EU Commission Introduces Key Changes to Simplify Deforestation-Free Supply Chain Law

In a major regulatory update, the European Commission has announced a series of simplification measures to ease the application of the EU Deforestation Regulation (EUDR)—a groundbreaking law designed to prevent deforestation-linked products from entering or exiting EU markets.

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About the EUDR: A Landmark in Global Deforestation Policy

Introduced in November 2021 and entering into effect in June 2023, the EUDR mandates that companies placing products on the EU market—or exporting from it—must prove that those goods were not produced on land subject to deforestation after December 31, 2020. The regulation targets key commodities such as palm oil, beef, soy, timber, cocoa, rubber, and coffee, as well as products derived from them like leather, furniture, tires, and chocolate.

At the heart of the law is a mandatory due diligence obligation: companies must trace products to the exact plot of land where they were produced and verify legal compliance in the country of origin.

Simplification Measures: Reducing Burden, Maintaining Ambition

In response to global and domestic stakeholder feedback, the Commission unveiled new flexibilities to reduce administrative complexity—especially for small and medium enterprises (SMEs)—without undermining the regulation’s core environmental objectives.

Among the key updates:

Annual Due Diligence Submissions:

• Companies can now submit one due diligence statement annually, instead of for every shipment or batch.
• Reuse of Statements for Reimports:
• Large companies may reuse existing due diligence statements when reimporting goods that were previously placed on the EU market.
• Delegated Submissions:
• Authorized representatives will be permitted to file due diligence statements on behalf of company group members.

Simplified Traceability Verification:

Instead of tracing upstream due diligence, companies may now collect and cite reference numbers from suppliers’ declarations to fulfill verification requirements.

According to the Commission, these simplifications are expected to cut compliance costs by up to 30%, while still aligning with the regulation’s intent to halt global deforestation and forest degradation.

Policy Context: A Broader Push for Competitiveness

These changes are aligned with the EU’s wider agenda to enhance regulatory efficiency. In January 2024, the Commission released its “Competitiveness Compass,” a strategic roadmap aimed at restoring Europe's global competitiveness. Key among its goals is a 25% reduction in reporting burdens for all businesses, and 35% for SMEs.

The EUDR had faced implementation delays, with the Commission pushing back full applicability by one year for large companies (now end of 2025) and SMEs (mid-2026), citing uneven preparedness both globally and within the EU itself.

Commission Statement: Clarity and Collaboration Are Key

“We are committed to implementing EU rules on deforestation in a spirit of close partnership, transparency, and open dialogue,” said Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy.

“Our aim is to reduce administrative burden for companies while preserving the goals of the regulation. We will continue to work very closely with all stakeholders to ensure that our rules deliver on reducing global deforestation and forest degradation in the least burdensome way for companies.”

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