Insights
Update on the EU Deforestation Regulation (EUDR)
May 20, 2026On 4 May 2026, the EU Commission published a report on the simplification of the revised EU Deforestation Regulation (EUDR), alongside further simplification measures.
The Commission’s objective is to ensure that the regulation successfully enters law by 30 December 2026, and to facilitate its implementation for large and medium companies.
Background
The EU Deforestation Regulation aims to ensure that key goods placed on the EU market do not contribute to deforestation and forest degradation, both within the EU and globally. The regulation covers the following seven commodities: cattle, wood, cocoa, soy, palm oil, coffee, and rubber, alongside some of their derived products.
Under the Regulation, any operator or trader who either places these commodities on the EU market or exports from it, must be able to prove that the products do not originate from recently deforested land and have not contributed to forest degradation. Heavy sanctions apply in cases of non-compliance.
In scope products are limited to those listed in Annex I to the regulation. All industries are potentially covered, as the regulation is sector agnostic.
Obligations will fall on a variety of companies, including those located outside of the EU (e.g. for distance sales).
The Regulation will apply from 30 December 2026 for large and medium companies, as well as for micro and small enterprises from the timber sector. It will apply from 30 June 2027 for other micro and small enterprises.
May 2026 Update
The updated measures include a report to the European Parliament and the Council, an updated guidance document and Frequently Asked Questions, and a draft delegated act on the product scope of the EUDR. In addition, the Commission is presenting an updated implementing act on the EUDR Information System to Member States.
- The report predicts that the simplification measures will substantially reduce the administrative burden compared to the original EUDR, with the expectation of reducing approximately 75% of annual compliance costs for companies subject to EUDR obligations. It also presents the planned establishment of trade facilitation tools, such as repositories of legislation for countries producing in-scope products and certification schemes for commodities under the EUDR. These measures are designed to facilitate risk assessment and due diligence.
- The draft delegated act incorporates targeted amendments to the EUDR product scope. The draft proposes additions of certain downstream products, such as soluble coffee and certain palm oil derivatives. It also proposes several exclusions of the scope, such as leather or retreaded tyres, as well as exemptions such as product samples, certain packing materials, used and second-hand products, and waste. The draft Delegated Act is open for public feedback until 1 June 2026.
- The updated guidance document and Frequently Asked Questions address the topics most frequently raised by stakeholders. Both documents provide further clarification of obligations for the downstream supply chain, and the very simplified specific regime applicable to micro and small primary operators. Explanations are provided on issues such as e-commerce and geolocation modalities.
- The updated EUDR supply chain infographics also offer user-friendly practical examples illustrating the various supply chain scenarios.
- In parallel, the Commission is updating the Information System to reflect the changes introduced by the revised Regulation and to enhance the user friendliness of the system.
- Report to the European Parliament and the Council on Simplification Review of EUDR - Environment
- Deforestation – proposal to amend and simplify the rules and make technical fixes to Annex I
- FAQ on EUDR Implementation - Environment - European Commission
- Guidance Document for Regulation (EU) 2023/1115 on Deforestation-Free Products - Green Forum
- EUDR supply chain infographics (4th edition) - Publications Office of the EU
- Understand Due Diligence - Green Forum - European Commission
Related Capabilities
-
ESG Governance, Compliance and Reporting
-
ESG & Energy Transition
-
Environment
-
Regulation, Compliance & Advisory
-
M&A & Corporate Finance
-
Corporate