Clarius.LegalNewsroom
- Dr Arnt Glienke, LL.M.
- 26.03.25
- Reading time: 3 Minuten
EU deforestation regulation:What companies need to know now
With Regulation (EU) 2023/1115, known as the EU Deforestation Regulation, the European Union has taken a significant step towards combating global deforestation and forest degradation. It is part of the EU’s strategy to reduce its environmental footprint and fulfil international commitments (Paris Agreement, UN Sustainable Development Goals). This deforestation regulation obliges companies to ensure that certain raw materials and products made from them are deforestation-free before they are offered on the EU market or exported from the EU.
Background and objectives of the Deforestation Ordinance
The Deforestation Regulation was developed to minimise the EU’s contribution to global deforestation and forest degradation. Comprehensive compliance requirements for companies that market or export certain goods in the EU have already been postponed and will now be mandatory from 30 December 2025. They must prove that their products are deforestation-free.
The core requirements are due diligence obligations, including the traceability of raw materials by means of geolocalisation of all relevant cultivation areas and detailed due diligence declarations. Companies must provide information on products, time of production and risk assessments of the country of production. Compliance requires internal process adjustments.
Violations can result in severe sanctions such as
- Fines and penalties (at least four per cent of annual turnover)
- Temporary ban on placing relevant raw materials and products on the market
- Temporary exclusion from public procurement
- Reimbursement of the authorities’ financial expenses
By introducing strict due diligence obligations, companies are to ensure that certain raw materials such as cattle, cocoa, coffee, oil palm, rubber, soya and wood and their downstream products have been produced without deforestation. This means that these products were not produced on land that was deforested after 31 December 2020. However, other topics such as indigenous land status are also relevant.
Who is obligated?
The Deforestation Regulation affects all companies that place relevant raw materials or products made from them on the EU market, supply them or export them from the EU. This includes in particular
- Manufacturers and importers of the raw materials and products concerned
- Retailers who sell these products within the EU
- Exporters who market the products concerned outside the EU
Timetable for the implementation of the Deforestation Ordinance
The implementation of the deforestation ordinance is staggered:
- The obligations for large companies will apply from 30 December 2025.
- Small businesses have an extended deadline until 30 June 2026 to meet the requirements.
These deadlines are intended to give the affected companies sufficient time to adapt their internal processes and optimise their supply chains.
Challenges and criticism of the deforestation regulation
The Deforestation Ordinance poses considerable implementation challenges for companies. In particular, the requirements for traceability and supply chain documentation require considerable adjustments to internal processes. The regulation has also been criticised for its bureaucratic requirements and potential barriers to trade. It is not without reason that implementation, which was originally planned for the end of 2024, has been postponed by a year to give companies more time to prepare.
Support from CLARIUS.LEGAL for the deforestation ordinance
Timely and effective implementation of the Deforestation Regulation is crucial to avoid potential fines and trade restrictions. CLARIUS.LEGAL supports companies with legal expertise and practice-oriented solutions to successfully master these challenges.
Find out here about our services in relation to the Deforestation Ordinance. We will be happy to support you.
