Deforestation and forest degradation are among the greatest environmental policy challenges of our time. The loss of forest cover has profound impacts not only on the climate but also on biodiversity and ecosystem stability. Forests play an irreplaceable role in the carbon cycle, temperature regulation, soil quality, and water management. Their destruction therefore disrupts the entire system on which agriculture, water supply, and the survival of many plant and animal species depend.
The European Union has decided to address this issue by adopting legislation designed to restrict access to the EU market for products linked to deforestation. Regulation (EU) 2023/1115 of the European Parliament and of the Council on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation (hereinafter the “EUDR”) aims to ensure that the listed commodities originate only from areas where no deforestation occurred after 2020. With this measure, the EU seeks to extend responsibility for forest protection to importers, producers, and traders who place these products on the EU market. In this article, we would like to recall the key aspects of the EUDR and provide an update on its implementation.
Direction of the EUDR
As outlined in our previous article “EUDR – The Deforestation Regulation”[1] from 17 October 2024,
the EUDR sets out requirements for companies that place on, supply to, or export from the EU market certain commodities (cocoa, cattle, coffee, palm oil, rubber, soy, and wood) or products containing these commodities. The extent of obligations varies depending on the size of the company and its position in the supply chain.
The EUDR was adopted on 23 May 2023 and entered into force on 29 June 2023. Its application was originally scheduled in two phases – from 30 December 2024 for large and medium-sized enterprises, and from 30 June 2025 for small enterprises. Following requests from Member States, entry into application has been postponed uniformly by 12 months.
Recent developments in 2025
As of October 2025, the EUDR remains one of the most discussed regulations in the field of ESG and compliance. In response, the European Commission published a proposal for partial amendments intended to reduce the administrative burden on companies[2]. However, this does not constitute a further postponement of the EUDR’s entry into force. Instead, the proposal introduces a six-month
“non-enforcement” period, meaning that while the EUDR will become applicable on 30 December 2025, competent authorities will not impose penalties for non-compliance until 30 June 2026. This transitional period is intended to allow companies to fine-tune their internal processes and adapt to the new electronic traceability system, which is essential for the EUDR’s practical operation.
Another relief concerns micro and small enterprises, which are to benefit from an additional one-year postponement until 30 December 2026 and will be permitted to submit a simplified one-time statement of commodity origin.
Overview of key changes
The Commission’s proposal from October 2025 maintains the principle of full traceability for relevant products but modifies how entities will handle the required information.
The obligation to conduct due diligence will now apply only to entities placing a relevant commodity or product on the EU market for the first time. In contrast, downstream operators, entities that further process or sell these products will no longer need to carry out their own due diligence. Their responsibility will be limited to passing on reference numbers and retaining necessary information in the system.
The term “operator” is being replaced with “entity”, which will cover any natural or legal person placing relevant products on the market or exporting them in the course of business, except downstream operators.
A new category of downstream operators is introduced, comprising any natural or legal persons who, in the course of their business activities, place on the market or export products made using relevant commodities, all of which are already covered by a due diligence or simplified statement.
In addition, a new category of “micro and small primary entities” is being created, comprising operators who cultivate, harvest, or rear commodities in low-deforestation-risk areas. These actors must register in the EU IT system and record declaration identifiers but will not be required to issue full due diligence statements.
Practical and legal implications of the proposed amendments
The proposed amendments represent several positive steps toward reducing administrative complexity, particularly through the harmonisation of information-sharing rules and the elimination of duplication in due diligence efforts across supply chains. Micro and small enterprises will be allowed to rely on national registries as information sources, provided these contain all required data – such as customs codes, product descriptions, and quantities.
On the other hand, the proposal does not amount to a genuine postponement of the EUDR’s applicability and does not relieve companies of their obligations to register in the EU IT system, collect reference numbers, and ensure their transmission. This may be especially challenging for processing industries, for instance, in meat production, where tracking the origin of raw materials is particularly complex.
Another concern is the legal uncertainty during the six-month “non-enforcement” period. Although medium and large enterprises will not be penalised during this time, their obligations will still apply. In the worst case, entities may still face liability under other legal frameworks, including Directive (EU) 2024/1203 on the protection of the environment through criminal law, which introduces criminal liability for violations of the EUDR as of 21 May 2026. This could lead to a paradoxical situation in which companies face criminal prosecution despite the temporary suspension of administrative sanctions.
Conclusion
EUDR undoubtedly represents one of the EU’s most ambitious environmental policy instruments. Its objective to help halt global deforestation is both legitimate and aligned with the EU’s climate commitments. However, the practical implementation at company level, particularly in Member States with low deforestation risk, remains highly complex.
The year 2026 will likely reveal whether a workable balance can be achieved between the ambition to protect forests and the feasibility of compliance obligations imposed on European businesses.
Despite the postponement, we strongly recommend that affected entities prepare for the upcoming application of the EUDR, closely monitor legislative developments, and establish robust due diligence systems.
If you have any questions about EUDR or related issues, please do not hesitate to contact us.
[1] https://www.peytonlegal.cz/en/eudr-deforestation-regulation/
[2] https://environment.ec.europa.eu/document/download/15e6d00c-28bc-48db-9b32-b485742d372b_en?filename=Proposal%20for%20a%20Regulation%20-%20EUDR.pdf
Mgr. Jakub Málek, managing partner – malek@plegal.cz
Mgr. Kateřina Musilová, junior lawyer – musilova@plegal.cz
Tereza Hrudková, legal assistant – hrudkova@plegal.cz
6. 11. 2025