The EU Deforestation Regulation (EUDR) represents a significant step forward in the global fight against deforestation. As deforestation remains a critical driver of climate change and biodiversity loss, this regulation aims to curb the EU’s contribution to these issues.
This blog aims to inform businesses about the EUDR, its impact on supply chains, and how companies can prepare for compliance.
What is the EUDR?
The EU Deforestation Regulation is a legislative measure designed to prevent deforestation linked to the production of specific commodities. Its main objective is to ensure that products placed on the EU market are not associated with deforestation or forest degradation. The commodities covered by the regulation include palm oil, cattle, soy, coffee, cocoa, timber, and rubber, and derived products such as beef, furniture, and chocolate.
The EUDR replaces the EU Timber Regulation, which came into force in March 2013 and requires businesses that first place timber on the EU market to implement a due diligence system to assess and mitigate the risk of illegal logging.
Key dates for implementation
The regulation will take effect at the end of 2025, so businesses will need to be aware of key implementation dates:
- 30 December 2025: The EUDR law will become applicable for large and medium-sized companies.
- 30 June 2026: Small and micro companies will have a longer adaptation period and will need to comply with regulations 6 months later than larger businesses.
Pilot testing phase
The pilot testing phase for the Deforestation Information System began in December 2023, and ran until January 2024.
This phase included various stakeholders and aimed to provide feedback to ensure the system is user-friendly in facilitating the submission and processing of due diligence statements.
Key requirements of the EUDR
Unlike the EUTR, which only applied to the initial company placing timber and timber products on the EU market, the EUDR covers the entire value chain. All operators and traders must trace their supplies, perform due diligence, and conduct a risk analysis to ensure their products are deforestation-free. If risks are identified, they must take necessary measures to mitigate them before placing the products on the market.
Due diligence
Businesses must perform strict due diligence to ensure their products are deforestation-free and comply with local laws. This includes verifying that the products have not been produced on land subject to deforestation after December 31, 2020.
Supply chain transparency
Transparency is crucial under the EUDR. Companies must maintain detailed supplier records, including geolocation data, to prove the origins of their products back to source. This information helps authorities verify compliance and ensures transparency throughout the supply chain.
Country benchmarking
As part of the implementation process, the EU Commission is expected to present a country benchmarking methodology framework by 30 June 2025.
The EUDR employs a risk classification system for countries, categorising them as low, standard, or high risk based on their deforestation patterns. This classification affects the level of due diligence required, with products from high-risk countries subject to more stringent checks.
Impact of the EUDR on Supply Chains
Compliance
To comply with the EUDR, businesses need to:
- Adapt supply chain practices to ensure all products containing commodities covered by the EUDR are deforestation-free
- Implement robust documentation processes to maintain transparency
- Regularly update due diligence procedures in line with the latest regulations and risk assessments
Challenges and opportunities
Implementing the EUDR may present challenges, such as increased operational costs and the need for enhanced supply chain transparency. However, it also offers opportunities, including meeting the growing demand for sustainably sourced products and gaining a competitive edge in the market.
How Authenticate can help
Supply chain transparency software
Authenticate offers comprehensive supply chain software designed to help businesses meet EUDR requirements.
Our scalable solutions facilitate due diligence, transparency and compliance with local laws, ensuring that your products are deforestation-free.
From mapping supplier geolocation and collecting land registry certificates using our document management solution, to assessing and analysing risk with digital audits and interactive dashboards, our technology is on hand to get your business EUDR ready.
Our platform also uses trusted data overlays from the Global Forest Watch and a feed to the FSC, allowing businesses to access reliable, deforestation insight real-time.
Support services
In addition to software solutions, Authenticate provides support services to help time-poor businesses navigate the EUDR. Our knowledgeable team can assist with implementing necessary changes to your supply chain practices, ensuring you stay compliant with the new regulations.
Stay EUDR compliant with Authenticate
The EUDR is crucial for promoting sustainable practices and protecting global forests. Businesses must start preparing now to comply with the regulations. Authenticate is here to help you navigate these changes and ensure your supply chain remains deforestation-free.
Contact us today for expert guidance and explore our tools to ensure your business stays compliant and sustainable.