What do you need to know about the EU Deforestation Regulation?

What is the EU Deforestation Regulation?

The EU has approved legislation that bans the import of seven key commodities (rubber, palm, cattle, coffee, cocoa, soy and wood) if they are linked with deforestation or degradation of forests. This legislation requires businesses to take increased responsibility, ensuring their supply chains are free of deforestation and that operators and traders perform due diligence for their sourcing activities. The requirements will take effect from December 2025 for large traders and operators and from June 2026 for small to medium-sized enterprises (SME).

Implications for businesses and pathways to compliance

The EU Deforestation Regulation (EUDR) has implications for businesses that import to or export from the EU or purchase products that have already entered the EU market. Failure to comply with the legislation can result in market exclusion and fines of up to 4% of annual turnover. Businesses will need to ensure products are deforestation free and are legally produced in the country of origin (including human rights legislation). These conditions must be supported by a due diligence statement.

What do businesses need to know?

Focus areas for businesses include traceability, policy development and risk management strategies. To find out more, watch the webinar delivered by Senior Environmental Consultant Molly Scott. The session:

• provides an overview of the regulation’s objectives and the specific compliance obligations for companies within its scope
• discusses how to align preparation efforts with wider sustainability goals, such as nature and biodiversity assessments
• features real-world examples of how companies are already preparing for the regulation
• offers actionable insights for achieving compliance.

How can Nature Positive help?

If your business needs support seeing the wood from the trees as it prepares for the EUDR, please get in touch. We support businesses across risk and materiality assessments, supplier engagement and capacity building and implementing strategic plans to meet the EUDR’s compliance requirements. Contact us to find out more.