EU Eases Deforestation Regulation, Offering Relief and Extended Deadlines to Businesses

The European Union has eased its controversial deforestation regulation (EUDR) following significant industry pressure, paving the way for more manageable compliance for businesses across the EU. The revised regulation extends implementation deadlines to December 30, 2026, for large and medium-sized companies, and to June 30, 2027, for small and micro enterprises, giving businesses additional time to adapt their processes and IT systems.

A key change introduced is the 'Once-Only' principle, under which the primary compliance responsibility falls on the first importer of affected products like soy, coffee, or timber. This shift relieves downstream merchants and processors from submitting separate due diligence declarations, substantially reducing bureaucratic burdens for thousands of companies. Moreover, small producers from low-risk countries now only need to submit a simplified due diligence declaration, and certain products, including books and newspapers, are exempted entirely from the regulation.

Germany played a leading role in negotiating these reforms and successfully garnered support among EU member states. Nevertheless, industry associations remain concerned about strict sanctions that could result in product recalls or destruction even when companies comply with the rules. Discussions on further easing the regulation, especially regarding sanctions and country risk classifications impacting due diligence requirements, are ongoing. The European Commission plans to report on these potential adjustments by April 30, 2026.

The regulatory changes represent a significant win for German businesses and the wider industry, balancing global forest protection goals with practical business considerations. Companies now have clearer, more flexible compliance paths, with decreased bureaucratic demands that protect both trade and the environment. However, the conversation between policymakers and stakeholders continues as they seek an optimal framework that supports sustainable sourcing without unduly burdening companies.

According to a recent report, this revision is largely attributed to a German initiative that influenced EU-wide support, marking a notable achievement in shaping environmental regulation in favor of both sustainability and business viability.