Understanding the EU Deforestation Regulation (EUDR): A Step Toward Sustainable Global Supply Chains

The European Union Deforestation Regulation (EUDR) represents a pivotal milestone in global efforts to curb deforestation and forest degradation linked to international trade. Adopted in June 2023 under Regulation (EU) 2023/1115, it establishes stringent rules to ensure that products consumed within the EU do not contribute to the destruction or degradation of forests worldwide [1][2]. As one of the world’s largest importers of commodities tied to deforestation, the EU aims to use its market influence to promote more sustainable supply chains and reduce its carbon footprint.

What Is the EUDR?

The EUDR entered into force on 29 June 2023, succeeding the EU Timber Regulation (EUTR). Its principal goal is to guarantee that certain products sold in or exported from the EU are both deforestation-free y legally produced. The law covers seven key commodities: cattle, cocoa, coffee, palm oil, rubber, soy, and timber, as well as derived products such as leather, chocolate, furniture, and tyres [1][3].

Under the EUDR, operators and traders placing these goods on the EU market must be able to demonstrate that they:

1. Are deforestation-free, meaning they were not produced on land deforested or degraded after 31 December 2020.
2. Comply with the relevant laws of the country of production.
3. Are accompanied by a due diligence statement, confirming that the company has assessed and mitigated any deforestation risks [2][4].

Large and medium-sized enterprises will be required to comply from 30 December 2025, while micro and small enterprises have until 30 June 2026 to meet the same obligations [1][5]. For timber products produced before June 2023, the earlier EUTR will remain in effect until 31 December 2027 [1].

Why the EUDR Matters

The EUDR is not merely a trade regulation, it is a cornerstone of the EU’s climate and biodiversity strategies. By addressing deforestation driven by agricultural expansion, the regulation supports commitments made under the European Green DealEl EU Biodiversity Strategy for 2030y el Farm to Fork Strategy [1][2].

According to the World Resources Institute, the EU accounts for roughly 16% of global deforestation linked to international trade, second only to China [4]. In 2017 alone, EU imports were associated with approximately 203,000 hectares of forest loss. By focusing on the commodities most responsible for deforestation, notably beef, palm oil, soy, cocoa, coffee, and rubber, the EUDR aims to reduce emissions by an estimated 32 million metric tonnes of CO2 annually and restore degraded ecosystems [1][4].

Beyond environmental protection, the regulation encourages traceability, accountability, and innovation in global supply chains. For businesses, it provides a framework to future-proof operations against growing ESG expectations and emerging global deforestation laws.

Core Components and Implementation Mechanisms

The EUDR’s implementation relies on several key mechanisms:

Component	Descripción
Due Diligence System	Companies must collect geolocation data, assess deforestation risks, and submit a due diligence statement to the EU information system before placing goods on the market.
Benchmarking System	The European Commission classifies countries (or regions) as low, standardo high risk based on deforestation rates and governance indicators. Products from low-risk areas face simplified due diligence requirements.
Competent Authorities	EU Member States must designate authorities to monitor compliance, verify company submissions, and conduct inspections.
Information System	Launched in December 2024, this digital platform registers due diligence statements and facilitates traceability throughout the supply chain [1][2].

These tools are supported by the EU Observatory on Deforestation and Forest Degradation, which uses satellite monitoring (e.g., Copernicus data) to track changes in global forest cover and inform enforcement decisions [1].

Challenges and Recent Developments

Despite its strong ambition, the EUDR faces significant implementation challenges. In December 2024, the EU granted a 12-month delay to provide companies more time to prepare [4][6]. Further adjustments followed: in October 2025, the European Commission confirmed that while the EUDR will still apply from January 2026, new simplifications and exemptions were introduced for small and micro-operators [6].

