The European Commission announced today the release of its simplification review of the EU Deforestation Regulation (EUDR), its new law aimed at ensuring that products imported to or exported from EU markets no longer contribute to deforestation and forest degradation globally, revealing that simplification changes to the law since its introduction have reduced compliance costs for companies by approximately 75%, with most of the change from updates to the rules for small companies.

The Commission’s review also included some proposed changes to the scope of the EUDR – most notably exempting leather imports from the regulation – but did not appear to substantially reopen the substance of the new law, or further alter its application timeline, easing concerns of environmental groups and companies that have already invested in preparation for upcoming compliance.

In a statement released following the publication, nature conservation group WWF called the Commission’s review “a welcome shift from political scaremongering to practical implementation.”

Anke Schulmeister‑Oldenhove, Manager, Forests at the WWF European Policy Office, said:

“We’re encouraged to see the EUDR finally moving from promise to practice. But now the EU must hold the line. What we need now is decisive implementation, clear enforcement, and the political will to stand by the commitments already made.”

The EUDR was introduced by the EU Commission in November 2021, and adopted in 2023, with the aim of effectively banning deforestation-linked products on the EU market, and establishing strong compliance requirements for companies providing or utilizing key commodities and products such as palm oil, beef, timber, coffee, cocoa, rubber and soy, in addition to some of their derived products, such as leather, chocolate, tires, or furniture.

The regulation set rules for companies that place relevant products on the EU market, or export them, introducing mandatory due diligence obligations, including a requirement to trace the products back to the plot of land where they were produced, to prove that the products were produced on land that was not subject to deforestation after 2020, and are compliant with all relevant applicable laws in force in the country of production.

While initially set to come into force at the end of 2024, the EUDR was delayed by a year at the request of the Commission to give companies more time to prepare for its compliance obligations. In October 2025, the Commission proposed a series of changes to simplify and reduce the administrative burden of the EUDR, particularly for smaller companies, and in negotiations between the European Parliament and Council, lawmakers agreed to again push out the implementation of the law to the end of 2026 for large companies, and in mid-2027 for smaller operators.

As part of the agreement reached between the Council and Parliament, the co-legislators also added a requirement for the Commission to carry out a new simplification review of the EUDR by the end of April 2026 to evaluate the administrative burden and impact of the regulation, leading to concerns that the EUDR would again be reopened to even further changes.

As part of its new review, the Commission announced the release of a new draft delegated act adjusting the scope of the EUDR, including adding some downstream products such as soluble coffee and certain palm oil derivatives, while also excluding some, including leather, retreaded tires, product samples, certain packing materials, and used and second-hand products.

The Commission also published a report to Parliament and Council as part of its review describing the simplifications of the EUDR since the regulation entered into force in 2023, including an estimate that the measures taken have reduced annual compliance costs for companies in the scope of the law by around 75%, with total costs falling from an estimated €8.1 billion per year to €2.0 billion. The bulk of the cost savings resulted from the simplified compliance regime for micro and small operators, while additional contributing factors included the classification of more countries as “low-risk,” the ability to submit annual due diligence statements.

The Commission’s report also found that the new deforestation regulation is already having a positive impact, including driving increased investment in supply chain traceability, enhancing transparency and opening new market opportunities for deforestation-free products.

Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy, said:

“Today we introduce simplification measures which together with previous simplification efforts will substantially reduce administrative burden. They are expected to reduce annual compliance costs for companies by about 75%. Our efforts are fully focused on facilitating implementation in the most efficient way. We all now need to work towards a successful entry into application of the law by the end of 2026 and keep in mind its important objective of reducing deforestation globally.”