Lang
Deforestation stands as the world's second-leading contributor to climate change, surpassed only by the burning of fossil fuels, and accounts for approximately 11% of all greenhouse gas emissions. Over the past six decades, more than half of the planet's tropical forests have been eradicated, resulting in significant biodiversity loss and imperiling numerous rare species.
Commodities such as cattle and palm oil – a key ingredient in products like frying fats, chocolate, and cosmetics – have been identified as primary drivers of this widespread deforestation. In response, the European Union's Regulation on Deforestation-Free Products (EUDR) will take effect from December 2026, or June 2027 for micro and small undertakings established by December 2024. This regulation prohibits the placing on the market, making available, or exporting of specific commodities and products within or from the EU unless they are certified as deforestation-free and produced in adherence to the legislation of their country of origin. Companies falling under the scope of this regulation face rigorous due diligence and reporting obligations.
Meanwhile, the United Kingdom is in the process of developing its own Forest Risk Commodity (UKFRC) regime, with enabling legislation already established in the Environment Act 2021. However, progress on the detailed aspects of this regime has been stalled for several years. In June, the UK Government announced notable revisions to its initial proposals, though the precise specifics of these changes are yet to be disclosed.
A further government consultation is scheduled for 2026, with the expectation that legislation will follow in 2027. Nonetheless, there is considerable uncertainty regarding whether recent changes in the Prime Minister and government officials will introduce additional delays or prompt a complete re-evaluation of the scheme.
In a recent legal update, Mayer Brown summarized the original key design features of the proposed UKFRC and highlighted its principal divergences from the recently updated EUDR. The firm then detailed the known elements of the UKFRC alongside aspects that remain undefined.
It is important to note that the EUDR will continue to apply within Northern Ireland. The UK Government has stated: 'The upcoming consultation will propose that the GB regime covers the same core commodities and underlying information requirements as the regulation in Northern Ireland where EUDR applies. This aligned approach is designed to prevent administrative duplication across the United Kingdom while helping British exporters to the European Union meet consistent data and traceability standards.' Consequently, a closer alignment with EU legislation is anticipated than was originally conceived, although the extent to which crucial design elements will be harmonized remains unclear. Many specific details of the UKFRC are still awaiting announcement.
Following significant opposition from industry stakeholders, the European Union introduced amendments to the EUDR in December 2025. These modifications eased obligations for downstream operators and traders, thereby reducing their compliance burden. They also established a category for micro or small primary operators, primarily EU farmers, with limited responsibilities. Subsequently, in May 2026, the European Commission updated its EUDR Guidance and FAQs to reflect these December 2025 amendments.
Despite these adjustments, the fundamental obligations and compliance burden for operators, particularly those importing into the European Union, remain largely intact. Adhering to the EUDR mandates the establishment, maintenance, and daily utilization of a complex compliance mechanism. This includes, among other requirements, the collection and analysis of substantial volumes of data and information, the implementation of robust supply chain traceability and segregation protocols for in-scope products, the assessment of products' adherence to the legislation in their country of production, and engagement with the EU's dedicated online EUDR platform.
Should Great Britain implement similar measures, companies falling within its scope will be required to dedicate considerable time and resources to ensure compliance. This effort will necessitate engagement with the entire supply chain to guarantee traceability, segregation, and the availability of all necessary data and documentation.
The UK Government's recent announcement is likely to offer some relief to many businesses that had been preparing for the possibility of navigating two entirely distinct regulatory frameworks. However, a number of practical aspects concerning the design of the regime that will apply in Great Britain, such as specific implementation details, still need to be clarified.
Footnotes: 1. See 'Fifth Special Report of Session – 2023-24: The UK's contribution to tackling deforestation: Government's Response to the Committee's Fourth Report'. 2. Per EUDR Guidance, FAQs and Commission Delegated Regulation of 13 July 2026 (the latter is not yet in force).
Source: Mayer Brown