Deforestation is no longer just an environmental issue – it is becoming a business compliance obligation
We cannot exist without forests: in addition to providing a habitat for numerous species and acting as carbon sinks, forests also provide a vital source of income for approximately one quarter of the world’s population.
The scale of forest loss worldwide has reached alarming levels: according to the Food and Agriculture Organization of the United Nations (FAO), 420 million hectares of forest were lost to deforestation between 1990 and 2020, an area equivalent to the size of the EU.
Deforestation and forest degradation affect the EU’s environmental objectives, including efforts to combat climate change and biodiversity loss, but they also have implications for human rights, peace and security. The EU is therefore committed to tackling global forest loss. A key objective is to improve the health of existing forests and significantly increase sustainable, biodiverse forest areas worldwide.
To achieve this, the EU adopted the Deforestation Regulation (EUDR – Regulation (EU) 2023/1115), which aims to minimise deforestation and forest degradation associated with agricultural commodities imported into the European Union.
The products covered by the Regulation are listed in Annex I. These include products that contain cattle, cocoa, coffee, oil palm, rubber, soya or wood, or that have been fed with or made using these commodities.
Every operator or trader who places the commodities specified in the Regulation on the EU market or exports them must demonstrate that the products do not originate from land that has recently been subject to deforestation or contributed to forest degradation. Otherwise, they may not be released for free circulation in the EU, exported from the EU, or traded within the EU.
Medium-sized and large companies must comply with the legal requirements from 30 December 2026, while micro and small enterprises must comply from 30 June 2027. However, for certain newly included product categories, the compliance obligations will only apply from 30 December 2027.
More information: European Commission
