EU Deforestation Regulation implementation

The European Union Deforestation Regulation (EUDR) establishes strict requirements for commodities such as beef, cocoa, coffee, palm oil, rubber, soy, wood, and their derivatives. To access the EU market, products must be produced in accordance with the laws of their country of origin and must not originate from land deforested after December 31, 2020.

Compliance requires rigorous due diligence, including the collection of geolocation data for the specific plots of land where raw materials were produced. For Brazilian exporters, this necessitates organized data that can trace livestock back to specific establishments. While Brazil’s Rural Environmental Registry (CAR) may be used, it must be supported by verifiable production data to ensure conformity.

Implementation timelines are tiered by business size: large and medium-sized enterprises must comply by December 30, 2026, whereas micro and small enterprises have until June 30, 2027. Non-compliance carries significant penalties, including fines of up to 4 percent of total annual EU turnover, market entry bans, and the confiscation of goods.

As the December 30, 2026, deadline for large and medium-sized operators approaches, structural challenges persist. A study by the International Institute for Sustainable Development (IISD) indicates that smallholder farmers face hurdles such as high compliance costs and unclear land ownership documentation. In Indonesia, compliance costs are estimated to be between 70 and 200 euros per farmer. Additionally, logistical complexities remain regarding the aggregation of goods, as traceability systems must maintain a continuous link between specific plot IDs, individual farmers, harvest batches, and final shipments.