EU Deforestation Regulation (EUDR)

EUDR strengthens EU rules to protect forests and reduce emissions, requiring EU businesses to carry out mandatory due diligence and eventually replacing the EU Timber Regulation (EUTR). This piece of legislation is currently under review by the EU with simplified elements expected in 2026. The updated date of implementation is from 30th December 2026.

Frequently Asked Questions

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What is the Key Difference from EUTR:

While EUTR focuses on legal timber sourcing, EUDR requires operators to ensure their supply chains are deforestation and degradation–free, not just legally sourced.

Which commodities are covered?

  • Soy, Cattle, Palm Oil, Timber, Cocoa, Coffee & Rubber (subject to future updates).

What is a Deforestation–Free Product?

  • Any product, ingredient, or derivative not produced on land subject to deforestation or forest degradation.

Who is responsible in the supply chain?

  • Operators: First to place products on the EU market; must implement due diligence to ensure deforestation-free sourcing.
     
  • Traders: Handle, store, or trade products; maintain and share supply chain information with operators.

What is the Country Benchmark System?

The European Commission (EC) are expected to classify countries by deforestation risk; no risk, low risk, standard risk and high risk.

Products from low–risk countries may use a simplified due diligence procedure.

Following the delay, what are the Key Changes & Simplifications?

  • Phased Rollout: A further one-year delay for large/medium and an additional six months for small/micro businesses.
     
  • Simplified Due Diligence: Only the first operator placing products on the EU market submits the due diligence statement; subsequent actors only need to keep the reference number.
  • Reduced Scope: Specific printed paper products (like books, newspapers) have been removed due to limited deforestation risk.
     
  • Support for Small Producers: Micro and small primary producers get simplified declarations.
     
  • Supportive Review: The Commission committed to a simplification review by April 2026 to further reduce burdens. 

What are the proposed penalties for non–compliance?

  • Fines: Up to 4% of turnover, proportional to environmental damage and product value.
     
  • Confiscation: Non–compliant products and associated revenue.
     
  • Temporary Exclusion: From tenders or EU market access for up to 12 months.
     
  • Suspension: From using the simplified due diligence procedure.

How does EUDR support corporate sustainability?

  • Compliance helps businesses meet sustainability targets, align with emissions reduction strategies, and demonstrate responsible sourcing to customers and stakeholders.
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