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2 min read
The European Union’s Deforestation Regulation (EUDR) ushers in a new era of sustainable trade by ensuring supply chains for key commodities are transparent, traceable, and deforestation-free.
What Is the EUDR and Why Does It Matter?
The EU deforestation law, known as the European Union’s Deforestation Regulation (EUDR), requires that commodities placed on or exported from the EU market must not come from land deforested after December 31, 2020. It targets deforestation to combat climate change, reduce greenhouse gases, and protect biodiversity. EUDR applies to all businesses, regardless of size or origin, with obligations tailored to company size – larger enterprises face full compliance requirements from the start, while small and micro-enterprises are granted lighter obligations and later deadlines.
Key Commodities Covered
- Cattle: beef, leather
- Cocoa: beans, powder, chocolate
- Coffee: beans, roasted, blends
- Palm Oil: palm oil and derivatives
- Rubber: natural rubber, tires
- Soya: beans, oil, meal
- Wood: logs, paper, furniture
The EUDR Information System: Interface and Processes
The EUDR Information System is the digital backbone of compliance. Operators and traders use this centralized online platform to submit and manage EUDR Due Diligence Statements (DDS) and related data.
How it works:
- User Registration: Businesses register and create profiles linked to their operator or trader status.
- DDS Submission: For each product batch, users submit a DDS detailing product descriptions, origin (including GPS coordinates), suppliers, and recipients. The system supports batch uploads to streamline submissions.
- Data Verification: The system cross-checks submitted information with risk databases and flags inconsistencies or missing data.
- Monitoring and Audits: Authorities access the platform to monitor compliance, request additional evidence, and initiate audits when needed.
- Notifications and Updates: Operators receive system alerts on DDS status, deadlines, or corrective actions.
This structured workflow helps ensure transparent, traceable supply chains and reduces the risk of non-compliance.
Key Compliance Dates
Category | Employees | Annual Turnover | Annual Balance Sheet Total | EUDR Compliance Deadline |
| Large Enterprise | ≥ 250 | > €50 million OR | > €43 million | 30 Dec 2025 |
| Medium Enterprise | < 250 | ≤ €50 million AND | ≤ €43 million | 30 Dec 2025 |
| Small Enterprise | < 50 | ≤ €10 million AND | ≤ €10 million | 30 Jun 2026 |
| Micro Enterprise | < 10 | ≤ €2 million AND | ≤ €2 million | 30 Jun 2026 |
What data is required in the EUDR Information System? (Retained for Minimum 5 Years)
- Product details (including scientific names for wood species)
- Net weight or units
- Country/region of origin and precise GPS coordinates
- Supplier and recipient contact information
- Evidence of legality and deforestation-free sourcing
Country/Region Risk Classification
Risk Level | Characteristics |
| High | Most stringent due diligence, higher cost, delays |
| Standard | Default risk level if unspecified |
| Low | Streamlined checks; audit rates as low as 1% |
Accountability and Penalties
Category | Responsibilities |
| Operators & Large Traders |
|
| SME Traders |
|
| Penalties |
|
How Freyr Supports EUDR Compliance
Freyr manages the technical aspects of EUDR compliance to keep your supply chain transparent and deforestation-free.
Our support includes:
- Interpretation of regulation and actionable guidance
- DDS report preparation and supplier training materials
- Standardized documentation and supplier coordination
- Data consolidation and geolocation mapping
- Local legislation review, risk assessments, and audit planning
- Annual DDS system review and compliance reporting
Through this approach, Freyr ensures you maintain EU market access and demonstrate your commitment to sustainability.
Conclusion
The EUDR is more than just a regulation; it drives the transformation toward transparent and deforestation-free supply chains in the EU. With the right tools and expertise, businesses can achieve full EUDR compliance and demonstrate their commitment to sustainable trade.
With Freyr by your side, you can confidently navigate the EU deforestation law, reduce time to compliance, and protect your product and brand reputation.
