EU Deforestation Regulation Challenges U.S. Businesses in Forest-Risk Supply Chains
The EU Deforestation Regulation (EUDR) is set to impact U.S. businesses involved in forest-risk supply chains by requiring products to be 'deforestation-free' to enter the EU market. According to Global Canopy's Forest 500 report, many companies are unprepared for these requirements, with one-third lacking deforestation commitments. The regulation, effective from the end of 2026, imposes fines for non-compliance, prompting some companies to enhance supply chain traceability. However, significant gaps remain, particularly in commodities like beef and leather.