What are the penalties for EUDR?

What are the penalties for EUDR?

Are you looking for the right CSRD solution?
Use our guides and database with +100 CSRD solutions.
Learn more
Need help with CSRD? Here is an overview.
Do you have to comply with CSRD?
Download our Free CSRD Guide now.
Learn more

The EU's Deforestation Regulation (EUDR) presents a significant development for companies dealing in commodities like soy, coffee, and beef within the EU market. EUDR mandates robust due diligence to ensure deforestation-free supply chains. Non-compliance can result in substantial financial penalties, potentially reaching 4% of a company's EU turnover. This regulation underscores the EU's commitment to curbing deforestation and promoting sustainable land use practices.

Understanding the EU Deforestation Regulation (EUDR)

The EUDR introduces stringent requirements for companies to ensure that their supply chains do not contribute to deforestation. This regulation covers commodities such as soy, beef, palm oil, cocoa, coffee, and timber, including derived products. Companies must implement comprehensive due diligence processes, including the tracing and verification of supply chains to confirm that products are deforestation-free. The EUDR aims to promote sustainable practices and reduce the EU's environmental impact.

Key Commodities under the EUDR

Companies must ensure their supply chains for commodities like cocoa, coffee, palm oil, soy, beef, rubber, and timber are deforestation-free. The regulation requires comprehensive due diligence, including traceability and verification processes. This commodity traceability and product origin verification are crucial for compliance with the EUDR and access to the EU market.

Penalties for Non-Compliance with the EUDR

Non-compliance with the EUDR can result in significant penalties. These include fines and the confiscation of goods. These compliance penalties serve as a strong deterrent for companies that fail to implement the necessary due diligence procedures and fail to ensure deforestation-free supply chains. The non-compliance consequences are severe, and companies must take the necessary steps to avoid them.

Preventing Environmental Degradation

The EUDR is a critical tool in the fight against global deforestation. By enforcing stringent compliance requirements and penalties, the regulation promotes sustainable land use and helps to prevent environmental degradation. It encourages companies to adopt sustainable practices and to contribute to the reduction of the EU's environmental impact.


In conclusion, the penalties for non-compliance with the EU Deforestation Regulation are severe and can include fines and product confiscation. Companies must take the necessary steps to ensure that their supply chains are deforestation-free and that they are in compliance with the EUDR's due diligence procedures. This includes commodity traceability and product origin verification. By doing so, they can avoid penalties, contribute to the prevention of environmental degradation, and promote sustainable land use.

A step-by-step guide to selecting the right CSRD solution.

Screen around 100 CSRD solutions in minutes not weeks, and create an individualized list of solutions.

A laptop showing the CSRD solution finder guide.