The EU Deforestation Regulation: A Defining Moment for Global Supply Chains and Forests

As 2025 draws to a close, the European Union’s landmark Deforestation Regulation (EUDR) stands at a crossroads, both as a bold policy instrument to protect the planet’s forests and as a complex compliance challenge reshaping global trade. 

Originally set to take effect at the end of 2024, the EUDR requires companies trading in key commodities such as coffee, cocoa, palm oil, rubber, soy, cattle, and wood to prove that their products are not linked to deforestation or forest degradation. However, after widespread concern about readiness, the regulation’s application has now been delayed until at least December 2025, with a further one-year postponement under consideration by the European Commission. 

Why the Delay Matters 

While the EUDR remains legally in force, its practical enforcement has been slowed by several factors. 

Technical bottlenecks: The EU’s central due diligence IT system, designed to house traceability data for millions of shipments, has proven difficult to scale. 

Operational readiness: Many organizations, particularly smallholders and producers in emerging markets, have struggled to align land data, geolocation mapping, and certification frameworks with the EUDR’s stringent traceability requirements. 

Political friction: Exporting nations such as Indonesia and Brazil have voiced concerns about the regulation’s fairness and accessibility, warning that it could disadvantage smaller producers and disrupt trade. 

Despite these challenges, the regulation’s intent remains clear: to ensure that products consumed in Europe are not driving deforestation elsewhere in the world. 

What It Means for Organizations 

The EUDR signals a major shift in corporate accountability and supply chain transparency. Companies can no longer rely on declarations or sustainability pledges; they must prove, with verifiable data, that their products are deforestation-free and legally sourced. 

For large operators, this means: 

• Building robust traceability systems capable of linking products to precise geographic plots of land.
• Integrating satellite data, certification records, and supplier declarations into transparent due diligence statements.
• Reassessing supplier partnerships, especially in regions lacking digital land registries or deforestation monitoring infrastructure. 

Small and medium-sized enterprises face similar requirements, although they will have a six-month grace period. This highlights the importance of shared industry tools and collaborative compliance frameworks to prevent fragmentation across supply chains. 

What It Means for Forests 

For the world’s forests and the communities that depend on them, the EUDR represents one of the most ambitious environmental regulations ever enacted. If implemented effectively, it could: 

Prevent millions of hectares of forest loss, particularly in tropical regions. 

Encourage sustainable land-use practices and legal compliance across agricultural sectors. 

Raise global expectations, inspiring similar frameworks in other major markets such as the United States and the United Kingdom. 

Yet every delay carries risk. Deforestation continues at an alarming rate, with an estimated 10 million hectares of forest lost each year. The longer implementation lags, the harder it becomes to align environmental goals with economic realities. 

A Call to Leadership and Assurance 

Organizations that act now by investing in traceability, collaborating with suppliers, and integrating independent assurance will not only stay ahead of compliance deadlines but also strengthen their market resilience and credibility. 

At Intertek Business Assurance, we help companies navigate this transition with confidence. Through independent verification, supply chain mapping, and sustainability assurance, we enable organizations to demonstrate compliance with the EUDR and broader ESG frameworks such as CSRD, CSDDD, and ISO 14001. 

Our experts support every stage of compliance, from risk-based due diligence and supplier assessments to on-the-ground verification, remote data validation, and certification. By applying science-based methodologies and transparent reporting, we help clients protect both their reputation and the world’s forests. 

The EUDR is not simply a compliance requirement; it is a strategic opportunity to lead responsibly, protect biodiversity, and build trust through measurable action. The world is watching. Whether the next year marks another pause, or a turning point will depend on how decisively both regulators and industry leaders act today to ensure that the EUDR fulfils its promise of a global marketplace where growth and forest conservation can coexist.  

What to do now 

While the European Commission continues refining technical systems and guidance, businesses should use this period proactively to prepare for full implementation. Here are three practical steps to begin: 

Map your supply base – Identify which of your products fall within the EUDR commodity scope and determine where they are sourced. 

Locate your land data – Work with suppliers to collect geolocation coordinates and land-use information for all relevant production plots. 

Engage early with verification partners – Independent assurance and data validation can identify traceability gaps and help build readiness ahead of enforcement. 

These early actions demonstrate commitment, reduce compliance risk, and help ensure smooth access to EU markets once enforcement begins. 

For more information, please visit Intertek EUDR Compliance Solutions and Sustainable Forestry Management.