system. The Commission also aims to refine risk classification benchmarks for countries, ensuring that high-risk areas receive proportionate attention while avoiding unnecessary burdens on low-risk supply chains.
While simplification is a central goal, the Commission has reaffirmed that environmental integrity remains non-negotiable. The regulation’s core requirement—that products must not be linked to deforestation after December 2020—remains unchanged. Enforcement mechanisms, including penalties and product seizures, will continue to apply. The review is expected to be followed by implementing guidance updates and potential delegated acts. Stakeholders are invited to provide feedback before final adjustments are adopted, with the Commission emphasizing a “smooth but robust” transition phase ahead of full enforcement.
Key takeaways: EU Deforestation Regulation (EUDR)
- Commission introduces support to help businesses comply.
- Due diligence applies to wood, soybeans, cocoa, pulp, palm oil, and leather.
- Support focuses on SMEs and coordination between Member States.
- Companies should check supply chains and align controls.
- Measures aim to keep environmental goals while supporting competitiveness.
