In May 2026, the European Commission published a simplification package
regarding the European Union Deforestation Regulation (EUDR). While this
package does not alter the fundamental principles of the regulation, it clarifies
several practical aspects and reduces the administrative burden for companies,
particularly those operating downstream or small producers.
The EUDR requires companies to ensure that certain products sold in the EU or exported from the EU are not linked to deforestation or forest degradation. It concerns seven raw materials: cocoa, coffee, palm oil, soy, timber, rubber, and their derived products. These companies must prove that these products do not originate from deforested or degraded areas and provide rigorous traceability of their supply chain.
Good news : no major changes
One of the key announcements from the simplification package is that there is no fundamental change in the core concepts of the regulation. The Commission has updated the FAQ on the EUDR, but this is more of a clarification than a radical change. Companies will continue to comply with the existing obligations, including traceability and deadlines for compliance.
The deadlines for compliance remain unchanged: large and medium-sized companies, as well as small and micro-companies in the timber sector, must comply by December 30, 2026. Small and micro-companies in other sectors will have until June 30, 2027.
Key clarification in the simplification package
One of the major adjustments concerns the role of downstream operators. Contrary to some expectations, no substantial changes are made to their responsibilities. Downstream operators must still collect and keep the contact details of their suppliers and customers for five years. However, only the first downstream entity, the one that buys directly from an upstream operator, must record the DDS (Due Diligence System) reference number when it is passed on. There is no obligation to transmit this number throughout the value chain.
The simplified package also introduces an eased regime for micro and small primary operators in low-risk countries, such as farmers or foresters who market products they have grown, harvested, or raised themselves. These producers may submit a simplified single declaration rather than repeated declarations. Moreover, when required data already exists in national databases, it can be reused to further ease the administrative burden.
Conclusion
Despite the simplification, the EUDR remains associated with significant benefits, estimated at around EUR 7 billion per year, with 208,000 hectares of deforestation avoided and 49 million tons of emissions avoided.
The EUDR remains an ambitious regulation, but its implementation is becoming more pragmatic and better targeted.
It is important to note that these adjustments are part of a draft delegated act that is not yet final. The European Parliament and the Council have one month to review it before it becomes effective.
If you have any further questions regarding the concrete implications for your company, feel free to contact ESGlogic, a key player in supporting EUDR compliance.
By Estelle Methens Head of ESG Policy at ESGlogic
Read also : Energy Communities: the win-win solution for electricity