What is the EUDR?

The EUDR timeline and delay debate 

The EU Deforestation Regulation (EUDR) entered into force in June 2023, with the main compliance deadline passing on 30 December 2024. As of now, companies placing relevant products on the EU market must provide evidence of deforestation-free sourcing, geolocation data, and a due diligence statement submitted via the EU’s central information system.

However, more than half a year after the deadline, implementation remains uneven — and debate around feasibility, fairness, and enforcement continues to dominate sustainability and trade discussions across the EU and beyond.

Key concerns and post-deadline realities:

• Compliance challenges persist, especially among smallholders and producers in the Global South who still face difficulties mapping supply chains to the required plot-level precision.
• The EU’s due diligence portal, intended to standardise data submissions, has experienced delays and technical limitations, complicating rollout for businesses across sectors.
• Industry readiness is mixed. While larger corporations have mobilised compliance teams and third-party verifiers, many SMEs and downstream actors are still navigating requirements.
• Trade tensions remain, with producer countries raising concerns over market access, unequal burden-sharing, and potential unintended consequences on livelihoods and local economies.

Despite calls for a grace period or phased approach, formal enforcement began in early 2025. While regulators are showing some flexibility in early audits, businesses are being expected to demonstrate clear due diligence processes, progress on traceability, and credible efforts to comply.

Sectors most affected by the EUDR

Here are the industries most impacted by the EUDR. 

Food & Beverage

This sector faces some of the highest exposure under the EUDR due to its reliance on cocoa, coffee, soy, and palm oil. From chocolate and snacks to oils and plant-based products, food companies must now trace raw ingredients to the plot level and demonstrate they are deforestation-free — a challenge in multi-origin, multi-tier supply chains.

Agribusiness & Animal Feed

Livestock operations and feed producers are particularly impacted, as soy and palm oil are widely used in animal nutrition. The EUDR requires these operators to ensure that the crops used in their supply chains were grown legally and without deforestation, which adds complexity to feed sourcing and supplier relationships.

Forestry, Paper & Packaging

Companies dealing in timber, wood pulp, paper, and packaging must now provide geolocation data for sourcing land and evidence of legality. This affects not only primary producers but also retailers and brands using wood-based materials in packaging, books, furniture, and construction products.

Apparel & Footwear

Leather and rubber, both in scope under the EUDR, are commonly used in clothing, shoes, and accessories. Brands must ensure that cattle and rubber trees linked to their products were not raised or harvested on recently deforested land, adding new due diligence obligations for global fashion and footwear supply chains.

Automotive

Vehicle manufacturers and suppliers rely heavily on natural rubber for tyres, seals, belts, and interiors. The EUDR now requires traceability of rubber sources back to the plantation level, creating due diligence demands across a complex, often globalised, parts supply chain.

Construction & Infrastructure

Timber and rubber are common in construction materials and components. From flooring and formwork to expansion joints, developers and contractors must now ensure their procurement practices align with EUDR requirements, including documentation on land origin and legality.

Cosmetics & Personal Care

This sector is affected due to its extensive use of palm oil derivatives and soy-based ingredients in formulations. Brands must trace these inputs back to deforestation-free sources, even when they appear deep within chemical or fragrance supply chains — often a significant transparency challenge.

Practical steps for EUDR compliance 

For companies navigating the EU Deforestation Regulation, the path to EUDR compliance begins with clear, structured action. The following steps outline how to embed EUDR requirements into everyday operations.

Step 1 – Map your supply chain

Start by identifying whether your business handles any of the seven EUDR commodities: cattle, cocoa, coffee, palm oil, soy, rubber, or wood. These could appear directly or as ingredients in food, packaging, furniture, or textiles. You’ll need to trace each relevant product back to the plot of land where it was produced. This means collecting geolocation data and verifying that no deforestation occurred after 31 December 2020.

Step 2 – Conduct risk assessments

The EUDR requires businesses to assess the risk of deforestation and illegality in their sourcing. This includes evaluating the country of origin, local laws, and the reliability of your suppliers. Use tools like Global Forest Watch or Trase to help assess land use and deforestation history. Document everything — your risk assessment is a legal obligation, not a formality.

Step 3 – Strengthen supplier engagement

Suppliers may not fully understand what the EUDR asks of them. Work closely with them to explain expectations and clarify what data they need to provide. Update contracts and sourcing policies to reflect traceability requirements. Where possible, partner with suppliers who hold certifications or audit-ready records.

Step 4 – Implement a due diligence system

You’ll need a structured process to manage geolocation data, risk checks, and documentation. This is what enables you to submit due diligence statements via the EU portal. Your system should be consistent, auditable, and aligned with your procurement workflows. Think of it as a compliance backbone — you’ll rely on it during inspections.

Step 5 – Use technology to support traceability

Digital tools can make compliance much easier. Look for systems that offer mapping, satellite tracking, or integration with your supply chain. Blockchain or QR-based tools can also help with batch-level traceability. Many platforms are now EUDR-aligned or building updates to support future enforcement.

Step 6 – Prepare for audits and enforcement

From early 2025, EU member states began conducting risk-based checks. This includes requests for sourcing evidence, plot-level maps, and verification of legality. Be ready to show you’ve acted in good faith with proper documentation and controls. Having clean records, even in complex supply chains, makes a real difference.

Step 7 – Stay updated as rules evolve

The EUDR is in effect, but technical guidance is still unfolding. Keep an eye on updates from the European Commission and national authorities. Join relevant industry groups or supply chain forums. Shared learnings can help reduce compliance costs and improve clarity.

Conclusion

As consumer and regulatory scrutiny intensifies, the ability to trace, verify, and stand behind sustainability claims is becoming a defining factor in business credibility and competitiveness.

While challenges remain, from traceability gaps to technical bottlenecks, forward-thinking companies are already investing in the systems, skills, and partnerships needed to turn compliance into long-term capability.

Looking ahead, the EUDR is just one of many emerging policies reshaping the corporate landscape. Staying ahead will require more than reactive compliance; it demands embedded knowledge and regulatory fluency.

Need support aligning your strategy with evolving demands? Our online corporate sustainability training equips teams with the insight and skills to meet regulations, drive efficiency, and boost competitive edge.

Update: In response to earlier recommendations for a one-year delay due to technical challenges with its data systems, the European Commission has now confirmed that the EUDR will proceed as planned — taking effect on 30 December 2025 for large companies and 30 December 2026 for small and micro-enterprises. While the full delay was rejected, a six-month grace period has been introduced, during which large companies found non-compliant will not face fines. The Commission has also simplified compliance by limiting due diligence obligations to the first importer placing a product on the EU market.