EU Deforestation Regulation

Companies trading in the relevant commodities have to conduct due diligence on their supply chain to ensure that their goods are not the result of post December 2020 deforestation, forest degradation, or local social and environmental law breaches.

As part of the EU’s Green Deal, an agreement was reached by the European Parliament, for the deforestation-free regulation in June 2023. The regulation comes into force on the 30th December 2024.

Companies importing the relevant commodities to the EU, or exporting them from the EU, must carry out due diligence. Competent authorities from the EU Member states will be responsible for carrying out checks on the relevant commodities. Non-compliance can result in several corrective measures, like fines, recalls or no market access.