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Updated: August 2025
The implementation of the EUDR was long surrounded by uncertainty. As concerns were raised by major exporters like Brazil and Indonesia, and as the complexity of compliance became increasingly clear, many questioned whether the deadline would be postponed. In the end, the EU granted a 12-month delay until the end of 2025, giving companies more time to adapt without undermining the regulation’s core objective: to curb global deforestation.
So, what do companies need to know and act on before the new deadlines take effect?
Psst.. for a detailed breakdown of the EUDR, visit our blog: The EU Deforestation Regulation (EUDR): what you need to know
Why is the EUDR important?
Deforestation is a leading cause of climate change and biodiversity loss, and the EU contributes to this by consuming products linked to deforestation. The EUDR aims to make sure that the EU:
- Minimizes its global contribution to deforestation and forest degradation, helping to curb worldwide deforestation.
- Reduces its role in greenhouse gas emissions and supports efforts to protect global biodiversity.
The updated EUDR deadlines
On December 3, 2024, the Council of the European Union and the European Parliament reached a provisional agreement to postpone the implementation of the EUDR by 12 months.
The updated deadlines are:
- Large companies: December 30, 2025
- Micro and small enterprises: June 30, 2026
This delay gives EU member states and businesses more time to prepare for alignment and compliance. However, the regulation’s purpose remains unchanged: to reduce the EU’s contribution to global deforestation by ensuring that regulated commodities and their derivatives are deforestation-free when placed on the EU market.
EUDR compliance requirements: Key obligations for operators and traders
To comply with the EUDR, operators and traders must trace the geolocation of the relevant commodities, conduct risk assessments, and verify that production complies with the laws of the country of origin. This applies to the regulated commodities, as well as their derivatives.
The table below outlines the specific obligations depending on company size and role in the supply chain:
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Note: The provisional agreement reached on December 3 does not alter the substance of the regulation. The core requirements and obligations under the EUDR remain unchanged - only the timeline for implementation was adjusted.
The EU’s tools for EUDR compliance
The country benchmarking system is now available, following the adoption of an Implementing Act by the European Commission. It ranks countries according to their risk level of producing commodities that are not deforestation-free, as defined under the EUDR. You can view the full country classification list here.
The TRACES platform is now in place and serves as the EU’s registry of due diligence statements. It enables operators, traders, and their representatives to generate and submit due diligence statements electronically, demonstrating that their products comply with the EUDR. You can access the TRACES platform here.
What are the consequences of non-compliance with EUDR?
Non-compliance with the EUDR can result in serious penalties for operators and traders, including both financial and operational sanctions. Here’s what could happen if a company fails to meet the regulations’ requirements:
- Fines: Companies may face fines amounting to at least 4% of their total annual EU-wide turnover.
- Confiscation of products: The relevant products that do not comply with the EUDR can be confiscated by authorities.
- Confiscation of revenues: Any revenues earned from transactions involving non-compliant products may also be seized.
- Exclusion from public contracts: Companies could be temporarily excluded (for up to 12 months) from public procurement processes, including access to public funding, grants, and tenders.
- Market restrictions: Authorities may impose a temporary ban on placing or exporting the relevant products on the EU market.
- Restriction on simplified due diligence: Companies found to have committed serious or repeated violations may lose the right to apply simplified due diligence procedures, as outlined in Article 13 of the regulation (Source: Article 25, EUDR).
Non-compliance can have severe financial and reputational consequences, making proactive alignment with the regulation critical.
The first step to EUDR compliance: Know your supply chain
The EUDR introduces a wide range of new requirements, but at its core, the regulation has a clear purpose: to reduce global deforestation by addressing high-risk supply chains. It also seeks to lower EU-related greenhouse gas emissions and promote long-term sustainable production, benefiting both people and the planet.
To get started, every company should begin with one step:
Know your supply chain: Understand which suppliers are affected and where your products are grown, sourced, and produced - and assess how familiar they are with the regulation and how prepared they are to meet its requirements.
While the commodities covered by the EUDR vary in characteristics and supply chain complexity, taking the first step - understanding who your suppliers are, what role they play, and how prepared they are - is essential for both compliance and long-term sustainability.
Get started with Worldfavor’s EUDR readiness check
To help companies take that first step, Worldfavor has launched an automated EUDR readiness check - a fast, scalable way to screen your suppliers and identify potential risks in your supply chain.
With the assessment, you can:
- Identify relevant suppliers who produce, import, export, or trade any of the seven EUDR-regulated commodities or the 71 derived products.
- Assess supplier awareness of the EUDR and its core requirements.
- Evaluate their preparedness to meet EUDR obligations.
- Receive automated insights on supplier readiness and potential risk areas.
Note: Worldfavor’s EUDR readiness check acts as an initial screening tool. It does not collect geolocation data, ensure compliance, or create or submit due diligence statements.
Talk to a Worldfavor expert today to learn how you can get started!
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