top of page
  • Writer's pictureJibin

What is the EU Deforestation Regulation (EUDR)?

Updated: Feb 21




What is the EU Deforestation Regulation (EUDR)?

The European Union Deforestation Regulation (EUDR) stands as a crucial initiative aimed at addressing the pressing issues of deforestation and forest degradation, both recognized as primary contributors to the global climate and biodiversity crises. Given the pivotal role played by forests in climate regulation, the detrimental impacts of deforestation on the environment are manifold, encompassing soil erosion, flooding, diminished carbon storage, and the loss of habitats.

In effect since June 2023, the EUDR has supplanted the EU Timber Regulation, signifying a noteworthy initial stride in mitigating deforestation resulting from European consumption. This regulatory shift marks a significant move towards the protection of the world's forests for the well-being of future generations. For a more in-depth understanding of the EUDR, delve into its goals, expansive scope, and the meticulous due diligence process it entails by continuing to explore further.

What objectives does the EUDR aim to achieve?

The EUDR endeavors to guarantee that products entering the EU market are free from deforestation and adhere to relevant domestic legislation, spanning from human rights to environmental impact. It advocates for transparency and traceability in supply chains, facilitating consumers in making well-informed choices about their purchases.

As outlined by the European Commission, the EUDR pursues three primary objectives:

  1. Prevent the availability of products contributing to global deforestation and forest degradation in the EU market.

  2. Preserve forests acting as carbon sinks, thus reducing the EU's carbon footprint by mitigating emissions associated with the production and consumption of specific commodities.

  3. Address deforestation and forest degradation arising from agricultural expansion for the production of certain commodities.

What is the scope of the EUDR?

The EUDR is applicable to importers of products into the EU market, encompassing operators and traders, with the exemption of Small and Medium-sized Enterprises (SMEs) till June 30th, 2025. Unlike the original EU Timber Regulation, this regulation broadens the commodity criteria, specifically targeting additional commodities recognized for their significant role in global deforestation and forest degradation, driven by their spatial demands and the requisite expansion of agricultural activities. Presently, the EUDR encompasses seven commodities:

  1. Timber

  2. Beef

  3. Palm oil

  4. Soy

  5. Coffee

  6. Cocoa

  7. Rubber

Moreover, certain derivatives of these commodities, including but not limited to leather, chocolate, and furniture, are also within the regulatory purview. Stringent criteria and requirements are in place for these commodities and their derivatives, ensuring that products consumed and used within the EU are sourced without contributing to environmental destruction.

How does the EUDR due diligence process work?

The EU Deforestation Regulation imposes specific criteria that companies falling under its purview must consider. This includes:

  1. Companies actively engaged in importing or exporting products and their derivatives, which encompass cattle, palm oil, soy, cocoa, rubber, coffee, and timber, into the EU.

  2. Assessment of the operational scale and size of companies within the supply chain.

Following the eligibility check, companies are required to implement measures to ensure compliance with the EUDR by undertaking the following steps:

  • Formulating a due diligence report incorporating a risk management system and corresponding mitigation strategies.

  • Providing information on the origin and legal aspects of the products, including geolocation coordinates of their production.

  • Prohibiting the introduction of products from areas susceptible to deforestation and forest degradation into the EU market.

  • Regularly evaluating, monitoring, and adjusting the due diligence reporting system to accommodate evolving risks and regulatory requirements.

How is compliance with the EU Deforestation Regulation ensured?

Companies falling under the regulation's purview are subject to monitoring by enforcement authorities, with accountability for noncompliance. As part of the due diligence process outlined in the regulation, companies are obligated to submit a statement containing crucial information for compliance monitoring, including the geographical coordinates of the origin of commodities. This rigorous traceability mechanism empowers enforcement authorities to authenticate the sustainability of sourcing.

While the EUDR is already in effect, operators and traders have until December 30th, 2024, to implement the new rules at all levels to their affected products and imported commodities and adhere to the due diligence process. Micro and small enterprises are granted an extended grace period and are not obligated to comply until June 30th, 2025.

How does SuperVision help you?

Adhering to a fresh set of regulations and a due diligence process imposes additional challenges on compliance teams already grappling with heavy workloads. Companies encounter various new hurdles during the implementation period of the regulation, ranging from establishing a due diligence process with a focus on deforestation to tracing commodities back to their origin and evaluating associated risks. Moreover, with the escalating adverse effects of deforestation, there is the potential for the inclusion of additional commodities within the scope of the EUDR. This implies that companies will need to allocate even more resources to ensure compliance with evolving requirements.

Partnering with SuperVision, allows your team to streamline the due diligence process and refocus internal resources on other parts of your business. Our comprehensive SuperVision EUDR Solution facilitates product tracing, risk assessments, and document collection and management through powerful compliance software. Connect with us to have confidence that the products you place on the EU market are deforestation-free.

Comments


bottom of page