EUDR Moving Forward
Navigating Recent Updates to the EU Deforestation Regulation and ESG Frameworks: Essential Insights for Businesses
The EU is actively refining its environmental and sustainability regulations to combat issues like deforestation and promote responsible business practices. Recently, the EU provided clarity on potential delays and simplifications to the EU Deforestation Regulation (EUDR), giving companies more time to prepare. However, efforts to simplify other key directives—the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) Omnibus were rejected by Parliament, increasing legal uncertainty. This article breaks down these developments, explaining what they mean for businesses and why they matter.
CSRD and CSDDD Simplification
On October 22nd, 2025, the EU Parliament rejected a compromise proposal from its Legal Affairs Committee (JURI) intended to simplify these directives. As a result, the omnibus will return for another vote in the next plenary session in November. In the meantime, a new deadline for amendments has been set, which could lead to further change or reopening parts of the compromise.
The legal uncertainty continues, even though a “stop-the-clock” mechanism was previously approved, businesses must continue preparing amid ongoing discussions.
Progress on the EUDR
On October 23, 2025, the EU Commission released its much-anticipated proposal to delay and simplify parts of the EUDR. Here's what it includes:
Adjusted timelines to comply
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Large and medium-sized companies: the original start date of December 30, 2025, remains in place. However, they'll receive a 6-month grace period during which enforcement and checks will be lenient, allowing time to adapt.
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Micro and small companies: These get a full 6-month delay, pushing their compliance date to December 30, 2026.
Simplification
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Due Diligence Statements (DDS): Only "upstream" operators—the first ones placing EUDR-covered products on the EU market—must submit a DDS. This is a formal declaration confirming compliance.
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Downstream operators: Those further along the supply chain (like retailers) no longer need to submit a DDS, easing their administrative load.
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Low-risk countries: Micro and small primary operators (e.g., farmers or growers) in areas deemed low-risk for deforestation can submit a one-time simplified declaration. Instead of providing exact geolocations, they can use a postal address.
These changes still need approval from the EU Council and Parliament. If passed, they'll take effect 20 days after publication in the EU Official Journal.