European Union Updates Deforestation Law to Expand Palm Oil Coverage

The European Commission has updated the scope of the European Union's Deforestation Regulation (EUDR), expanding its coverage to include certain palm oil derivatives while removing leather and selected other products from the regulation. The revised product list is intended to improve the implementation of the law by better aligning its requirements with commodities that directly contribute to deforestation. The changes will take effect from 30 December 2027.

Under the revised rules, palm oil derivatives used in the production of oleochemicals, along with products such as instant coffee and frozen cattle tongues, will now fall within the regulation's scope. Companies placing these products on the EU market will be required to demonstrate that their supply chains are free from deforestation and comply with the regulation's due diligence requirements.

At the same time, the Commission has removed leather, hides, skins and certain other products from the regulation after concluding that these items are not direct drivers of deforestation. The amendments are designed to simplify compliance while ensuring that the regulation continues to target commodities with the greatest environmental impact.

The EUDR remains a central element of the European Union's efforts to combat global deforestation and forest degradation by requiring companies to verify that covered commodities placed on the EU market are not linked to deforested land. The latest revisions seek to strengthen the effectiveness of the regulation while providing greater clarity for businesses preparing for its implementation.

Expanding EUDR palm-oil coverage narrows the workaround options that upstream producers had been counting on, and it pushes traceability and geolocation compliance deeper into the supplier base. Our supply-chain-and-operations and sustainability-due-diligence teams help palm-oil producers, refiners and end-users evaluate EUDR exposure and build the traceability and due-diligence infrastructure the regulation actually requires.