{"id":28140,"date":"2026-03-26T09:00:15","date_gmt":"2026-03-26T08:00:15","guid":{"rendered":"https:\/\/voelkerrechtsblog.org\/?p=28140"},"modified":"2026-04-08T18:04:05","modified_gmt":"2026-04-08T16:04:05","slug":"from-ambition-to-dilution","status":"publish","type":"post","link":"https:\/\/voelkerrechtsblog.org\/de\/from-ambition-to-dilution\/","title":{"rendered":"From Ambition to Dilution?"},"content":{"rendered":"

On 25 October 2025, the European Commission (\u2018EC\u2019) put forth a proposal<\/u><\/a> to amend the EU Deforestation-Free Products Regulation 2023\/115<\/u><\/a> (\u2018EUDR\u2019). After two months of negotiations at the European Union (\u2018EU\u2019) institutional level, a political agreement was reached at the end of December, with the adoption of a new Amending Regulation<\/u><\/a>.<\/p>\n

We offer a critical legal analysis of key changes introduced by the amendments: responsibility is moving from joint accountability between operators\u00a0and traders to a differentiated set of obligations that\u00a0places the primary burden on upstream operators.\u00a0This\u00a0significantly reduces what was widely considered one of the EUDR\u2019s most innovative features.<\/p>\n

Background <\/strong><\/p>\n

In alignment with the vision for the future of the EU put forth by the European Union Green Deal <\/u><\/a>(EGD) in 2020, the EUDR was initially adopted in May 2023. It aims to reduce the EU\u2019s contribution to deforestation and forest degradation, carbon leakage, and biodiversity loss by prohibiting the import or export of seven forest-risk commodities \u2013 cattle, cocoa, coffee, oil palm, rubber, soy, and wood \u2013 if they can be linked to deforestation and illegality in the country of origin.<\/p>\n

It thus establishes mandatory due diligence, transparency, and traceability requirements for relevant actors across targeted commodity chains. These include\u00a0operators (those first placing relevant products on the EU market or exporting them) and traders (those making already-marketed products available), who are\u00a0subject to differentiated obligations. National competent authorities in EU Member States (\u2018EU MS\u2019) are tasked with overseeing compliance through checks and enforcement measures, exercising discretion in how these are applied. These obligations, covering both commodities and their derivatives,\u00a0ensure that products illegally produced or associated with deforestation and forest degradation occurring after\u00a031 December 2020 cannot enter or exit the EU market.<\/p>\n

The EUDR builds on the approach of its predecessor, the EU Timber Regulation<\/u><\/a> (\u2018EUTR\u2019), which focused solely on the legality of harvested timber and imposed due diligence obligations only on the operator first placing timber products on the EU market. However, drawing on the findings of a 2021 fitness check<\/u><\/a>, the EUDR sought to revise this model by distributing compliance responsibilities downstream, therefore extending due diligence obligations within the EU. In doing so, it aimed to establish a joint liability scheme among the actors involved in the trade of these products, enabling greater collaboration, mutual oversight, and heightened vigilance across timber and agri-food supply chains, while expanding the possibilities for holding actors accountable for their supply-chain relationships. As will be developed hereafter, this scheme has evolved considerably amid recent political tensions.<\/p>\n

EUDR Implementation Delays and the 2025 Amending Regulation <\/strong><\/p>\n

Since its inception, the EUDR sparked heated debate, both within the EU and abroad. In October 2024, in response to pressures from the private sector and third countries, the EC proposed a 12-month delay<\/u><\/a> to the application of the EUDR, pushing compliance deadlines to 30 December 2025 for large companies and 30 June 2026 for micro\/small enterprises. In the interim, several implementing measures were also adopted, including further simplification<\/u><\/a> of obligations. These changes have brought further difficulties for EU MS competent authorities that had already begun to adapt their domestic law.<\/p>\n

The issue returned to the political agenda in October 2025, when the EC tabled a new proposal<\/u><\/a>\u00a0<\/a>to postpone the EUDR\u2019s application due to significant technical issues with its Information System<\/u><\/a>. Despite strong opposition <\/u><\/a>from civil society and some industry groups, the European Parliament and the Council reached an agreement<\/u><\/a> and ultimately adopted Amending Regulation 2025\/2650<\/u><\/a> on 26 December 2025, just four days before the EUDR was due to enter into application, delaying enforcement by another year to 30 December 2026 for large and medium-sized operators, and 30 June 2027 for micro and small undertakings.<\/p>\n

The amendments further introduced new targeted obligations for specific sub-categories of operators, while significantly easing requirements for traders. In addition, the EC is required to submit by 30 April 2026 a report assessing the impact and administrative burden of the EUDR (the \u2018Simplification Review\u2019). This process may revisit certain aspects, likely<\/u><\/a> adjusting the scope of products covered through delegated acts, potentially adding products such as palm oil soap and instant coffee, but without launching a new legislative revision. Finally, at the European Parliament\u2019s request, certain printed products have also been excluded from the EUDR scope.<\/p>\n

EUDR Amendments in Detail: <\/strong>Shifting<\/strong> Due Diligence Obligations <\/strong>Across<\/strong> the Supply Chain<\/strong><\/p>\n

The December 2025 amendments substantially reshaped the accountability framework originally established under the EUDR by concentrating due diligence requirements at one specific ring of the supply chain, namely on the first operator placing or exporting deforestation-risk products from the EU market (or \u2018upstream operators\u2019).\u00a0Downstream actors are now only required to retain information on their suppliers and clients (a table outlining the changes to the 2023 version is available here<\/u><\/a>). We discuss these changes and their implications below.<\/p>\n

Key Obligations Assigned to Upstream Operators<\/strong><\/em><\/p>\n

Upstream operators (in the ordinary sense, the first product importer or commodity traders) are now the principal actors targeted under the amended EUDR. Operators must establish a due diligence system allowing them to carry out thorough analyses, risk assessments, and mitigation measures for products they place on or export from the EU market. They must report these elements in a due diligence statement (\u2018DDS\u2019), and submit it to the competent authorities, enabling authorities to verify compliance. This entails adapting their internal procedures and value chains to ensure sufficient information is available to demonstrate that traded products are not associated with practices that would violate EU market rules.<\/p>\n

Within this framework, they now bear primary \u2013 though not exclusive \u2013 responsibility for fulfilling due diligence, transparency, and traceability obligations. In cases of non-compliance, upstream operators face significant sanctions, including fines of at least 4% of their annual EU turnover, product confiscation, and exclusion from public contracts or funding.<\/p>\n

Exemption from Direct Obligations for Micro and Small Primary Operators <\/strong><\/em><\/p>\n

Producers of relevant commodities that are micro and small enterprises (\u2018SMEs\u2019), newly designated as \u201cmicro and small primary operators\u201d, have on their end experienced a significant adjustment of their obligations. This sub-category consists of:<\/p>\n