The European Commission has proposed amendments that intend to streamline compliance with the European Union Deforestation Regulations (EUDR) by reducing the burden of reporting and administrative requirements on businesses that import products that pose a risk to forests.

The revised measures prepared for the implementation of the EUDR in 2026 are intended to provide companies that are affected by these regulations with lower costs for complying with the regulations on an annual basis as compared to what they would otherwise incur under the previous regime.

Under the EUDR, companies that sell certain commodities in the European Union to demonstrate that their products do not come from any land that has been recently deforested or that they do not contribute to the degradation of forests. Commodities subject to the EUDR include cattle, cocoa, coffee, soybeans, palm oil, rubber, and wood and their associated products.

For downstream suppliers and traders, the revised measures will reduce their due diligence obligations, and micro and small enterprises located in low-risk countries will be allowed to use simplified reporting mechanisms. Additionally, the European Commission will provide new digital tools to promote traceability in supply chains as well as to facilitate the completion of various risk assessments.

Changes to the regulation were made in response to concerns raised by exporters and industries regarding compliance costs, data collection requirements, and the overall complexity of implementing the regulation. Exporters of agricultural and forestry products to the EU stated that small businesses have difficulties meeting traceability and geolocation requirements along the supply chain.

The European Commission confirmed that the updated measures do not change the regulation's objective of prohibiting any product connected to deforestation from entering the EU marketplace, stating that the updated framework was designed to give companies, Member States, and exporting countries greater transparency before enforcement.

The list of products covered by the regulation has also been modified as part of the changes; specifically, leather, hide, and skin were removed from the regulation as a result of discussions with industry stakeholders.

The regulation is scheduled to take effect from December 30, 2026, for large and medium-sized companies, while smaller businesses are expected to receive additional time before full compliance requirements apply.

Further monitoring by research organizations and environmental NGOs is taking place regarding the execution of this initiative, since traceability schemes play an important role in the reduction of deforestation caused by international commerce. Additionally, companies need to prepare themselves for monitoring and reporting related to entry into the European Union market.