EU Deforestation Regulation

The EUDR at a glance

On 29 June 2023, a landmark due diligence regulation entered into force that prohibits the import into, trading within or export of certain products from the EU market unless it can be proven they are “deforestation-free”. Companies could face fines of up to 4% of their turnover in the EU for non-compliance with the regulation, in addition to other sanctions such as confiscation of products. 

The EUDR will have a wide reach primarily in the consumer industry, affecting any company that sells or exports the relevant commodities and derived products to or from the EU market. Its principal burden will be on companies that are making relevant products available on the market for the first time, or exporting them. Companies should consider now the impact of the EUDR on their supply chain due diligence to prepare for the new obligations that apply from 30 December 2024.

The EUDR is a pivotal piece of EU legislation in the fight against deforestation. It places stringent obligations on businesses, including due diligence and risk assessments. Non-compliance may result in fines, product confiscation, and temporary exclusions from procurement processes. Companies must promptly establish due diligence systems and assess their operations to meet the regulation's requirements.
 

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The document provides additional information regarding the regulation, its associated due diligence requirements, penalties, and the subsequent steps that companies to which the regulation applies must take.