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European Union Deforestation Regulation (EUDR): All you need to Know

An updated guide is available: EUDR in 2026: All You Need to Know About the EU Deforestation Regulation.

EUDR aims to prevent approximately 2,48,000 hectares of Deforestation annually by 2030.

European Union Deforestation Regulation (EUDR): All you need to Know

European Union released European Union Deforestation Regulation (EUDR) on 29th June 2023 which will come into effect on 30th December 2025.

What is a European Union Deforestation Regulation (EUDR)?

It is a regulation implemented by European Union to encourage consumption of deforestation-free products. It prohibits the import and export of products which is produced on a land which has undergone deforestation and forest degradation after 31st December 2020.

Purpose of EUDR:

  1. To minimize global deforestation and forest degradation.
  2. To reducing EU’s contribution to greenhouse gas emissions and global biodiversity loss.

Which commodities are included in EUDR?

Timber

Learn about European Union Deforestation Regulation (EUDR)

Soy

Learn about European Union Deforestation Regulation (EUDR)

Palm

Learn about European Union Deforestation Regulation (EUDR)

Cattle

Learn about European Union Deforestation Regulation (EUDR)Learn about European Union Deforestation Regulation (EUDR)

Rubber

Learn about European Union Deforestation Regulation (EUDR)

Cocoa
& Coffee

Significance of EUDR:

  1. It encourages the trading of deforestation-free products.
  2. It replaces earlier EU Timber Regulation (EUTR) which was only focused on Timber and its derivative products.
  3. It aims to minimize EU’s contribution to greenhouse gas emissions linked to tree cover loss.
  4. It helps to protect biodiversity.
  5. EU has designed a Due Diligence System to ensure traceability of commodities.
  6. EU has adapted country-wise benchmarking based on their level of risk of producing commodities that are not deforestation-free.

Applicability of EUDR:

  1. It applies to each batch of commodity which is imported/exported/traded in European Union.
  2. It is applicable to Large Operators & Traders  from 30th December 2025.
  3. It is applicable to SME Operators & Traders from 30th June 2026.

EUDR’s Due Diligence System (DDS):

The Mandatory Due Diligence System is developed to monitor the applicability of the EUDR. It requires a three-step process:

  1. Collection of Data: Documents and data are collected to confirm the products are deforestation-free. Following are the mandatory data requirements for the traceability of the product:
        a. Producer Country
        b. Quantity
        c. Coordinates of the plot of land
  2. Risk Assessment: Assessing the collected data to check their validity.
  3. Risk Mitigation: Take action to reduce any identified risks.

Penalties for Non-Compliance:

Non-Compliance of the EUDR attracts varied penalties which are punities and designed to remove any resultant economic advantage.

The indicated penalities include but are not limited to:

  1. Fines – up to 4% of the operators / traders total annual EU turnover
  2. Confiscation of Products
  3. Confiscation of Revenues
  4. Exclusion from Public Procurement
  5. Temporary Market Prohibition
  6. Prohibition from Using Simplified Due Diligence
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Country Benchmark:

  1. EU has classified the importing countries into three categories according to their level of risk of producing commodities.
         a. High risk
         b. Standard risk
         c. Low risk
  2. Low risk countries are expected to follow simplified due diligence obligations where risk assessment and mitigation are not mandatory.
  3. High and Standard risk countries are required to go under enhanced scrutiny.
  4. EU operators importing goods from India are required to submit a simplified due diligence as India is classified as a low-risk country.

Information system:

  1. Centralized Platform: It is an online platform which allows operator, trader and their representatives to register Due Diligence Statements (DDS). Operators can view and manage their Due Diligence Statements in a dashboard.
  2. Acceptance Server: Replica of this online platform is made available on the EUDR website to make stakeholders familiar with it.
  3. Geolocation: It uses open street map (OSM) to indicate exact origin of products and materials by drawing on OSM or by providing coordinates.
  4. Product Details: It is required to fill the product details such as Type of Product, HS code, Product description and Quantity.

GreenSutra supports commodity exporters with end to end EUDR compliance solutions covering due diligence statements, geolocation traceability and supplier documentation under Regulation (EU) 2023/1115.

Shravani Mestry
Shravani Mestry