The European Commission has confirmed that the EU Deforestation Regulation (EUDR) will come into effect at the end of December 2025. The regulation aims to ensure that products sold within the European Union, such as cocoa, soy, palm oil, rubber and wood, are not linked to deforestation or forest degradation.
This confirmation provides greater certainty for companies across the supply chain, from producers to importers. Under the EUDR, businesses must demonstrate that their raw materials are sourced from land not deforested after 31 December 2020, and that production complies with relevant environmental and human rights legislation.
Lighter requirements for small enterprises
To reduce administrative burdens, micro and small enterprises will face simplified reporting obligations. They must still ensure that their products are deforestation-free but are not required to submit a full due diligence statement.
Larger companies, however, will need to conduct and document comprehensive due diligence procedures, verifying and reporting on the origin of their raw materials.
Additional preparation time
While the regulation will apply from the end of 2025, penalties for non-compliance will take effect from June 2026. This transition period allows businesses to align their processes, traceability systems and supplier documentation with the new requirements.
Impact on the supply chain
The EUDR will significantly affect industries such as food manufacturing, cocoa and chocolate production, packaging, paper and furniture. Companies will require greater visibility into their suppliers, production chains and sourcing practices.
By enforcing the EUDR, the EU aims to promote deforestation-free and transparent trade. The EU is estimated to account for around 16% of global deforestation through imports of high-risk commodities.
