Potential tensions surround the European Union's Anti-Deforestation Law: new directions for forest regulation?

By Paula Wojcikiewicz Almeida, Gabriel Ralile de Figueiredo Magalhães, Mariana de Brito Mariani, Lucas Lemos, Pedro Henrique Lavinas Ortman, Bianca Martins

The European Deforestation-Free Regulation (EUDR), a European Union (EU) initiative to combat deforestation, has generated concerns about potential global economic repercussions. The regulation seeks to reduce greenhouse gas (GHG) emissions and biodiversity loss by establishing rules regarding the marketing of seven commodities in the EU market: livestock, cocoa, coffee, palm oil, rubber, soy, and timber. Despite coming into effect in 2023, the EUDR's obligations will only be fully implemented in December 2026 or, in the case of small and medium-sized enterprises, in June 2027.

Although the EUDR does not directly apply to countries outside the EU, potential extraterritorial effects require these nations to comply with the regulation in order to introduce their products into the EU market, including Brazil. The country's peculiarity lies in its extensive forest area and its important role in the international trade of commodities regulated by the EUDR. Furthermore, Brazil is home to a large part of the Amazon Rainforest, one of the world's largest tropical forests, whose territory is at risk of deforestation.

Given the complexity of the EUDR and its obligations that seek to encompass the entirety of value chains, reactions within and outside the EU have criticized the high compliance costs and the uncertainties regarding practical aspects involving the implementation of the standard. Positions in this regard, observed in countries such as Germany, Austria, Brazil, and Indonesia, have also included calls for simplification of the standard.

As an example, on July 22, 2025, the EU opened a public consultation to discuss potential simplifications of its environmental legislation, including the EUDR. This initiative is in line with previous measures to simplify other standards, such as the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Board Adjustment Mechanism (CBAM), and the Corporate Sustainability Reporting Directive (CSRD).

Common criticisms directed at the EUDR include potentially excessive bureaucracy; technical difficulties; Risks of legal liability; competitive disadvantages for small businesses; and demands for simplifications, such as the creation of a "zero risk" category for countries with low deforestation risk, exempting them from certain obligations. Shortly after the public consultation, the European Commission announced a possible further postponement of the regulation due to technical problems related to the Information System, the portal for submitting documents required by the EUDR.

Given what appear to be "tensions" related to the implementation of the EUDR, there is a need to better understand the challenges and opportunities associated with the regulation. Research conducted by the Center for Research in Global Law (CPDG) and the Jean Monnet Centre of Excellence on EU-LA Global Challenges (CEJM), both coordinated by FGV Direito Rio professor Paula Wojcikiewicz Almeida, seeks to fill this gap by investigating the regulatory challenges that policymakers and economic agents in Brazil face regarding the indirect implementation of the EUDR. The project "Monitoring the Impacts of the European Deforestation-Free Regulation (EUDR) in Brazil" analyzes the impacts and opportunities in the country related to the EUDR through a mixed methodology that includes bibliographic and normative review, collection and analysis of international trade data, and semi-structured interviews with relevant stakeholders. The project team is composed of Professor Paula and researchers Gabriel Ralile, Bianca Martins, Pedro Ortman, Mariana Mariani, and Lucas Lemos.

In addition, the research also addresses other mechanisms applicable to forest protection that may interact with the EUDR. For example, it analyzes EU trade agreements and their dispute settlement and sustainable development mechanisms, particularly addressing the case of the EU-Mercosur agreement. Furthermore, it investigates the potential interaction between the EUDR and the Tropical Forests Forever Facility (TFFF), which aims to finance countries that guarantee the conservation of their forests.

Despite the potential "tensions" surrounding the EUDR demanding simplifications, and even further postponement, understanding its provisions and practical implications, in a context of interaction with other initiatives, allows for the exploration of scenarios and recommendations for an efficient implementation of the standard, thus providing input for decision-makers.

Originally posted 22/10/2025 at FGV Possíveis tensões envolvem a Lei Antidesmatamento da União Europeia: novos rumos para a regulação de florestas? | Portal FGV. Updated 09/01/2025.