European Commission Softens EUDR Reporting Requirements

The European Commission yesterday announced changes to the administration of the new European Union deforestation-free supply chains law (EUDR), including softened requirements for due diligence reporting. 

The Commission said the changes are designed to reduce the “administrative burden” associated with the law by about 30%, particularly among large companies in Europe. 

The landmark law — which applies to coffee and six other agricultural goods — is intended to ensure no new deforestation in European supply chains. After pushback from stakeholders in numerous industries, including coffee, implementation of the 2022 law among large companies was delayed by a year in 2024 to Dec. 30, 2025, for large companies, and until June 2026 for micro or small enterprises.

The law comes as tropical deforestation continues at an alarming rate of approximately 3.7 million hectares (9.1 million acres) per year, or the equivalent of nearly 10 American football fields per minute. Agricultural activities account for approximately 90% of tropical deforestation.

The EU’s proposed changes to the law are primarily associated with reducing due diligence reporting, particularly among large companies and downstream companies. 

Under the changes, companies will be allowed to submit due diligence statements regarding deforestation annually, rather than for every shipment to the EU. Additionally, large companies will be allowed to reuse existing due diligence statements when goods that were previously on the EU market are “re-imported.”

The changes also simplify the “ascertaining” process that due diligence has been carried out, “so that large companies downstream benefit from simplified obligations.” 

While these changes and more appear to reduce burdens on large companies in Europe, they do not explicitly address the market participation of smallholder coffee farmers, which was one of the most commonly cited refrains when large companies were calling for delays and changes to the law. 

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