Wednesday, September 10, 2025
The EU Deforestation Regulation (EUDR) is facing growing opposition in Germany as groups representing the mechanical engineering and wood packaging sectors caution that the rule could overburden businesses with onerous compliance requirements and excessive bureaucracy. The European Union’s Deforestation Regulation (EUDR), set to take effect on December 30, 2025, has sparked significant concern within Germany’s woodworking industry. Industry leaders argue that the law’s stringent requirements pose substantial challenges to compliance and could disrupt established supply chains.
Understanding the EUDR and its implications
The EUDR mandates that companies placing certain commodities—such as wood, cocoa, coffee, soy, palm oil, rubber, and cattle products—on the EU market must ensure these goods are not sourced from land deforested after December 31, 2020. This includes proving that products comply with relevant legislation in the country of production and providing detailed due diligence documentation, including geolocation data of production sites. While the regulation aims to combat global deforestation and forest degradation, it has raised concerns among German woodworking industry stakeholders about the feasibility of meeting these requirements.
Industry concerns
The German Mechanical Engineering Industry Association (VDMA), representing over 3,600 companies across Europe, has criticised the EUDR as “bureaucratic madness.” The VDMA highlights that the regulation’s complexity could severely disrupt supply chains and harm European industry. They argue that ensuring full traceability is technically and logistically impossible for many firms, especially small and mid-sized ones operating in global supply chains.
In response, the VDMA has called for a two-year postponement of the EUDR’s implementation and proposed several revisions to ease the compliance burden. These include limiting due diligence obligations to first distributors, introducing exemptions for small deliveries and low raw material content, and classifying certain countries as “safe countries of origin” to simplify compliance procedures.
The woodworking sector, encompassing sawmills, furniture manufacturers, and woodworking machinery producers, relies heavily on a steady supply of timber and related materials. The EUDR’s stringent traceability requirements could lead to significant disruptions in these supply chains. For instance, companies may face challenges in verifying the origin of materials used in machinery components, such as rubber seals or leather parts, which are subject to the same traceability standards as the primary commodities. Moreover, the regulation’s broad scope, covering both direct and indirect suppliers, could impose substantial administrative burdens on companies, potentially diverting resources from core business operations and innovation.
Government response
In light of these concerns, German Chancellor Olaf Scholz has advocated for a “zero-risk” category within the EUDR to ease compliance for companies sourcing from countries with robust environmental regulations. This proposal aims to reduce the regulatory burden on businesses while maintaining the law’s environmental objectives. Additionally, the European Commission has acknowledged the industry’s concerns and, in April 2025, eased reporting requirements under the EUDR. Companies are now required to submit a single annual due diligence statement, rather than reporting for each shipment or batch, to reduce administrative burdens.
As the implementation date for the EUDR approaches, the German woodworking industry continues to advocate for revisions to the regulation to ensure its effectiveness without compromising the viability of European businesses. Ongoing dialogue between industry stakeholders and policymakers will be crucial in balancing environmental goals with economic realities.
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Tags: EU Deforestation Regulation, EU environmental laws, EUDR compliance, German woodworking industry, sustainable forestry
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