The European Commission says it wants to make sure its IT system is “fully operational” to address the EU’s contribution to the global challenge of deforestation as part of its new deforestation regulation (EUDR).
At the same time, it says the proposal will simplify reporting obligations, notably for micro and small primary operators from low-risk countries worldwide, while maintaining a robust tracking mechanism.
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The EU deforestation law will enter into application on 30 December 2026 for micro- and small enterprises.
However, large and medium companies will see the legislation start on 30 December 2025, but to ensure a gradual phase-in of the rules, the EU Commission says larger companies such as those within the fashion industry “will benefit from a grace period of six months for checks and enforcement”.
EU’s simplification proposal for EU deforestation law
The EUDR is described as “a key initiative to fight deforestation,” but it has taken into account feedback from stakeholders by offering a proposal that includes targeted simplifications to reduce obligations for:
- Operators and traders that commercialise the relevant EUDR products once they have been placed on the EU market. These can be, for example, retailers or large EU manufacturing companies. These companies are in the downstream part of the relevant value chains. The upstream operator will continue to exercise due diligence.
- Micro and small primary operators from low-risk countries worldwide who sell their goods directly on the European market. These cover close to 100% of farmers and foresters in the EU.
To allow for a more efficient use of the IT system, the Commission proposes that downstream operators and traders should no longer be obliged to submit due diligence statements.
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By GlobalDataThis streamlining means only one submission in the EUDR IT system at the entry point in the market will be required for the entire supply chain. The reporting obligations and the responsibility would be focused on the operators placing first the products on the market.
With the simplification, micro and small primary operators would submit a one-off declaration in the EUDR IT system. When the information is already available, for instance in a Member State database, the operators do not have to take any action in the IT System themselves. This simplification replaces the previous need for regular submissions of due diligence statements.
The Commission explains it has been deploying its IT system in close cooperation with stakeholders, as foreseen in the legislation, since its launch in December 2024.
It adds the new projections on the number of expected operations and interactions between economic operators and the IT system have led to a substantial reassessment of the projected load on the IT system – being much higher than anticipated. The system must be capable of handling all due diligence statements for products covered by the law and submitted by all operators.
The EU Commission believes its new entry into application dates, combined with the simplification of obligations for supply chain actors, will ensure the IT system can sustain the level of expected loads.
It is also working on contingency plans, so that economic operators can comply with their obligations, should this legal proposal not be adopted in time by the co-legislators, in which case the EUDR will enter into application on 30 December 2025.
What are the next steps for the EU deforestation law?
The European Parliament and the Council will discuss the Commission’s proposal and will need to formally adopt the targeted amendment of the EU Deforestation Regulation before it can come into effect.
As a result, the Commission is calling on the European Parliament and the Council to swiftly adopt the proposal for an extended implementation period by the end of 2025.
What is the EU deforestation regulation (EUDR)?
The EU Deforestation Regulation aims to ensure that a set of key goods placed on the EU market no longer contribute to deforestation and forest degradation in the EU and elsewhere in the world.
The EU explains that deforestation and forest degradation are important drivers of climate change and biodiversity loss – the two key environmental challenges of our time.
Since the entry into force of the EUDR in June 2023, the EU Commission says it has consistently worked with stakeholders on how to facilitate a simple, fair and cost-efficient implementation of the EUDR.
