English flag

en

German flag

de

Login
HomeEUDRAbout usBlogPress
English flag

en

German flag

de

January 15, 2025

Navigating the EU Deforestation Regulation (EUDR): an overview of the regulation and its implications for businesses

Blog Post Image

The EU Deforestation Regulation (EUDR) establishes new mandatory requirements for traders, buyers, and processors of seven critical commodities, including cocoa, coffee, and soy. Its primary goal is to prevent products associated with deforestation from entering or leaving the EU market. 

This article offers an overview of the EUDR and its implications for businesses to achieve compliance.

Affected commodities:

What is the deforestation regulation about?

Global deforestation is progressing at an alarming rate, with severe consequences for biodiversity, climate regulation, water resources, and natural habitats. According to the United Nations Food and Agriculture Organisation (FAO), 10 percent of the world’s forests were lost between 1990 and 2020, with nearly 90 percent of this deforestation driven by the expansion of agricultural land.

To tackle this global challenge and mitigate deforestation, the EUDR requires companies dealing with selected raw materials or related processed products derived from the critical commodities to prove that no deforestation has occurred in the respective cultivation areas since 31 December 2020. Following its re-publication in the Official Journal of the EU, the EUDR will come into effect on 30 December 2025, for large operators and traders, and on 30 June 2026, for micro- and small enterprises after a one-year delay.

EUDR Requirements 

Relevant raw materials and products (as listed in Annex I of the EU Deforestation Regulation) may not be sold, offered, or exported unless they are

Deforestation-free

Geo-data for farm plots must be collected, a risk analysis must be conducted, and mitigation measures for deforestation and forest degradation must be implemented if a risk is detected with a moderate or high level.

In line with national laws 

Products must be manufactured in compliance with the relevant legislation of the country of origin, including, among others, regulations on land use, labour, and human rights.

Covered by a Due Diligence Statement (DDS)

A due diligence statement must be submitted to the EU Information System covering a summary of required information, data, and documents, as well as risk assessment measures and risk mitigation measures.

By successfully implementing and automating EUDR-related processes, companies ensure the continued ability to import and trade within the European Union, which would otherwise be impossible from the end of 2025. Additionally, compliance with the regulation helps to avoid penalties of up to four percent of annual revenue.

How should companies tackle EUDR compliance?

Given the complexity of the EUDR, early preparation is essential. Collecting the necessary primary data is a challenging and incremental process that requires close collaboration with multiple partners across the value chain. The one-year delay of the EUDR, implemented due to pressure from national governments and businesses, should be seen as an opportunity—a critical phasing-in period to lay the groundwork for proper and effective compliance.

The initial step is to identify due diligence requirements. Multiple roles and obligations may apply depending on the company's specific context and individual setup. This includes all food processing steps, connections between various countries, and goods entering and leaving the EU, maybe even several times. Key tasks involve collecting geo-data, analysing deforestation risks, verifying compliance with national regulations, and preparing the due diligence statement required for EU submission. Incorporating batch-level traceability into workflows will be pivotal for achieving long-term success.

To gain a clear understanding of how your business is affected, the specific requirements to be met, and actionable steps toward compliance, check out our tailored workshop offer here.

The role of traceability

The new EU regulation on deforestation-free products emphasises the importance of knowing the source of commodities and promoting ethical practices. Establishing traceability within the supply chain not only enables companies to demonstrate accountability with concrete data but also increases transparency, potentially reducing the number of intermediaries. Products that meet the requirements of the EUDR will have a competitive advantage in meeting the growing demand for sustainably sourced products. Additionally, traceability lays the groundwork for improvements in raw material sourcing and operational processes. Collaboration with suppliers and local NGOs can be strengthened, fostering the development of new partnerships and shared solutions.

How does Seedtrace help?

The Seedtrace platform empowers you to implement traceability and monitor potential deforestation across your global supply chains. Our specially developed digital compliance guide, along with the Seedtrace team, supports customers step by step through the EUDR requirements. The tool enables seamless collaboration with your partners on geo-data collection and legality self-assessments. For each of the seven key commodities—cocoa, coffee, palm oil, soy, rubber, timber, and cattle—as well as their derivative products like chocolate, leather, and furniture, our solution offers precise monitoring of forests, plantations, and fields worldwide. Find out more about our EUDR solution here.

Ready to take your first step?

No spam, no obligation, no data hunting. We promise.