From 30 December 2025 (delayed from 30 December 2024), businesses dealing with deforestation-linked commodities will have to comply with the European Union’s Regulation 2023/1115 on deforestation-free products (EUDR). The EUDR looks to guarantee that products consumed by EU citizens do not contribute to deforestation or forest degradation and will have far reaching implications for businesses and products that are within its scope.

The seven commodities covered by the EUDR are cocoa, coffee, soy, palm oil, wood, rubber and cattle. It also applies to products derived from these commodities, including, for example, beef, leather, chocolate, tyres and plywood.

To supply or sell these products within the EU, or to export these products from the EU, the products must be:

  1. deforestation-free, meaning they do not contain commodities produced on land that was converted from forest to agricultural use after 31 December 2020;
  2. produced in accordance with the laws of the country of production; and
  3. covered by a due diligence statement.

In order to produce a due diligence statement, companies need to collect prescribed due diligence information (including evidence that the product is ‘deforestation-free’) and undertake a risk assessment calibrated to reflect the risks and locations involved. If the risk assessment reveals a more than negligible risk that the products are non-compliant, the company must take mitigating steps to reduce the risk before it can place the product on the EU market or export it. This may take the form of requesting further information from suppliers or carrying out independent surveys or audits to evaluate the information provided.

A flowchart of this process can be found in the PDF. The EUDR also introduces ongoing requirements, such as setting up risk management systems, assisting supply chain partners, reporting, and record keeping.

Compliance with the EUDR will be directly enforced by EU member states’ regulators. The fine for the most substantial and repeated breaches will be at least 4% of EU turnover. Competent authorities can also confiscate products and revenues and exclude companies from public procurement processes. In addition, private parties can submit substantiated concerns to companies or regulators when they consider that an operator or trader is not complying with the EUDR. These can lead to an obligation on a business to notify the regulator about the concern and an investigation by the regulator into potential breaches.

In October 2024, the Commission announced plans to delay the implementation of the EUDR by 12 months. We expect the proposed delay to be approved by the European Parliament and the Council (the Commission has 'invited' them to do so by the end of the year), meaning that the EUDR will apply from 30 December 2025 for large companies and 30 June 2026 for micro- and small enterprises.

The EUDR allows the Commission to evaluate the scope and impact of the EUDR at five-year intervals. In addition, the legislation anticipates that the Commission may extend the EUDR to other biomes, such as grasslands, peatlands and wetlands, in June 2025.

Businesses will be in-scope if they are either an “operator” or a “trader”, as defined under the EUDR. An operator is a natural or legal person who first places a relevant product on the EU market or exports it from the EU market. A trader means any person in the supply chain, other than the operator, who makes the product available on the EU market.

It is the responsibility of the operator or trader to conduct the due diligence, risk assessment and risk mitigation steps that feed into their due diligence statements. By issuing a statement, the company assumes responsibility for the product's compliance and the statement will be accessible to authorities, traders, and the public.

The EU’s imports are one of the biggest global drivers of deforestation, accounting for 36% of deforestation linked to crop products and over 25% of deforestation linked to ruminant livestock products and equivalents.

The EUDR is part of a plan of action to tackle deforestation and forest degradation first outlined in the 2019 Commission Communication on Stepping up EU Action to Protect and Restore the World’s Forests. This commitment was later confirmed in the European Green Deal, the EU Biodiversity Strategy for 2030 and the Farm to Fork Strategy[1]. It closely relates to the subject matter of the EU Timber Regulation (EU) No 995/2010 and supersedes that regulation.

 

[1] The Farm to Fork Strategy is part of the European Green Deal and aims to accelerate the EU’s transition to sustainable food systems, including through legislative proposals, trade policies and international cooperation instruments.