EU Commission Unveils Major Overhaul of Deforestation Rules, Slashing Compliance Costs by 75%
May 6 - 2026
Coffee Geography Magazine
The European Commission today released a sweeping simplification package for the revised EU Deforestation Regulation (EUDR), announcing measures expected to reduce annual compliance costs for companies by approximately 75% while maintaining the law's core environmental objectives.
The package, which includes a formal report to the European Parliament and Council, updated guidance documents, and a draft delegated act on product scope, represents the Commission's latest effort to address stakeholder concerns about administrative burden ahead of the regulation's entry into force.
"We introduce simplification measures which together with previous simplification efforts will substantially reduce administrative burden," said Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy. "Our efforts are fully focused on facilitating implementation in the most efficient way. We all now need to work towards a successful entry into application of the law by the end of 2026 and keep in mind its important objective of reducing deforestation globally."
Jessika Roswall - Commissioner for Environment, Water Resilience and a Competitive Circular Economy
The revised EUDR, adopted by the European Parliament and Council in December 2025, requires any operator or trader placing seven key commodities on the EU market – coffee, cattle, wood, cocoa, soy, palm oil, rubber, and certain derived products – to prove they do not originate from recently deforested land or contribute to forest degradation.
The regulation will apply from 30 December 2026 for large and medium companies, as well as timber sector micro and small enterprises. Other micro and small businesses will have until 30 June 2027 to comply.
Today's package introduces several practical improvements. These include updated guidance documents addressing frequently raised stakeholder questions, with clarifications on downstream supply chain obligations and e-commerce geolocation modalities. The Commission has also introduced simplified declaration forms for micro and small primary operators within the Information System, alongside a voluntary grouping feature for businesses that responds directly to private sector requests. Additionally, enhanced automated application interfaces and a contingency plan for system unavailability have been rolled out.
The Commission further confirmed that it is working with Member States to integrate national database information directly into the EUDR's Information System, a step expected to further reduce burdens on smaller operators.
A draft delegated act proposes adding certain downstream products to the regulation's scope, including soluble coffee and specific palm oil derivatives. However, the Commission has also proposed several exclusions, removing leather, retreaded tyres, product samples, certain packing materials, used and second-hand products, and waste from the regulation's requirements. The draft delegated act is open for public feedback until 1 June 2026.
According to the Commission's report, the EUDR is already driving structural changes in global supply chains, with increased investment in traceability systems and greater transparency across production networks.
"The measures introduced today build on extensive discussions with Member States to ensure harmonized enforcement across the EU," the Commission noted, adding that updated supply chain infographics will provide user-friendly practical examples for businesses navigating the new requirements.
The Commission emphasized its continued focus on facilitating implementation and ensuring a successful entry into application of the law by 30 December 2026.