October 25, 2025
The European Commission has announced major proposed adjustments to the EU Deforestation Regulation (EUDR) — the landmark law designed to ensure that goods sold in or exported from the EU no longer contribute to global deforestation. The new changes would lighten compliance burdens for retailers, manufacturers, and smaller operators, even as the Commission reaffirms that the law will still enter into force by the end of 2025.
Key Changes: Narrower Scope and Simplified Reporting
The updated proposal includes several notable revisions:
Threshold shift: Only the companies that first place deforestation-linked commodities on the EU market will need to file full due diligence statements. Downstream players, such as retailers and chocolate manufacturers, will no longer be required to submit additional declarations.
Simplified requirements for small operators: Micro and small enterprises in low-risk countries will only need to submit a one-time declaration rather than regular due diligence filings. Nearly all EU farmers and foresters will fall under this category.
Grace period for large firms: While the regulation still takes effect at the end of this year, large operators will receive a six-month enforcement grace period, and small enterprises will not be covered until the end of 2026.
Ongoing IT challenges: The Commission acknowledged continued concerns about the EUDR’s digital traceability platform, designed to track goods back to the exact plot of land where they were produced. Ensuring the system’s readiness is one driver behind the proposed simplifications.
A Balancing Act Between Burden and Integrity
The EUDR, first introduced in 2021, covers key commodities such as palm oil, beef, timber, cocoa, coffee, rubber, and soy, along with products derived from them like leather, furniture, and chocolate. Companies must prove that these products were not sourced from land deforested after 2020 and comply with local environmental laws.
However, the Commission’s new plan appears to prioritize administrative feasibility and small business relief over the strict, supply-chain-wide accountability originally envisioned. Executive Vice-President Teresa Ribera framed the approach as a practical compromise, saying it would “streamline the tracking process for micro and small producers” and “ensure a seamless implementation.”
Pushback From Environmental Advocates
Environmental groups have reacted sharply. The WWF called the revision “a shameful surrender to political pressure,” warning that exempting smaller players could “significantly increase risks of deforestation and illegality in supply chains.”
Critics argue that the rollback could penalize companies that have already invested heavily in deforestation-free sourcing and weaken Europe’s credibility on global forest protection and biodiversity commitments.
What Companies Should Do Now
Even with reduced reporting obligations for some, the core compliance requirement—traceability to the point of origin—remains intact. Companies in sectors such as food, agriculture, retail, and consumer goods should:
Confirm whether they remain an “operator” under the new proposal (i.e., placing relevant goods on the EU market).
Prepare supply-chain data systems now, given the six-month grace period for enforcement.
Monitor the legislative timeline, as both Parliament and Council still need to formally approve the Commission’s proposal.
Stay alert to country risk classifications, which will determine which operators qualify for simplified reporting.
The Road Ahead
The Commission is urging co-legislators to adopt the revised proposal swiftly to avoid further delays. However, if the changes are not ratified in time, contingency plans may be required.
For sustainability leaders, the message is mixed: the EUDR will still arrive soon—but perhaps with less bite than originally intended. The coming months will reveal whether this recalibration strikes the right balance between regulatory realism and environmental ambition.
