EU Deforestation Regulation (EUDR) - what you need to know now: From 2024, anyone importing raw materials such as soya, palm oil or wood will have to prove that these do not originate from deforested areas. Find out here which deadlines apply and what companies can do to be well prepared.

Who is affected by the EUDR? 

The EU Deforestation Regulation (EUDR) came into force on 30 December 2024 and obliges companies to ensure deforestation-free supply chains. The aim is to prevent the import and export of products that are associated with deforestation or forest degradation. Who is affected and what are the obligations for companies in Germany and Europe?

The regulation applies to companies that import certain raw materials or products made from these into the EU or export them from the EU. These include:
  • Soya, palm oil, wood, beef, cocoa, coffee, rubber 
  • Products such as leather goods, furniture, chocolate, paper

Deadlines for the implementation

The EUDR has been in force since 30 December 2024, but not all companies are affected immediately and some are given a transitional period for implementation:
  • Large companies (>250 employees or >EUR 50 million turnover) must fully implement the regulations from 30 December 2024.
  • SMEs (small and medium-sized enterprises) can complete their compliance measures by 30 June 2025.

Key obligations for companies

To prove that their supply chains are deforestation-free, companies must implement the following measures:

  1. Geolocalisation and traceability
    • Geocoordinates as proof of origin for all relevant raw materials
    • Complete traceability back to the agricultural area or plantation
  2. Risk assessment and risk mitigation
    • Analysis of deforestation risk within the supply chain
    • Measures such as audits, satellite monitoring, certificates 
  3. Due diligence declaration
    • Companies must submit a formal declaration confirming their compliance with the EUDR 
    • Without this declaration, import or export is not permitted in the EU

Consequences of violations

Companies that violate the EUDR can expect severe penalties: 
  • Fines of at least 4% of annual turnover
  • Confiscation of non-compliant products
  • Exclusion from public tenders

How companies can be prepared 

In order to meet the new requirements, companies should act proactively:
  • Increase transparency in the supply chain
  • Use technologies such as satellite images and blockchain
  • Train suppliers and implement compliance measures

Conclusion

The EUDR presents companies with new challenges, but also opens up opportunities. Those who act early and implement due diligence obligations minimise risks and gain a competitive advantage. Now is the right time to set up a sustainable supply chain.

Our offer: Would you like to know whether your company is covered by the EU Deforestation Regulation or do you need support with its implementation? Contact us - we will help you to fulfil the new requirements efficiently.

 

Sources and further information: 

 

Text: Olga Schmidt

 

Dr Denise Ott

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Dr Denise Ott

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