The EU Deforestation Regulation (EUDR) was established on 29 June 2023 to curb deforestation and forest degradation by restricting the import and sale of products linked to deforestation within the European Union. The regulation is designed to combat climate change, minimize biodiversity loss, and protect the livelihoods of indigenous peoples and local communities who rely on forests.
Under this regulation, businesses operating in agriculture, food and beverages, forestry and wood products, automotive, chemicals, manufacturing, textiles, and other industries must ensure that their commodities and products are deforestation-free before they can be sold in the EU market. Companies must conduct due diligence to map supply chains and verify the sources of their relevant commodities, such as palm oil, soy, coffee, cocoa, and timber.
Starting 30 December 2024, large businesses will be required to submit a due diligence statement proving compliance, while 30 June 2025 marks the date when competent authorities will start enforcing the regulation. By 30 December 2025, all businesses in scope must be fully compliant with the EUDR requirements to avoid penalties from member states and the European Commission.
Who is Affected by the EUDR?
The EU deforestation regulation (EUDR) affects businesses in over 55 countries that export an estimated $100M worth of goods to the EU annually. Whether you do business in the EU, work with EU-based companies, or are part of a supply chain that involves commodities covered under the regulation, you will need to prove compliance. This means conducting risk assessments, identifying gaps in your supply chain, and implementing robust due diligence processes to meet regulatory expectations.
EUDR Timeline
