The EU's Zero-Deforestation Regulation mandates companies to ensure products sold in the EU carry no or negligible risk of causing deforestation, targeting key commodities like beef, cocoa, and soy.
EU introduces deforestation regulation
The European Union has enacted Regulation No. 2023/1115, known as the "Zero-Deforestation Regulation," which mandates that companies exporting or selling products in the EU ensure those products carry no or negligible risk of causing deforestation.Regulation targets major deforestation-linked products
The regulation focuses on products made from seven basic commodities: beef, cocoa, coffee, oil palm, rubber, soy, and wood. These products are identified using the customs nomenclature, and the regulation applies regardless of whether they are produced within the EU or imported.Companies must perform due diligence
Under the regulation, companies must perform a "due diligence" process to ensure their products are deforestation-free. This involves collecting and verifying information from suppliers, analyzing deforestation risks, and implementing risk-mitigation measures if needed.Simplified due diligence for low-risk areas
If products originate from countries or regions classified as having a low risk of non-compliance, the due diligence process can be simplified. This aims to reduce the administrative burden on companies operating in these areas.Regulation applies to different supply chain actors
The regulation assigns different obligations based on a company's role in the supply chain. "Operators" — those who first place products on the EU market or export them — have the most responsibility. "Downstream operators" and "traders" have more limited obligations.Regulation comes into effect in late 2026
The regulation will take effect on 30 December 2026 for most operators, with a later deadline of 30 June 2027 for products already covered by an earlier EU regulation on wood. No additional measures are required for implementation.
