EU Commission eases Deforestation Regulation reporting processes

The European Commission has amended reporting obligations under the EU Deforestation Regulation (EUDR) to reduce administrative costs for companies.

The implementation of the law – which mandates EU importers of forest products to ensure their goods do not come from deforested areas – was delayed by 12 months last year, with companies now expected to comply on December 31, 2025. 

Last week, the Commission introduced a number of “simplification measures” to the EU Deforestation Regulation – as part of general efforts to reduce sustainability reporting burdens and costs for companies.

Concretely, companies will now be allowed to submit just one due diligence statement per year, instead of one for every shipment or batch imported into the EU. They can also have an authorised representative submit due diligence statements on behalf of members of company groups, and large companies are allowed to reuse existing due diligence statements when goods that have previously entered the EU market are reimported.

‘Ascertaining due diligence’ up the supply chain: Process simplified

In addition, the Commission has clarified what “ascertaining” that due diligence has been carried out means, especially for downstream companies. According to its updated EUDR guidance, “ascertaining that due diligence was properly carried out may not necessarily imply having to systematically check every single due diligence statement submitted upstream”. 

“For example, the downstream non-SME operator could verify that upstream operators have an operational and up-to-date due diligence system in place, including adequate and proportionate policies, controls, and procedures to mitigate and manage effectively the risks of non-compliance of relevant products, to ensure that due diligence is properly and regularly exercised,” the guidance adds.

This means that downstream companies now benefit from simplified obligations, and must only collect the reference numbers of their suppliers’ due diligence statements to use them in their own due diligence statements. 

Delivering deforestation goals in ‘the least burdensome way’

Commenting on the amendments, Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy, said: “We are committed to implementing EU rules on deforestation in a spirit of close partnership, transparency, and open dialogue. Our aim is to reduce administrative burden for companies while preserving the goals of the regulation. We will continue to work very closely with all stakeholders, to ensure that our rules deliver on reducing global deforestation and forest degradation in the least burdensome way for companies.”

With these amendments to EUDR reporting processes, the EU Commission is targeting a 30% reduction in reporting burdens and costs for European companies. 

The Commission is also finalising a country benchmarking system, which would lighten the reporting burden for imports from countries with a low deforestation risk. The benchmarking system is expected to be adopted no later than June 30, 2025, following consultations with Member States.