In May 2025, the European Commission released the final risk classification of countries of origin under the EU Deforestation Regulation (EUDR). This classification affects due diligence requirements for businesses handling certain raw materials and products.
Overview of the new classification
The EUDR groups countries of origin into three categories – low, standard, and high risk – which determine the level of due diligence companies must carry out:
· Low risk: Includes all EU member states and some others. Simplified due diligence rules apply.
· Standard risk: Around 50 countries, such as Brazil, Indonesia, and Côte d’Ivoire. Companies must perform detailed risk assessments and document risk mitigation measures.
· High risk: Countries including Russia, Belarus, Myanmar, and North Korea. These require the most stringent transparency, documentation, and risk management processes.
Implications for businesses
The classification applies to companies that import, process, or export raw materials such as palm oil, beef, wood, cocoa, coffee, soy, and rubber. From 30 December 2025 (or 30 June 2026 for SMEs), products covered by the regulation can only be placed on the EU market or exported if they are proven to be deforestation-free as of 31 December 2020, have been produced in compliance with the laws of the country of origin, and meet all EUDR due diligence requirements. This framework will influence supply chain decisions, compliance processes, and documentation requirements in procurement, production, and sales.
Preparing operations for EUDR
According to the lawmakers, companies are advised to review their supply chains to determine the origin of raw materials and the corresponding risk classification, conduct thorough risk assessments for standard and high-risk countries, and update documentation processes to include geolocation data, deforestation verification, and risk assessments for regulatory review. They are also encouraged to ensure that supply chain partners are informed about EUDR requirements and to begin preparations early, as the scope of necessary adjustments will vary depending on the risk level of the countries involved.
Digitalization expert Christian Jung who has been active in the paper industry for almost 30 years concludes: “The new classification of risk countries is a key step in the implementation of the EUDR. Companies should take this development seriously and take timely measures to make their supply chains compliant and future-proof.” Questions on EUDR compliance? Contact Christian Jung on LinkedIn: https://www.linkedin.com/in/christian-jung-digital-production/
