The entry into force of the EU Deforestation-Free Regulation (EUDR, Regulation (EU) 2023/1115) marks the official arrival of a "new era of ecological compliance" for global forestry and agricultural product trade.
As a mandatory regulation under the European Green Deal framework, it is not an isolated environmental policy, but works in synergy with the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Due Diligence Directive (CSDDD), driving the transformation of global supply chains towards "deforestation-free and sustainable" through trade rules.
For enterprises planning to enter the EU market, understanding its core requirements and practical impacts is crucial to seizing market opportunities.

The introduction of EUDR stems from global consensus on climate governance.
As the core carbon sink of the Earth, the global deforestation area reaches 10 million hectares every year, and the carbon emissions caused by forest degradation are far greater than deforestation itself.
Tropical deforestation associated with EU consumption accounts for 10% of the global total. Therefore, the EU has translated "consumer-side responsibility" into hard constraints on the supply chain through legislation, with the core goal of ensuring that specific goods entering the EU are not linked to deforestation or forest degradation after December 31, 2020.
Its regulatory framework focuses on two core aspects:
Clear coverage scope: Directly regulates seven categories of high-risk commodities and their derivatives, including cattle, cocoa, coffee, palm oil, rubber, soybeans, and wood.
Enterprises that either directly export these commodities or produce downstream products containing relevant raw materials (such as chocolate, tires, furniture, etc.) must meet compliance requirements.
The core of compliance is "verifiable facts": Enterprises must submit a "Due Diligence Statement (DDS)" to confirm two points: first, the raw materials are produced on land free of deforestation after 2020; second, the production process complies with the laws of the country of origin.
The key indicator supporting DDS is "source geolocation data" – enterprises must collect accurate GIS coordinates of the land parcels where raw materials originate. This is the foundation of compliance, and the lack of complete data will directly affect the entry of goods.

Market Access: Upgrade from "Document Review" to "Data Verification"
In the past, EU compliance reviews mostly relied on paper documents or sampling inspections. After the implementation of EUDR, competent authorities of member states will conduct precision verification of geolocation data and compliance evidence in DDS based on risk assessment.
If the coordinates are inaccurate or the data is incomplete, customs authorities have the right to refuse entry of goods. Market access no longer only depends on "whether documents are complete", but more on "whether data is authentic".
Compliance Costs: Structural Increase with Differentiated Room
Enterprises need to invest resources to build traceability systems, purchase geographic information tools, connect with satellite monitoring services, and train upstream suppliers, leading to a slight increase in short-term operating costs.
However, the EU has formulated differentiated policies: China is classified as a "low-risk country", allowing enterprises to simplify due diligence processes;
Compliance obligations are implemented in phases: covering large and medium-sized enterprises by the end of 2025, and extending to micro, small and medium-sized enterprises (MSMEs) by mid-2026. MSMEs can also be exempt from some complex procedures to reduce compliance pressure.
Supply Chain: Shift from "Mixed Procurement" to "Precision Management and Control"
Traditional agricultural supply chains often adopt the model of "mixed processing of multi-source raw materials", but EUDR requires full-chain traceability from "land parcel to product".
Enterprises need to adjust procurement and production processes, separate storage and processing links for raw materials from different sources, and avoid affecting the compliance of the entire batch of goods due to the lack of data for a small amount of raw materials. Supply chain management must shift from "extensive" to "precision".

Faced with EUDR's rule upgrades and data requirements, many enterprises may fall into a dilemma of "not knowing if they are within the regulatory scope, how to collect data, or how to control costs".
Based on in-depth interpretation of the regulation and industrial practical experience, SKYCO2  provides end-to-end EUDR compliance services for enterprises, helping you address all bottlenecks in compliance, seamlessly meet EU market access requirements, and confidently respond to EUDR to seize EU market opportunities!
EUDR is not a trade barrier, but an opportunity for enterprises to upgrade their sustainable supply chains.
If you are struggling with compliance planning for the EU market, please feel free to contact SKYCO2. We will use professional interpretation to help you clarify your direction, avoid risks in advance, and firmly seize EU market opportunities.