Environmental law and regulation is not always easy to understand. In a new series of short articles, Enviro InSSites, regulatory specialists Ian Anderson and Emma Reilly examine key environmental law developments and what they mean for your business.

What are deforestation regulations?

From 30 December 2026, the EU Deforestation Regulation (EUDR) will apply. The aim of EUDR is to ensure that certain products traded and consumed in the EU do not contribute to global deforestation.

Key points are:

• Enhanced due diligence requirements will apply to certain imported goods to prove they are deforestation free.
• Compliance deadlines will vary by business size, with smaller businesses needing to comply from 30 June 2027 for all non-timber products.
• Extent of due diligence will depend on country of origin.
• Obligations will differ depending on the nature of the business and its position in the supply chain.

The UK Government recently announced that it aims to introduce its own deforestation regulations by expanding the Environment Act 2021, alongside legislation that will strengthen the UK Timber Regulation (UKTR). British businesses with an annual turnover of over £1 million will have to carry out due diligence and hold proof of ongoing compliance to prove that illegal deforestation is not present in their supply chains. It is expected that legislation to implement this regime in Great Britain should be delivered in 2027.

The proposed turnover threshold is low. Many SMEs who currently have not considered voluntary due diligence on deforestation will need to comply.

What are the goods?

The EUDR will apply to wood, rubber, palm oil, soy, beef, coffee, cacao and particular products which derive from these goods including chocolate and furniture. The UK Government has confirmed its regulations will apply to the same goods.

Northern Ireland

EUDR will apply in Northern Ireland to ensure it still has access to the single market.

The Government is aiming for limited divergence between the two regimes, including the information that businesses need to hold. However, the EUDR is broader in scope than the approach currently proposed by the UK Government, which may cause complications for businesses operating in both markets.

Why should I care about this now?

If your business operates within the EU and Northern Ireland, or contributes to a supply chain that does, you should ensure that it will be capable of being compliant with the rules by the appropriate deadline.

Businesses with a turnover of over £1 million who operate solely in Great Britain should consider whether they need to prepare for the UK Government’s regulations which are expected to become law in 2027.

If you have any questions or would like more information, we’re here to help. Get in touch with Emma Reilly on EmmaReilly@schofieldsweeney.co.uk or Ian Anderson on IanAnderson@schofieldsweeney.co.uk.