# EU's Deforestation Regulation poses risks for companies and investors | IFR

> The EU Deforestation Regulation entered into force on June 29, 2023, and bans entry of forest-risk commodities such as palm oil, beef, coffee, cocoa, soya, wood and rubber if linked to deforestation after December 31, 2020. A Jefferies study says it will add reporting, risk assessment and compliance costs for importers and create financial risks for investors.

- Date: 2023-09-01 · published 2023-09-01T12:00:00.000Z
- Category: policy · region EU · magnitude low
- Page: https://feedsoft.ai/events/34124-eu-s-deforestation-regulation-poses-risks-for-companies-and-investors-ifr
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Compliance costs and possible shifts in trade flows could widen regional price spreads for palm oil and soy destined for Europe, though the near-term price effect is limited while enforcement starts in late 2024.

## Read by commodity

- SOY: neutral
- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2017-10-24 | [The Chain: EU Proposal on Deforestation-Linked Products Poses Risks for Companies, Investors - Chain Reaction Research](https://feedsoft.ai/events/68515-the-chain-eu-proposal-on-deforestation-linked-products-poses-risks-for.md) | +0.3% | -0.0% |
| PALMOIL | 2024-12-04 | [The EU Deforestation Regulation: an update and what it means for companies](https://feedsoft.ai/events/26993-the-eu-deforestation-regulation-an-update-and-what-it-means-for-companies.md) | -0.7% | -14.6% |
| PALMOIL | 2025-11-26 | [EU deforestation regulation forces companies to act - KPMG-Law](https://feedsoft.ai/events/21987-eu-deforestation-regulation-forces-companies-to-act-kpmg-law.md) | +1.9% | +0.1% |
| PALMOIL | 2025-04-16 | [EU eases deforestation law reporting for companies](https://feedsoft.ai/events/25148-eu-eases-deforestation-law-reporting-for-companies.md) | -0.4% | -3.4% |
| PALMOIL | 2025-05-06 | [The EU Deforestation Regulation (EUDR) - key takeaways for companies after postponement](https://feedsoft.ai/events/24692-the-eu-deforestation-regulation-eudr-key-takeaways-for-companies-after.md) | -2.3% | +1.7% |
| SOY | 2017-10-24 | [The Chain: EU Proposal on Deforestation-Linked Products Poses Risks for Companies, Investors - Chain Reaction Research](https://feedsoft.ai/events/68515-the-chain-eu-proposal-on-deforestation-linked-products-poses-risks-for.md) | -0.8% | +0.9% |
| SOY | 2024-12-04 | [The EU Deforestation Regulation: an update and what it means for companies](https://feedsoft.ai/events/26993-the-eu-deforestation-regulation-an-update-and-what-it-means-for-companies.md) | +0.3% | +0.8% |
| SOY | 2025-11-26 | [EU deforestation regulation forces companies to act - KPMG-Law](https://feedsoft.ai/events/21987-eu-deforestation-regulation-forces-companies-to-act-kpmg-law.md) | -0.8% | -5.5% |

## Sources

- ifre.com: https://www.ifre.com/esg/484111/eus-deforestation-regulation-poses-risks-for-companies-and-investors

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.