Holzstapel an einer Weggabelung im Wald

The EU Regulation on Deforestation: What Companies Can Expect

Since the enactment of the EU Deforestation Regulation (EUDR) in 2023, there have been significant developments. Most recently, in July 2026, the EU Commission postponed the application of the EUDR and further clarified the scope of products and the informational system. An overview.

The world's forests are pivotal for species conservation and climate protection and must be preserved – a stance agreed upon by the business community. With its Deforestation Regulation, however, the EU pursued an approach that would place heavy demands on many companies.

The essentials: What the EUDR states

The "EU Deforestation Regulation" (EUDR), which came into force in mid-2023, aims to prevent the import and trade of products associated with deforestation or forest degradation. Specifically, the regulation covers raw materials such as soy, palm oil, wood, rubber, cattle, cocoa, and coffee, as well as numerous products made from them.

The EUDR requires companies to provide evidence that these products were not produced on land deforested after 31 December 2020, that their production complies with the laws of the producing country, and that a due diligence statement exists for them. These due diligence statements are to be submitted through the EUDR information system.

Businesses affected must gather information, documentation, and data on the origin of their products, including details on the geolocation of production areas. Depending on whether the EU ranks the producing country as high, normal, or low-risk in its benchmarking, a risk assessment of varying detail must be undertaken. If necessary, companies are required to take risk mitigation measures – for instance, employing satellite monitoring tools, carrying out on-site inspections, or building capacity with their suppliers.

Postponements and Improvements

The key provisions of the "EU Deforestation Regulation" (EUDR) were originally intended to apply from 30 December 2024. However, due to significant concerns from member states, third countries, and businesses, an initial one-year delay was decided by late 2024. 

Challenges in its implementation – particularly concerning the required EU informational system, the provision of geodata, and obligations within downstream supply chains – persisted. Consequently, the EU Commission proposed further postponements and simplifications as early as October 2025. 

On 4 December 2025, the European Commission, the Council, and the European Parliament agreed on postponements and adjustments. On 16 December, this trilogue agreement was formally adopted by the European Parliament's plenary. An updated version of the regulation incorporated many suggestions from the German Chamber of Commerce and Industry:

  • The application of the EUDR is postponed by another twelve months – until 30 December 2026 for large and medium-sized enterprises, and until 30 June 2027 for small and micro-enterprises.
  • Additionally, a 'once-only' approach will be applied to the supply chain. This means that only the first distributor will be required to submit a due diligence statement, and the first operator in the downstream supply chain must store the EUDR reference number. Initially, larger actors would have been required to establish a due diligence system, continuously collecting data and documentation regarding their products’ sources.
  • For the smallest and small primary producers from countries with low risk, a one-time registration in the EU system and a simplified due diligence statement will suffice.
     

New Adjustments in 2026

Lastly, the Council instructed the EU Commission to examine further options for relief by April 2026.

In January 2026, the German Chamber of Commerce and Industry published a catalogue of demands concerning this review. Proposed measures ranged from abolishing the requirement to archive reference numbers for downstream market participants and traders to linking the regulation with complementary trade and development policy measures. Details are available in the German Chamber of Commerce and Industry’s statement on the EUDR review dated 30 January 2026 (PDF, 221 KB)

In May 2026, the Commission published updated guidelines and FAQs based on the review's findings

In July 2026, additional measures were adopted:

  • Further adjustments were made to the scope of products under the EUDR. Cattle hides, skins, and leather, retreaded tyres, soybean seeds, and certain rubber products are now excluded. However, instant coffee, certain palm oil derivatives, and frozen beef tongues are newly included, effective 30 December 2027.
  • The Commission also specified new technical requirements for the EU informational system in July 2026. Updates include simplified declarations for micro and small primary producers and updated technical interfaces (APIs) for automated data submission. The system reopened in late June 2026 and will gradually be expanded with additional features. 

Where can I learn more?

The Federal Office for Agriculture and Food (BLE), responsible for implementing the EUDR in Germany, answers questions via anfragen@entwaldungsfreie-produkte.de and has compiled all relevant information about the regulation on its website: Who is affected? How does the EU information system work? What should be considered for customs declarations? Diagrams, explanatory videos, FAQs, event notes, legal bases, and much more can be found at www.ble.de.

The EU information system can be accessed at green-forum.ec.europa.eu. It reopened at the end of June 2026 and is being gradually developed further by the European Commission. In addition to access to the system itself, there is also a training platform, videos, tutorials, and more. 

All information and resource links are also provided by the European Commission under environment.ec.europa.eu

The consulting service of the Helpdesk for Business and Human Rights can be accessed via telephone (+49 30 2130 8430-0) or email (kontakt@helpdeskwimr.de).

Background

Key areas:
  • Environment
  • Supply Chains
  • Raw Materials

Contact

Porträtfoto Olga van Zijverden

Olga van Zijverden

Director Foreign Trade Policy