Opinion: What Fashion Needs to Know Now About the Latest EUDR Updates

As the EU Deforestation Regulation (EUDR) moves closer to implementation, the fashion sector — deeply connected to forests through its sourcing of Man-Made Cellulosic Fibres (MMCF) and paper packaging — has a critical role to play in ensuring supply chains are designed to address deforestation and forest degradation, and are aligned with fast-evolving global expectations.

In April, the European Commission released clarifications to the regulation, including the introduction of a country-benchmarking system and a shift to annual due-diligence reporting. These updates aim to streamline implementation, balance ambition with feasibility, and give businesses greater certainty as they adapt.

For fashion brands, this clarity is welcome, but it’s also a call to action. The urgency of the climate and biodiversity crises hasn't lessened, and the EUDR's core requirement, traceability to the source, hasn't changed.

What’s New — and What It Means for Fashion

Companies will now submit one due-diligence statement per year, rather than for each shipment or batch. This reduces administrative lift — especially for those moving high volumes — and gives internal teams more time to focus on meaningful compliance, ensuring supply chains are genuinely deforestation-free.

The new country-benchmarking system classifies nations as low, standard, or high risk based on deforestation likelihood. While intended to concentrate due-diligence efforts where needed most, this shift comes with caveats. Few countries have been designated “high risk,” despite well-documented forest degradation across many regions.

Here’s the catch: Risk isn’t defined by borders. Forests don’t follow national lines, and neither do threats to their survival. A “low-risk” country can still contain biodiversity hotspots, governance gaps, or unsustainable land-use pressures. Forest-of-origin data remains critical, and brands must not conflate a national label with a guarantee.

The EUDR remains significant in recognizing what scientists have long stated: Primary forests are irreplaceable. Logging or converting them — even to plantations — undermines climate goals, threatens biodiversity, and is incompatible with limiting global warming to 1.5˚C.

Why This Matters for MMCF and Packaging Supply Chains

Paper- and paper-based packaging made from wood fibre — including cardboard boxes, hang tags, and paper sacks — fall squarely within the EUDR’s scope when sold as packaging. But regardless of whether a specific item meets the technical legal thresholds of the regulation, the bottom line remains: Every brand has a responsibility to know their supply chain and eliminate exposure to deforestation and forest degradation. Legal compliance alone won’t shield companies from reputational risk, supply disruptions, or evolving stakeholder expectations. That means going beyond check-the-box exercises and investing in meaningful, independent due diligence and traceability to ensure that the fibres in packaging and products aren’t costing the world its last standing forests.

It’s time for companies to engage their suppliers with the right questions, and to start prioritizing recycled and Next Gen fibre alternatives. These lower-carbon, circular options ease pressure on virgin forest fibre and contribute to a healthier, more resilient supply chain.

MMCF textiles aren’t yet among the seven commodities regulated under the EUDR, but their primary input, dissolving wood pulp, is. And while most MMCF production takes place outside the EU, the regulatory net is tightening. Future inclusion of these fibres in the EUDR is likely. Leading brands aren’t waiting — they’re preparing now to stay ahead.

At Canopy, we work with over 950 brands through our CanopyStyle and Pack4Good initiatives to eliminate climate- and biodiversity-critical forests from MMCF and packaging supply chains. And it’s working: Over half of the global MMCF market now ranks at the top of our Hot Button Report, showing strong traceability and adoption of lower-impact, Next Gen solutions.

Still, there’s work to do. Risk varies by region, and regulations will evolve over time. Brands, producers, and companies need nuanced data, plot-level geolocation, and chain-of-custody documentation. Transparent supplier relationships aren’t a bonus — they’re essential.

The payoff? A more resilient and future-fit supply chain, credibility with climate-conscious consumers, a head start on evolving regulations, and early access to the innovative, circular materials that are redefining the fashion industry.

The Opportunity in Staying Proactive

Regulatory delays or simplifications can tempt brands to hit pause. But make no mistake: The current EUDR phase is the floor, not the ceiling. Tighter enforcement and escalating investor expectations are on the horizon.

Fashion has the opportunity — and the responsibility — to lead.

By investing now in robust traceability systems, fashion brands can not only meet evolving regulatory requirements but also demonstrate climate and nature-conservation leadership, strengthen brand trust, future-proof their supply chains, and meet rising customer and investor expectations. That means sourcing with integrity, embracing circular, Next Gen alternatives, and collaborating across the value chain to ensure visibility from forest to final product.

Traceability is no longer a niche concern; it’s a core business expectation. For the fashion sector, that’s not a burden but an opportunity to shift the market shift toward transparency, circularity, and forest conservation.

Now is the time to move forward — with clarity, ambition, and the integrity these times demand.