Following the release of the new simplification package for the EU Deforestation Regulation (EUDR) on 4 May 2026, the European Commission conducted a briefing session to outline the key updates and proposed changes during the 41st meeting of the Multi-Stakeholder Platform on Protecting and Restoring the World’s Forests on 8 May 2026.
The package includes a simplification review report, an updated Guidance Document, revised Frequently Asked Questions, and a draft Delegated Act proposing changes to Annex I of the Regulation. This package is intended to provide further clarity to businesses, EU Member States, competent authorities and international stakeholders ahead of the EUDR application at the end of 2026.
According to the Commission’s simplification review report, the cumulative simplification measures are expected to reduce annual compliance costs for companies subject to EUDR obligations by about 75%. These measures include clearer guidance for downstream operators and traders, simplified procedures for micro and small primary operators, updates to the EU Information System and further clarification on legality and traceability requirements.
For the Malaysian palm oil industry, two points are most important:
- Malaysia is mentioned positively in relation to its upgraded national sustainability standards and integrated traceability systems, which strengthen Malaysia’s position as the Commission develops repositories of producer-country legislation and certification schemes.
- The draft Delegated Act proposes to add more palm-based downstream products to the EUDR product scope, meaning affected exporters and manufacturers may face additional information requests from EU buyers.
EU Plans New Repositories to Support EUDR Compliance: What It Means for Malaysia
For the Malaysian palm oil industry, one of the most significant developments is the establishment of repositories of producer-country legislation and certification schemes before the EUDR enters into application, subject to finalisation by the Commission.
These repositories are expected to support companies and competent authorities in assessing legality and sustainability requirements under the EUDR. The repository on producer-country legislation is expected to help stakeholders identify relevant laws applicable in countries of production, while the repository on certification and third-party verification schemes will support stakeholders in facilitating compliance.
This development is particularly important for Malaysia, as it is one of the few producing countries specifically mentioned in the Commission’s simplification review report. The report recognises that Malaysia has upgraded national sustainability standards for palm oil, rubber and timber and is developing integrated traceability systems aligned with EUDR information requirements. This reflects Malaysia’s continued progress in strengthening national sustainability and traceability systems, including the Malaysian Sustainable Palm Oil (MSPO) certification scheme.
More Palm-Based Products Proposed Under EUDR Scope
Another key development is the draft Delegated Act’s proposal to expand the EUDR product scope. This includes the inclusion of selected palm-based products used in the oleochemical supply chain and certain soap products made with palm oil. If adopted, the proposed changes may extend EUDR-related requirements beyond crude palm oil, refined palm oil, palm kernel oil and other palm-based derivatives and fractions already listed in Annex I.
The draft Delegated Act also clarifies that EUDR applies to oil palm of the Elaeis species, including Elaeis guineensis. It does not apply to babassu oil or vegetable oils from other palm tree species.
Malaysian refiners, oleochemical producers, soap manufacturers, exporters and downstream palm-based manufacturers may therefore face additional requests from EU buyers for traceability, geolocation, legality and supply chain information related to the proposed additional products.
Industry Feedback Needed on Proposed Scope Expansion
The Malaysian Palm Oil Council (MPOC) cautions that the proposed inclusion of new palm-based downstream products must be assessed carefully. The final scope should be practical, proportionate and reflective of the realities of the Malaysian palm oil supply chain, without adding unnecessary compliance burden on producing countries.
We urge the Malaysian palm oil industry stakeholders affected by the proposed changes to voice their concerns to the Commission through its public consultation by 1 June 2026 (midnight Brussels time).
For full details of the Commission’s announcement on the simplification package and its related documents, please click the links below:
- European Commission press release: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_941
- European Commission EUDR Simplification Review Report: https://environment.ec.europa.eu/publications/report-european-parliament-and-council-simplification-review-eudr_en
- Updated EUDR Guidance Document:https://green-forum.ec.europa.eu/publications/guidance-document-regulation-eu-20231115-deforestation-free-products_en
- Updated EUDR Frequently Asked Questions: https://environment.ec.europa.eu/publications/faq-eudr-implementation_en
- Draft Delegated Act on EUDR Product Scope (for public consultation): https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/18053-Deforestation-proposal-to-amend-and-simplify-the-rules-and-make-technical-fixes-to-Annex-I_en
