Daily Coffee Report 6/5/26
Daily coffee report
StoneX Coffee Team
- Coffee
Commission Publishes Simplification Review of EU Deforestation Regulation
By: Alexis Rubinstein, Managing Editor - Coffee Network
CoffeeNetwork (New York) - Today, the Commission published a report on the simplification of the revised EU Deforestation Regulation (EUDR) and a set of further measures for a smooth and effective implementation following the agreement of co-legislators last December. These measures will provide additional clarity to economic operators, Member States, third countries, and other stakeholders, while guaranteeing legal stability and predictability. With today's package, the Commission delivers on its commitment to the European Parliament and the Council to carry out a simplification review of the revised Regulation and prepares for the entry into application of the regulation by end of this year.
The measures include a report to the European Parliament and the Council, an updated guidance document and Frequently Asked Questions, and a draft delegated act on the product scope of the EUDR. In addition, the Commission is presenting an updated implementing act on the Information System to Member States.
The report to the European Parliament and Council describes the simplification measures that have been implemented since the entry into force of the EUDR in June 2023, as well as those introduced in today's package. These measures together will lead to a substantial reduction in administrative burden. They are expected to reduce annual compliance costs for companies subject to EUDR obligations by about 75%, compared to the original EUDR. It also presents planned trade facilitation tools, such as repositories of legislation of producing countries and certification schemes for commodities under the EUDR, to facilitate risk assessment and due diligence. In addition, the report shows that the EUDR is already contributing to structural changes in global supply chains, with increased investment in traceability and more transparency, thereby supporting more sustainable and competitive production practices.
The updated guidance document and Frequently Asked Questions address the topics most frequently raised by stakeholders. Both documents provide further clarification on obligations for the downstream supply chain, and the very simplified specific regime applicable to micro and small primary operators. Explanations are provided on issues such as e-commerce and geolocation modalities. The updated EUDR supply chain infographics also provide user-friendly practical examples illustrating the various supply chain scenarios. These documents have been extensively discussed with Member States for a harmonised enforcement of the law across the EU.
The draft delegated act incorporates targeted amendments to the EUDR product scope. It updates the draft delegated act of last year and incorporates feedback from stakeholders during the consultation phase. The draft includes proposed additions of certain downstream products, such as soluble coffee and certain palm oil derivatives. It also proposes several exclusions of the scope, such as leather or retreaded tyres, as well as exemptions such as product samples, certain packing materials, used and second-hand products, and waste. The draft Delegated Act is open for public feedback until 1 June 2026.
In parallel, the Commission is updating the Information System to reflect the changes introduced by the revised Regulation and enhance the user friendliness of the system. The updated draft implementing act on the Information System will now be submitted to Member States before its adoption. Main developments will include a simplified declaration form for micro and small primary operators, aligned with the existing due diligence statement format; updated specifications for the automated application interfaces; a contingency plan for unplanned unavailability; and a voluntary grouping feature introduced in response to requests from the business sector.
The Commission is also working closely with Member States to make use of available information from national databases to be directly reflected in the Information System in order to support companies fulfilling their EUDR obligations. This is expected to further reduce the burden on micro and small primary operators.
The Commission is focused on facilitating implementation, and ensuring a successful entry into application of the law by 30 December 2026.
The EU Deforestation Regulation aims to ensure that key goods placed on the EU market do not contribute to deforestation and forest degradation, both within the EU and globally as they are among the most significant contributors to climate change and biodiversity loss. The main driver of deforestation is the expansion of agricultural land linked to the production of seven commodities covered by the regulation – cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products.
Under the Regulation, any operator or trader who places these commodities on the EU market, or exports from it, must be able to prove that the products do not originate from recently deforested land or have contributed to forest degradation.
In December 2025, the European Parliament and Council adopted the revised text of the EUDR, providing the legal stability needed for successful implementation. The Regulation will apply from 30 December 2026 for large and medium companies, as well as for micro and small enterprises from the timber sector, and from 30 June 2027 for other micro and small enterprises.
Even before entering into application, the Regulation has already prompted positive changes in both the public and private sectors, bringing greater transparency to supply chains and opening new market opportunities for deforestation-free products.
Alexis Rubinstein
- Coffee
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