Global deforestation is one of the greatest threats to our climate, biodiversity, and the livelihoods of millions of people. To address this challenge, the European Union adopted the new EU Regulation to curb trade in products linked to deforestation and forest degradation in May 2023. This regulation, also known as the EU Deforestation Regulation (EUDR) , requires companies to demonstrate deforestation-free supply chains starting December 30, 2025.

What is the EUDR Regulation?

The aim of the EUDR is to prevent the import of products that contribute to global deforestation into the EU market. In particular, the regulation affects raw materials such as palm oil, soy, coffee, cocoa, beef (meat), rubber, and wood , as well as processed products containing these raw materials, such as chocolate, paper, or furniture. The EUDR requires companies to provide evidence that all affected products have not caused deforestation and comply with the legal requirements of the country of origin.

Why was the EUDR created?

The EU contributes significantly to global deforestation, as many agricultural products in the Union are sourced from deforested land. Forests are not only an important carbon sink and habitat for numerous animal species, but they also provide the livelihoods of many indigenous peoples. The EUDR aims to help stop the conversion of forests into agricultural land and reduce pressure on natural resources. Another important aspect is protecting biodiversity and preventing illegal evictions of communities and indigenous peoples.

Which products are affected in the EUDR?

The EUDR applies to various commodities and their derivatives, including:

• Palm oil
• soy
• Coffee
• cocoa
• Beef (but not milk)
• rubber
• Wood products (including paper, furniture, charcoal)

These products must either be deforestation-free or provide a detailed due diligence statement proving that no deforestation was involved in the production of the product. It doesn’t matter whether the products were manufactured in the EU or elsewhere—the EUDR applies worldwide.

The requirements for companies

Companies must demonstrate that their products meet the following conditions:

1. Deforestation-free : Raw materials must not come from areas where deforestation occurred after December 31, 2020. Furthermore, harvesting must have been carried out in a manner that does not harm the forest ecosystem.
2. Compliance with the laws of the producing country : In addition to EU requirements, producers must comply with the national environmental protection laws, labor rights and human rights regulations of the producing country.
3. Due Diligence Declaration : A key obligation for companies is the preparation and submission of a due diligence declaration. In this declaration, companies must demonstrate that they have collected all relevant information regarding the origin and production methods of their products and that the risks related to deforestation and forest degradation have been assessed.

How does due diligence work?

Companies that place raw materials or products on the EU market must ensure that their products are deforestation-free through a three-step due diligence process:

1. Information collection : Companies must collect information about their products, such as origin, quantity, and production methods. This includes using geolocation data to trace the origin of raw materials.
2. Risk assessment : Based on the collected data, companies must conduct a risk assessment. This assessment considers whether the product originates from a country with a high risk of deforestation. Products from high-risk countries are subject to stricter requirements, requiring more detailed analysis and additional risk mitigation measures.
3. Risk mitigation : If a company identifies a risk of deforestation, it must take measures to mitigate that risk. This can be done by switching to more sustainable raw material sources or by implementing additional controls on suppliers.

When does the EUDR Regulation come into force?

The EUDR will enter into force in stages :

• From 30 December 2025 : The regulation applies to large and medium-sized enterprises.
• From 30 June 2026 : Small and micro-enterprises will then also have to meet the requirements of the EUDR.

This phased approach is intended to ensure that companies have sufficient time to prepare for the new regulations. Companies must submit their due diligence declarations and all relevant documentation via the EU digital information system TRACES .

Challenges and criticism

Although the EUDR is a significant step toward protecting global forests, it also presents challenges and challenges. Some companies fear that the additional documentation requirements and the associated bureaucracy will represent a significant burden. Small businesses, in particular, face the challenge of implementing the extensive requirements without the necessary infrastructure.

There are also uncertainties about how exactly the various requirements will be implemented and how the regulation will affect companies’ procurement costs. It remains to be seen how the regulation will affect international trade, especially if companies in less regulated countries could rely on less stringent regulations.

What does this mean for companies?

Companies must prepare for the new regulations by making their supply chains transparent and ensuring that all relevant data on the origin and production of their products is available. To meet the requirements, companies should take early steps to audit their suppliers and document their due diligence obligations.

The EUDR ensures that companies operate more sustainably in the long term and assume responsibility for their supply chains. Those who adapt in a timely manner can not only ensure compliance with the new requirements but also make an active contribution to environmental protection.

Conclusion

The EU Deforestation Regulation (EUDR) is a crucial step in combating global deforestation and presents companies with new challenges. Starting in 2025, companies will not only be required to bring deforestation-free products to the EU market, but will also be required to provide comprehensive evidence of the origin and sustainability of their products. This regulation will help protect forests and their biodiversity worldwide and combat global climate change.

Companies that prepare early for the requirements of the EUDR have a clear competitive advantage when it comes to implementing sustainable supply chains.

If you have general questions about the EUDR Regulation or would like to know what it means specifically for your company, please feel free to contact our experts! We are here for you!