“Unpacking the European Union Deforestation Regulation”

An overview of the requirements for operators and small and medium-sized enterprises…

This explainer breaks down European Union Deforestation Regulation (EUDR) requirements, provides an overview of steps that small and medium-sized enterprises (SMEs) must take to ensure compliance, and highlights voluntary sustainability standards (VSSs) as a recognized tool to support compliance by the EU…

The EUDR seeks to reduce and address deforestation by requiring that specific commodities and products associated with deforestation are both deforestation-free and legally produced before being placed on or exported from the EU market. Compliance will be required starting December 2025 or June 2026, depending on the size of the operators or traders. Non-compliance may lead to fines, product seizures, or market bans.

SMEs are particularly affected: They make up 90% of EUDR-related importers, and 80% to 90% of forest-related businesses in developing countries are small and locally run, providing over half of the sector’s jobs.

This brief breaks down the EUDR’s obligations for operators and SMEs and outlines the role of VSSs in supporting compliance.