The European Commission has announced simplifications to the implementation of its Deforestation Regulation in response to complaints about the cost of it for businesses.
The initiative is part of its more general ongoing focus on streamlining regulatory processes while continuing to apply the overall ambitions of the Green Deal. Regarding EUDR simplification, the Commission published (1) an updated Guidance Document, (2) an updated FAQs document, and (3) a draft Delegated Act.
EU eases deforestation law reporting for companies https://t.co/hCPCz0w9id pic.twitter.com/NZDkoSjoFk
— Reuters Legal (@ReutersLegal) April 17, 2025
The changes are aimed at reducing administrative expenses for EU companies by approximately 30. The simplifications will be reinforced by a Delegated Act, which is now open for public consultation.
Latham and Watkins lists the most notable simplification measures:
“- Reuse of Due Diligence Statements (DDSs): Large companies can now reuse existing DDSs when relevant products previously on the EU market are reimported, reducing the level of information required to be processed through the IT system.
– Authorised Representatives: Further clarifications on the role of authorised representatives are being provided. An authorised representative can submit DDSs on behalf of members of company groups, streamlining the submission process.
– Annual Submission: Companies are permitted to submit DDSs annually instead of in respect of every shipment or batch placed on the EU market, potentially significantly reducing the number of DDSs required.
– Simplified Obligations: The Guidance Document provides clarifications on the requirement to “ascertain” that due diligence has been carried out, allowing large companies downstream in the value chain to benefit from simplified diligence and reporting obligations. Such large companies will now be primarily focused on collecting reference numbers of DDSs from suppliers and using those references for their own DDS submissions.”
At the end of 2024, the EU was already forced to postpone the new regulation due to protests, also because it had been upsetting a number of its key trading partners.
Malaysia, a key palm oil exporter, was one of the first countries to complain about EUDR, arguing that it makes little sense to impose these new bureaucratic burdens on its palm oil exports while, the country’s palm oil sector already succeeded in significantly reducing deforestation in the palm oil sector, according to NGOs.
The strict national monitoring standard, the MSPO, has been credited for that. A new version of this standard will be even stricter than that of the EU, but the EU nevertheless refuses to label it equivalent.
Companies will need less paperwork to comply with the European Union's anti-deforestation law as of December when it kicks in with changes by the European Commission.https://t.co/YBJybobcq0#EUDR #EuropeanUnion #deforestation #supplychain
— European Supermarket Magazine (@esm_magazine) April 18, 2025
In response, the Malaysian Palm Oil Council stated that it “acknowledges the Commission’s efforts to ease the administrative burden on businesses, and strongly supports global initiatives to protect forests and preserve biodiversity. “
It did however warn at the same time that “compliance mechanisms must reflect real differences, as a one-size-fits-all approach imposes unnecessary costs on low-risk producers, driving up prices for European consumers without delivering environmental benefits.”
Thereby, it stressed:
“While the simplification package includes long-awaited clarifications, such as allowing annual DDS submissions that can be passed along supply chains, it offers no substantive update on the Commission’s benchmarking process. These simplifications may not fully benefit producing countries, as they are still required to meet the EUDR’s rigorous due diligence requirements, which takes up significant financial resources, especially for our smallholders.”
MPOC Chief Executive Officer, Belvinder Sron thereby commented: “We believe that further measures will be necessary to achieve the Commission’s 30% cost reduction target. To deliver meaningful savings for both producers and consumers, the EU should move towards greater alignment with existing national certification schemes that meet equivalent standards. Additionally, a broader designation of low-risk status would reduce duplication and streamline compliance”.
Simplified EU rules may not fully benefit producers, more measures needed, says palm oil councilhttps://t.co/VpOzfYe0z8
— The Edge Malaysia (@theedgemalaysia) April 17, 2025