EUDR Mythbusters: Separating Fact from Fiction in EU Deforestation Regulation

Introduction

The EU Deforestation Regulation (EUDR) represents one of the most significant sustainability regulations in global agricultural and forestry supply chains, aiming to minimize the EU’s contribution to global deforestation. Yet, as with any major regulatory change, misunderstandings and misconceptions have proliferated. Understanding what the regulation actually requires—versus what it’s rumored to require—is critical for efficient implementation.

This article cuts through the noise to address the most common myths about EUDR, providing clarity for operators across affected supply chains.

Myth #1: “EUDR will block all imports from high-risk countries”
The Reality: The EUDR does not impose blanket bans on products from any country. Instead, it establishes a due diligence framework requiring operators to demonstrate that their specific products are not linked to deforestation or forest degradation after December 31, 2020.

Products from high-risk countries can still enter the EU market if operators can provide the required evidence of compliance. The country benchmarking system (categorizing countries as low, standard, or high risk) affects the intensity of checks but does not determine market access for compliant products.

Myth #2: “Small farmers will be excluded from EU supply chains”
The Reality: The EUDR recognizes the challenges faced by smallholders and includes several provisions to support their inclusion:

Simplified due diligence options for small operators
A 24-month transition period following implementation
Technical assistance and capacity-building programs
Recognition of group certification approaches
While compliance will require adaptation, the regulation is designed to be inclusive rather than exclusionary.

Myth #3: “Geolocation requires expensive GPS equipment for every farmer”
The Reality: While the EUDR requires geolocation coordinates for production plots, it does not specify the technology used to collect this data. Multiple approaches are valid:

Polygon mapping can be done through various methods, including satellite imagery analysis
Coordinates can be collected at the group level for smallholder organizations
Existing cadastral data or land registration information can be leveraged
Progressive implementation is recognized as part of due diligence systems

Myth #4: “Products certified by sustainability schemes are automatically EUDR compliant”
The Reality: While the European Commission will assess existing certification schemes, no scheme currently provides automatic compliance with EUDR requirements. Certification can be a valuable component of a due diligence system but does not replace the need for:

Plot-level geolocation data
Deforestation risk assessment
Complete supply chain mapping
Documentation of legal compliance in the country of production

Myth #5: “EUDR compliance requires complete supply chain visibility immediately”
The Reality: The EUDR recognizes that building comprehensive traceability systems takes time. The regulation allows for:

Progressive implementation of due diligence systems
Proportionate approaches based on risk levels
Reasonable measures based on access to information
Collaboration between supply chain actors to establish traceability
The key requirement is demonstrating genuine effort toward comprehensive due diligence rather than perfect systems from day one.

Myth #6: “All EU companies in the supply chain must duplicate the same due diligence”
The Reality: The EUDR distinguishes between “operators” (those placing products on the EU market or exporting from it) and “traders” (those making products available on the market). While operators must conduct comprehensive due diligence, traders can rely on due diligence conducted earlier in the supply chain, provided they:

Maintain records of their suppliers and customers
Share relevant information with competent authorities when requested
Take additional measures if new information about non-compliance emerges

Myth #7: “EUDR will create insurmountable administrative burdens”
The Reality: While EUDR compliance does require systematic documentation, the regulation is designed to be risk-based and proportionate. Companies can:

Focus resources on higher-risk supply chains
Leverage existing data systems and certification programs
Collaborate with supply chain partners on information gathering
Utilize digital solutions to automate compliance processes

Myth #8: “The deforestation-free definition is too strict and unachievable”
The Reality: The EUDR uses internationally recognized definitions of forests and deforestation, aligned with FAO frameworks. The requirement is straightforward: products must not come from land that was deforested or degraded after December 31, 2020.

This cutoff date was chosen to prevent a rush of deforestation ahead of implementation and aligns with many existing zero-deforestation commitments. The definition does not prevent forest management or harvesting when conducted legally and sustainably.

Myth #9: “EUDR creates unfair advantages for domestic EU producers”
The Reality: The EUDR applies equally to imported products and those produced within the EU. European operators producing relevant commodities within the EU must follow the same due diligence requirements, including:

Collecting geolocation coordinates
Verifying legal production
Demonstrating deforestation-free status
Submitting due diligence statements

Myth #10: “There’s no guidance on how to implement EUDR requirements”
The Reality: The European Commission has developed and continues to expand implementation guidance, including:

Detailed guidance documents on the due diligence system
Country-specific information
Benchmarking methodology
Information system guidance
Stakeholder support resources
Additionally, industry associations and sustainability platforms are developing sector-specific implementation frameworks.

How TerraMD Addresses These EUDR Challenges
MergData’s TerraMD app was developed to help companies navigate EUDR compliance efficiently. The application addresses the reality behind each myth through targeted functionality:

Comprehensive Risk Assessment: TerraMD enables compliance in high-risk landscapes through plot-level verification rather than relying on country-level generalizations. The app’s risk assessment features help companies identify specific risks and appropriate mitigation measures, allowing continued market access from any origin where compliance can be documented.

Flexible Geolocation Options: TerraMD offers multiple approaches to generating the required geolocation data without expensive equipment. The polygon mapping feature allows field agents to walk farm boundaries or mark coordinates at key points.

Certification Integration: TerraMD complements existing certification programs by focusing on the EUDR-specific data elements that certification alone doesn’t provide. The app’s certification mapping features allow operators to leverage their current sustainability investments while filling compliance gaps.

Progressive Implementation Support: The modular approach of TerraMD allows companies to prioritize high-risk supply chains first, progressively extending traceability coverage. The configurable risk assessment module helps companies identify where to focus initial compliance efforts, supporting a phased approach to full implementation.

Administrative Efficiency: TerraMD transforms compliance from a manual paperwork exercise into an automated data flow. The due diligence statement generator automatically compiles collected data into the format required for submission to EU authorities, drastically reducing administrative overhead and error rates.

Historical Verification: The historical satellite monitoring integration enables verification against the crucial December 31, 2020 baseline. TerraMD automatically checks mapped production areas against historical imagery, providing evidence that plots were not recently deforested and flagging any high-risk locations.

Universal Application: TerraMD works equally well for both European and non-European production, enabling consistent documentation across global supply chains. The app’s flexibility adapts to different regulatory contexts while maintaining consistent documentation standards.

Regulatory Currency: TerraMD is continuously updated based on the latest EUDR guidance from the European Commission. Regular platform updates incorporate new clarifications, keeping compliance protocols current without requiring users to constantly monitor regulatory developments.

Conclusion: Beyond Myths to Implementation
As with any significant regulatory change, the journey from concept to implementation reveals the gap between perception and reality. The EUDR represents a transformative approach to addressing global deforestation through market mechanisms, creating both challenges and opportunities for supply chain actors.

By focusing on what the regulation actually requires rather than myths or exaggerations, companies can develop proportionate, effective compliance strategies. Purpose-built digital solutions like TerraMD play a crucial role in this transition, transforming theoretical requirements into practical, efficient systems that make compliance achievable across diverse supply chains.

The true test of EUDR will not be in its administrative requirements but in its environmental impact. By supporting genuinely deforestation-free supply chains through evidence-based verification, TerraMD helps companies contribute to meaningful environmental progress while securing their position in the evolving European market landscape.

To ensure your business is fully prepared for the EU Deforestation Regulation, moving beyond the myths and embracing practical, evidence-based solutions is crucial.

Click here to discover how TerraMD can help you efficiently navigate compliance, reduce administrative burden, and support your journey toward a deforestation-free supply chain.