Committee on Trade and Environment - Regulation on deforestation and forest degradation-fee supply chains - Communication from the European Union

REGULATION ON DEFORESTATION AND FOREST

DEGRADATION-FEE SUPPLY CHAINS

COMMUNICATION FROM THE EUROPEAN UNION

The following communication, dated 29 October 2025, is being circulated at the request of the delegation of the European Union.

 

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1._       The EU introduced in 2023 Regulation (EU) 2023/1115 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 and repealing Regulation (EU) No 995/2020 ("the Deforestation Regulation"). The Deforestation Regulation aims to limit EU's contribution to global deforestation, as one of the biggest consumer and producer market of the commodities that are known to contribute to forest degradation and deforestation the most. 

2._       In line with the EU's ongoing efforts to engage with Members on and to facilitate the transparent and inclusive development of the EU's environmental policy, the EU would like to inform Members that on 21 October 2025, the European Commission adopted a proposal (COM(2025)652) amending the Deforestation Regulation as regards certain obligations of operators and traders.

3._       The proposal includes targeted solutions to support companies, global stakeholders, third countries and Member States to ensure a smooth and more gradual implementation of the Deforestation Regulation. The proposal will simplify the reporting obligations while maintaining a robust tracking mechanism.

4._       Taking into account feedback from stakeholders in the context of the European Commission's simplification efforts throughout the year, the European Commission proposal introduces meaningful simplifications to reduce obligations for

(i)_           Operators and traders that commercialise the relevant European Union Deforestation Regulation (EUDR) products once they have been placed on the EU market. These can be, for example, retailers or large manufacturing companies. These companies are in the downstream part of the relevant value chains. The upstream operator, i.e. the first operator placing on the EU market a relevant product,  will continue to exercise due diligence,

(ii)_          Micro and small primary operators from low-risk countries who sell their goods directly on the European market.

5._       The Commission is also proposing transitional periods to guarantee a smooth transition and strengthen the IT system. Concretely this means that the EUDR will enter into application on 30 December 2026 for micro- and small enterprises. For large and medium companies, the date remains 30 December 2025 but to ensure a gradual phase-in of the rules, they will benefit from a grace period of six months for checks and enforcement.

6._       The proposal preserves the non-discriminatory character of the Regulation.

7._       The Deforestation Regulation is a key EU initiative to fight deforestation. The European Commission remains fully committed to pursuing its objective to address the EU's contribution to the global challenge of deforestation.

8._       The EU will continue to inform Members in a timely manner about any upcoming development regarding the implementation of the Deforestation Regulation. 

 

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