Unpacking the European Union Deforestation Regulation: An overview of the requirements for operators and small and medium-sized enterprises

This document explains the requirements of the European Union Deforestation Regulation (EUDR) that entered into force on June 29, 2023, with mandatory compliance from December 2025 for large companies and June 2026 for SMEs. The regulation covers coffee, cocoa, rubber, cattle, palm oil, wood, soy and their derivatives, requiring them to be deforestation-free and produced in accordance with the legislation of the country of origin. The document details due diligence obligations, risk assessment, traceability through geolocation and the role of voluntary sustainability standards as support tools. Sanctions include fines of up to 4% of annual EU turnover, product confiscation and temporary exclusion from the European market.