Simplification of EU deforestation law: everything you need to know
The European Commission has released its official simplification review of the EU Deforestation Regulation (EUDR), confirming a significant reduction in the expected administrative burden for companies. According to the Commission, the simplification measures introduced since the regulation’s adoption have lowered annual compliance costs by approximately 75%, with the majority of savings benefiting micro and small operators. At the same time, the Commission has resisted political pressure to reopen or delay the core elements of the law. The EUDR’s substance remains intact, and the implementation timeline continues to move forward, providing clarity for companies that have already invested in compliance preparation.
EUDR explained: new EU guidance
The EUDR (European Union Deforestation Regulation) is a European law intended to combat deforestation and forest degradation worldwide. As of 30 December 2026, companies must be able to demonstrate that specific products (such as cocoa, coffee, soy, palm oil, wood, rubber, and beef) do not originate from recently deforested land.
The EU Deforestation Regulation aims to ensure that products placed on or exported from the EU market do not contribute to global deforestation or forest degradation. It applies to commodities such as: cattle, soy, palm oil, coffee, cocoa, rubber or wood.
Companies must be able to prove, through geolocation data, due diligence, and risk assessments, that their products are deforestation‑free and legally produced.
The regulation is one of the most ambitious global attempts to curb deforestation linked to international trade, and it has far‑reaching implications for supply chain transparency, data management, and ESG reporting. Initially, the EUDR was set to come into force at the end of 2024. It was delayed by a year at the request of the Commission to give companies more time to prepare for its compliance obligations.
Simplification measures deliver major cost reductions
The Commission’s review outlines a series of simplification measures that collectively reduce the estimated annual compliance cost from €8.1 billion to €2.0 billion. Several factors contributed to this dramatic reduction:
1. A simplified regime for micro and small operators
The largest cost savings come from streamlined requirements for smaller companies. These include:
- reduced documentation
- simplified due diligence steps
- more flexible reporting obligations
This adjustment addresses concerns that SMEs would face disproportionate administrative burdens.
2. Expanded classification of low‑risk countries
More countries have now been designated as low‑risk, reducing the intensity of due diligence required for operators sourcing from these regions.
3. Annual due diligence statements
Companies can now submit annual statements rather than per‑shipment declarations, significantly reducing administrative workload.
4. Clearer guidance and digital improvements
The Commission has committed to improving the usability of the EU’s central reporting platform and providing clearer instructions for risk assessment and geolocation data.
Scope adjustments: leather exemption
As part of the review, the Commission released a draft delegated act proposing several scope adjustments. These include:
- Exempting leather from the EUDR
- Excluding retreaded tyres, product samples, certain packaging materials, and used or second‑hand products
- Adding new downstream products, such as soluble coffee and specific palm oil derivatives
The leather exemption is particularly notable, as it removes a major compliance challenge for European importers and manufacturers. However, cattle — the upstream commodity — remains within scope.
No delay, no dilution: Timeline remains firm
The EUDR has already experienced timeline adjustments. Initially planned for late 2024, the regulation was postponed to give companies more time to prepare. Following negotiations between the European Parliament and Council, the updated implementation deadlines are:
- End of 2026 for large companies
- Mid‑2027 for small operators
The new review does not introduce additional delays, easing concerns among environmental groups and companies that have already invested in compliance systems.
WWF welcomed the Commission’s stance, calling it a shift from “political scaremongering to practical implementation” and urging the EU to maintain strong enforcement.
Simplification helps, but action is still required
The European Commission’s simplification review offers welcome relief for companies — especially SMEs — by reducing compliance costs by 75% and clarifying key requirements. However, the core ambition of the EUDR remains unchanged: eliminating deforestation from EU supply chains.
Businesses that act now will not only ensure compliance but also strengthen their ESG performance, build more resilient supply chains, and meet growing stakeholder expectations.