These changes mean that smaller firms in low-risk countries will only need to submit a one-time simplified declaration, rather than full due diligence documentation [6]. Similarly, downstream traders, including manufacturers and retailers, are now exempt from direct due diligence obligations, needing only to record reference numbers from suppliers’ due diligence statements [6]. While these simplifications aim to ease administrative burdens, NGOs like Greenpeace and the Environmental Investigation Agency (EIA) warn that such exemptions could weaken enforcement and create regulatory loopholes [6][7].

The EUDR has also faced political pushback. Some EU member states have called for further delays, citing technical difficulties with the IT platform and the need to protect smallholder farmers [4][7]. However, the European Parliament and civil society groups argue that postponements would undermine the EU’s credibility and climate commitments.

Global and Industry Responses

The EUDR’s influence extends far beyond Europe. Many producer countries have begun aligning national policies to meet EU import standards. For instance, Vietnam launched a national coffee traceability system in 2024, using satellite data and cadastral mapping to verify EUDR compliance [4]. Similarly, Indonesia and Ghana are developing national data platforms and sustainability frameworks to support exporters.

In the private sector, multinational firms are investing heavily in traceability technologies and farmer training. Companies such as Unilever y Meridia are mapping smallholder supply chains to ensure deforestation-free sourcing of palm oil, while the Global Platform for Sustainable Natural Rubber (GPSNR) y Global Forest Watch are providing open-access tools to track land-use change [4].

These initiatives illustrate how the EUDR is reshaping global markets, shifting compliance from a regulatory obligation to a driver of sustainable innovation.

Risks of Weakening or Delaying the Regulation

Environmental groups and several major corporations have warned that repeated delays or diluted enforcement could jeopardize years of progress toward sustainable trade. The EIA cautions that broad exemptions for small and micro-operators may undermine harmonised EU oversight, while Greenpeace has accused the Commission of yielding to lobbying pressures from industry and national governments [6][7].

Such rollbacks could not only weaken forest protections but also disadvantage businesses that have already invested in compliance. Conversely, upholding the regulation’s integrity would reinforce the EU’s position as a leader in global environmental governance and encourage other major economies to adopt similar frameworks.

Reflexiones finales

The EUDR marks a defining moment in the EU’s pursuit of sustainable trade and environmental accountability. By mandating transparency and due diligence across high-risk supply chains, it seeks to balance economic interests with ecological responsibility. While implementation hurdles remain, the regulation’s potential to transform global commodity production is undeniable. Ensuring its timely and robust enforcement will be crucial to achieving the EU’s broader climate and biodiversity objectives, as well as maintaining fairness for compliant producers worldwide.

The success of the EUDR will depend on continued cooperation between governments, businesses, and civil society, all working toward a shared vision of deforestation-free trade by 2030.

Referencias:

[1] European Commission. Regulation on Deforestation-free Products (2023). Available at: https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
[2] FSC. EUDR Explained (2023). Available at: https://fsc.org/en/eudr-explained
[3] Business.gov.nl. EUDR: What Does the Deforestation-free Products Regulation Mean for You? (2024). Available at: https://business.gov.nl/sustainable-business/environment/what-does-eudr-mean-for-you/
[4] World Resources Institute. Explain the EU Deforestation Regulation (2025). Available at: https://www.wri.org/insights/explain-eu-deforestation-regulation
[5] Euractiv. EU Plans Deforestation Delay Only for Small Businesses (2025). Available at: https://www.euractiv.com/news/eu-plans-deforestation-delay-for-small-operators-big-players-excluded/
[6] Environmental Investigation Agency. EU Commission Holds the Line on Deforestation Regulation Start Date but New Loopholes Are Opened (2025). Available at: https://eia-international.org/news/eu-commission-holds-the-line-on-deforestation-regulation-start-date-but-new-loopholes-are-opened/
[7] Greenpeace EU. EU Commission Backs Weakening of EU Deforestation Law (2025). Available at: https://www.greenpeace.org/eu-unit/issues/nature-food/47787/eu-commission-backs-weakening-of-eu-deforestation-law/