The EU Deforestation Regulation (EUDR) requires companies to prove that certain commodities they trade with (such as cocoa, coffee, palm oil, soy, rubber, beef and timber) do not come from deforested or degraded land after Dec. 31, 2020. The aim of the regulation is to protect the EU market from products that contribute to global deforestation and to promote sustainable supply chains.
Implementation timeline
- For large and medium-sized companies:
The regulation was originally scheduled to take effect on Dec. 30, 2025, but the European Commission has proposed delaying implementation by one year due to concerns about IT system readiness.
- For micro and small businesses:
The original effective date was June 30, 2026, but this may also be delayed depending on the adoption of the proposal.
- Exception: small/micro enterprises in the timber sector. There is no postponement for that.
What does this mean for businesses?
Companies trading in commodities covered by the EUDR must perform due diligence (due diligence) to demonstrate that their products are not linked to deforestation or degradation after Dec. 31, 2020. This includes:
- Collection of provenance documentation.
- Conducting risk assessments
- Take measures to mitigate identified risks
Possible delay
Although implementation was originally planned for the end of 2025, the proposed postponement to the end of 2026 is not yet final. It still requires approval from the European Council and the European Parliament.
Start preparing now
Even if a delay seems imminent, it is wise to start preparing now. The best preparations you can make are listed below:
- Identify relevant products. Check that the commodities you trade with are among the seven core products covered by the EUDR.
- Collect provenance documentation. Collect detailed information on the origin of products, including geographical coordinates of production sites.
- Conduct risk assessments. Assess the risk of deforestation or degradation in production areas.
- Implement mitigation measures. Take appropriate steps to reduce or prevent identified risks.
- Stay informed. Follow developments around the adoption of the deferral and adjust your compliance planning accordingly.
- Submit information through TRACES. Ensure correct documentation and traceability within the EU TRACES system.
What information must be supplied in TRACES?
- Origin of products (for timber: origin or felling/harvesting period)
- GPS coordinates
- Supplier details (name, address and contact information).
- Proof of legality and that production is deforestation-free (e.g., FSC certificate or logging permit)
- Quantities (in kilograms)
Need help?
Do you need support in understanding the EUDR, preparing TRACES submissions or performing due diligence?
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