{"id":98842,"date":"2026-05-25T07:42:35","date_gmt":"2026-05-25T07:42:35","guid":{"rendered":"https:\/\/www.timberindustrynews.com\/?p=98842"},"modified":"2026-05-26T07:39:22","modified_gmt":"2026-05-26T07:39:22","slug":"businesses-still-warn-of-major-implementation-risks-of-eudr","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/businesses-still-warn-of-major-implementation-risks-of-eudr\/","title":{"rendered":"Businesses still warn of major implementation risks of EUDR"},"content":{"rendered":"

The European Commission says recent changes to the EU Deforestation Regulation (EUDR) could reduce annual compliance costs for companies by around 75%, mainly through simplified reporting obligations and lighter requirements for smaller operators.<\/p>\n

The measures form part of the Commission\u2019s EUDR simplification review published on May 4, following amendments adopted in December 2025 that also delayed implementation by one year. Large and medium-sized operators must now comply from December 30, 2026, while micro and small primary operators have until June 30, 2027.<\/p>\n

Under the revised framework, only first placers of products on the EU market and exporters will need to submit due diligence statements directly into the EUDR information system. Downstream operators will mainly be required to retain and transmit reference numbers linked to the original due diligence declarations.<\/p>\n

The Commission also introduced further product-scope adjustments. Some new products, including soluble coffee and certain plant oil derivatives, are now included under the Regulation, while others such as leather, retreaded tyres, product samples and some packaging materials have been exempted.<\/p>\n

\n

\u201cToday we introduce simplification measures which together with previous simplification efforts are expected to reduce annual compliance costs for companies by about 75%,\u201d said European Commissioner Jessika Roswall.<\/p>\n<\/blockquote>\n

The Commission also confirmed that it does not currently intend to reopen the core legal text of the EUDR, arguing that the latest measures provide legal certainty while reducing the administrative burden for operators.<\/p>\n

Despite the changes, industry groups say significant concerns remain over legal clarity, implementation costs and potential supply-chain disruption once the Regulation becomes fully operational.<\/p>\n

The European Woodworking Industries Confederation, CEI-Bois, said the review acknowledges several issues raised by the sector, but warned that parts of the framework could still create additional burdens for vertically integrated wood companies.<\/p>\n

\n

\u201cThis risks creating an uneven playing field compared to other operators and could introduce additional administrative burdens for integrated business models,\u201d CEI-Bois said.<\/p>\n<\/blockquote>\n

Broader concerns have also been raised by a coalition of 11 trade associations representing sectors covered by the EUDR. In a joint statement signed in April, the groups argued that \u201cfundamental flaws\u201d remain in the Regulation\u2019s design and implementation strategy despite the latest amendments.<\/p>\n

\n

\u201cThese include lack of legal certainty, unrealistic compliance requirements and administrative burdens,\u201d the statement said. \u201cThese risk causing market disruption, including supply shortages, increased costs and reduced competitiveness for EU sectors.\u201d<\/p>\n<\/blockquote>\n

The implementation burden is particularly sensitive for companies sourcing from multiple countries or working with fragmented supply chains. Even after simplification measures, operators must still maintain traceability systems, legality verification and due diligence documentation tied to origin and supplier chains.<\/p>\n

Businesses are especially concerned about suppliers outside the EU that may struggle to provide geolocation data, legality verification and digital documentation at the level required under the EUDR. Several companies fear this could reduce the available supplier base for certain commodities and create sourcing bottlenecks during the first years of implementation.<\/p>\n

The Commission says the EUDR information system has been updated to make compliance more user-friendly, including voluntary grouping of due diligence reference numbers and simplified declarations for small operators.<\/p>\n

At the same time, the Commission argues the Regulation is already reshaping supply chains globally. According to the review, at least 25 producer countries are implementing more than 60 government-led initiatives linked to EUDR compliance, often focused on traceability, forest governance and monitoring systems.<\/p>\n

Separate research by Global Canopy found that many companies trading forest-risk commodities have already accelerated work on traceability systems and supplier verification ahead of implementation. According to the latest Forest 500 report, the number of companies publicly reporting traceability mechanisms increased across eight of the nine commodity groups covered by the study, including timber and wood products.<\/p>\n

The report also found that 68 companies now explicitly reference the EUDR in public disclosures related to deforestation risk, while 44 companies describe the Regulation as a direct driver behind investments in traceability and supplier monitoring systems.<\/p>\n

\n

\u201cThe data points to companies gearing up for the prospect of the EUDR,\u201d said Chloe Rollscane, Research Associate at Global Canopy.<\/p>\n<\/blockquote>\n

However, Global Canopy also warned that progress remains uneven across industries and regions. Only 19 of the 500 companies assessed were classified as leaders, with strong deforestation commitments and significantly stronger implementation systems than most of the market.<\/p>\n

For many businesses, the main concern is no longer whether the EUDR will enter into force, but whether implementation can happen smoothly without creating delays, inconsistent enforcement or procurement disruption across international supply chains.<\/p>\n\n\n\n\n\n\n\n\n\n\n
Topic<\/th>\nTakeaway<\/th>\n<\/tr>\n<\/thead>\n
Compliance costs<\/strong><\/td>\nThe Commission says simplification measures could reduce annual compliance costs by around 75%.<\/td>\n<\/tr>\n
Main business concern<\/strong><\/td>\nCompanies still warn about legal uncertainty, administrative burden and supply-chain disruption.<\/td>\n<\/tr>\n
Supply chains<\/strong><\/td>\nBusinesses sourcing from multiple countries remain exposed to traceability and documentation challenges.<\/td>\n<\/tr>\n
Wood industry concern<\/strong><\/td>\nCEI-Bois says vertically integrated wood companies may still face disproportionate due diligence obligations.<\/td>\n<\/tr>\n
Global impact<\/strong><\/td>\nThe EUDR is already pushing producer countries and businesses to strengthen traceability systems and forest governance.<\/td>\n<\/tr>\n
Forest 500 findings<\/strong><\/td>\nGlobal Canopy says companies are already investing more heavily in supplier verification and traceability ahead of implementation.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The European Commission says recent changes to the EU Deforestation Regulation (EUDR) could reduce annual compliance costs for companies by around 75%, mainly through simplified reporting obligations and lighter requirements for smaller operators. 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