EUDR
European Union Deforestation Regulation
Complying with European Union Deforestation Regulation (EUDR)
Starting 30 December 2025, organizations marketing specific commodities within the European Union must comply with the European Union Deforestation Regulation (EUDR). This includes goods such as cattle, cocoa, coffee, palm oil, rubber, soy, wood, and their derivatives. The EUDR aims to stop deforestation and forest degradation connected to the EU market. It ensures that products sold or exported in the EU meet strict sustainability standards.
The regulation sets a cut-off date of 31 December 2020. Only products sourced from land unaffected by deforestation or forest degradation after this date can enter the EU market.
What is the EUDR?
The European Union Deforestation Regulation ensures that products sold or exported within the EU do not contribute to global deforestation or forest degradation. The regulation addresses environmental and social concerns by requiring businesses to meet three key conditions:
- The products must be deforestation-free.
- They must comply with the laws of the country of production, including those related to land use, labor rights, and human rights.
- They must be covered by a due diligence statement.
The EUDR applies to seven primary commodities: soy, palm oil, wood, coffee, cocoa, cattle, and rubber.
Which organizations need to comply?
Organizations across the supply chain—including farmers, processors, traders, and retailers—must comply with the EUDR. The regulation distinguishes between two types of entities: operators and traders. Both operators and traders must implement due diligence systems to prove compliance. This includes collecting geolocation data to confirm where resources are extracted. The requirement poses challenges, especially for tracking and verifying data throughout the value chain.
To prepare for the EUDR, businesses must work closely with supply chain partners. Building traceability systems, ensuring transparency, and meeting due diligence requirements are critical steps to avoid penalties and maintain market access.
