In a decisive move to fight climate change and protect global forests, the European Union has introduced a groundbreaking regulation: the EU Deforestation Regulation (EUDR). This legislation will change how agri-commodities and forest-based products are traded globally—especially for countries exporting to the EU.

But what exactly is EUDR? Who does it apply to? And how can businesses stay compliant?

Let’s explore.

What is EUDR?

The EU Deforestation Regulation (EUDR) is a law passed by the European Union in June 2023, designed to ensure that products entering the EU market do not contribute to deforestation or forest degradation anywhere in the world.

This regulation applies to seven key commodities and their derived products:

Cattle
Cocoa
Coffee
Oil palm
Rubber
Soy
Wood

That includes everyday items like leather, chocolate, furniture, paper, and palm oil used in processed foods.

From December 30, 2024, companies must demonstrate that their products are:

Why Was EUDR Introduced?

The EU consumes a significant share of global commodities that are often linked to deforestation—especially in tropical countries. Between 1990 and 2020, the world lost over 420 million hectares of forest, mainly due to agricultural expansion.

With EUDR, the EU aims to:

Combat climate change
Promote sustainable land use
Encourage responsible trade
Protect biodiversity
Ensure ethical sourcing in global supply chains

Key Compliance Requirements

To sell or export the listed commodities to the EU, businesses must ensure that:

1. Deforestation-Free

Products must not originate from land that was deforested or degraded after December 30, 2020—regardless of whether local law permitted such activities.

2. Legally Produced

Production must comply with all relevant local laws, including environmental protection, land rights, labor conditions, and tax compliance.

3. Due Diligence Statement

Companies must conduct a risk assessment, document the results, and submit a due diligence statement to the EU information system before the product reaches the market.

What Data Must Be Collected?

To meet EUDR requirements, businesses must collect and maintain:

Geolocation of production plots
Farm or producer details
Commodity and quantity information
Date of production
Supply chain records
Legal documentation from country of origin

This level of traceability is essential for proving that the product is deforestation-free and legally produced.

EUDR Timeline

June 29, 2023 – Regulation came into force
December 30, 2025 – Compliance becomes mandatory
June 30, 2026 – Final deadline for small and medium enterprises (SMEs)

Click here to check recent update on EUDR

The EU will conduct audits and checks, and non-compliant shipments may face rejection, penalties, or bans.

Who Will Be Affected?

EUDR impacts everyone involved in the production, trade, and export of listed commodities:

Agri Exporters and Traders
FPOs and Cooperatives
Manufacturers and Processors
Input Suppliers and Certification Bodies
Logistics and Distribution Partners

Whether you’re a cocoa exporter in Ghana or a coffee cooperative in India, EUDR compliance is no longer optional.

How Scalion Helps with EUDR Compliance

At Scalion, we offer a comprehensive platform to help agri-businesses navigate EUDR with confidence.

Data Collection

Capture geolocation data, production details, and supply chain information at the source.

Product Authentication

Verify origin and identity with tamper-proof QR codes and traceability tools.

Due Diligence and Risk Assessment

Generate EUDR-ready due diligence statements and identify high-risk areas using built-in intelligence.

Real-Time Dashboard

Track product movement, documentation, and compliance in one place.

Turn Compliance into a Competitive Advantage

EUDR isn’t just about avoiding penalties—it’s about future-proofing your business for global trade.

Consumers and regulators are demanding more transparency, sustainability, and traceability. By adopting digital solutions like Scalion, you’re not only staying compliant—you’re building trust and opening new markets.