European lawmakers make cuts to the deforestation regulation

At the end of 2025, the European legislator decided to postpone the application of the Deforestation Regulation (EUDR) for a second time by one year. We wrote about this in the Legal Update 'The European Deforestation Regulation has been postponed: rules will not come into force until the end of 2026'.  Along with this postponement, the European Commission was given a clear task: to evaluate the regulation and put forward a proposal to simplify the rules.

On 4 May 2026, the Commission completed this task. It published a package of documents designed to ensure simpler implementation and a reduced administrative burden for market participants. The package consists of:

• a simplification report
• an updated FAQ
• an updated guidance document
• a draft delegated act amending the scope of the EUDR

In this Legal Update, we discuss the key proposed changes and what they mean in practice.

Why is the EUDR relevant in practice?

Deforestation is a major driver of global CO₂ emissions. The EUDR forms an important part of the European Green Deal. This regulation ensures that certain raw materials, such as cattle, cocoa, coffee, oil palm, rubber, soya and timber, and products derived from them that are placed on the market in the EU or exported from the EU, have not caused deforestation or forest degradation. Do you import goods into the EU? If so, you may be subject to due diligence obligations under the EUDR.

Amendments

The Commission’s package proposes various amendments to the EUDR. The most significant changes relate to adjustments to the product scope and a simplification of the due diligence obligations for market participants. In concrete terms, this means the following:

• The Commission proposes to exclude a significant number of products from the scope of the Deforestation Regulation. These include products in the categories of cattle, timber, oil palm and rubber. 
• At the same time, a number of products are being added, including instant coffee and various palm oil derivatives.
• The package clarifies the due diligence obligations for micro and small market participants further down the supply chain. Simplified due diligence obligations apply to these market participants.
• The EUDR’s information system has been updated to reflect the changes to the Regulation. In doing so, the Commission is committed to working closely with the Member States to ensure that information from national databases can be integrated into the system. 
• In addition, new tools have been announced to help market participants assess whether products are deforestation-free and have been produced in accordance with the applicable laws and regulations of the country of production.

What does this mean in practice?

The simplification package reduces the administrative burden associated with complying with EUDR obligations. According to the Commission, this package will achieve a 75% reduction in annual compliance costs compared with the original EUDR. Micro and small enterprises in particular will benefit from this. Although the practical impact remains to be seen, the package appears to be a welcome addition that meets a clear need. For companies facing obligations under the EUDR, it is important to have completed the necessary preparations by the end of this year. To do so, they will need to map out the supply chain for their products. Furthermore, compliance with the EUDR must be ‘embedded’ in the company’s sustainability and business strategy. After all, when the EUDR comes into force, they must be able to demonstrate that their supply chains are deforestation-free. 

We continue to closely monitor developments surrounding the Deforestation Regulation.

Would you like to know more about the Deforestation Regulation in general, or what this simplification means in practical terms for organisations? Please feel free to contact one of our specialists.