To help forests, the EUDR
The Deforestation Directive, known as the EUDR (European Union Deforestation Regulation), is one of the most important tools in the fight against global forest degradation. It was enacted on 29 June 2023 and aims to reduce deforestation and ecosystem degradation that result from global production and consumption processes. The introduction of this directive significantly affects the operation of companies importing goods into the EU, while bringing important environmental benefits.
What does the EUDR cover?
The EUDR relates to the import and sale on the EU market of commodities that are considered ‘high-risk’ products in terms of deforestation. These include soya, palm oil, coffee, cocoa, wood, rubber or products of bovine origin (hides, meat). The main aim of the regulation is to ensure that these products do not contribute to deforestation or forest degradation in the areas from which they originate. The directive specifies that companies must prove that their products have not been produced in deforested areas after 31 December 2020. In this way, the EU wants to reduce its negative impact on global forests, which are crucial for climate stability and biodiversity.
Changes for companies
The introduction of the EUDR involves major changes for companies importing and selling goods within the European Union. Companies will be required to implement new procedures to control and monitor their supply chains. The most important requirements are:
Verification of geolocation - companies must provide details of the exact geographical location from where raw materials used in production originate. They may be required to use satellite technology and tools to monitor changes in land use.
Raw material traceability - companies should trace the entire path of a product from source to final consumer to ensure that it does not come from deforested areas.
Reporting - companies will be required to regularly report on the origin of their products and use deforestation risk assessment tools.
Adhering to the new regulations means investing in technology and adapting production processes. It also implies the need to establish close cooperation with raw material suppliers to ensure full transparency in the supply chain.
Environmental benefits
The EUDR has enormous environmental benefits. Any action that reduces the rate of deforestation is most relevant in the fight against climate change. Forests play a fundamental role in absorbing carbon dioxide from the atmosphere, which helps to reduce the greenhouse effect. In addition, forests provide a habitat for many plant and animal species and their protection has a direct impact on the conservation of global biodiversity. Reducing deforestation will also have an impact on water conservation, as forests regulate hydrological cycles, preventing soil erosion and flooding. Improving the protection of tropical forests, which are particularly vulnerable to deforestation, will contribute to the stabilisation of local and global ecosystems.
Penalties for breaches of the EUDR
Violations of the EUDR Directive come with severe consequences. Companies that do not comply with the new regulations may face financial penalties. Fines can be up to 4% of a company's annual turnover, which poses a serious financial risk for many companies. In addition, EU member states are required to introduce national sanctions for violations of the EUDR, which can lead to additional administrative penalties.
From when will the EUDR Directive apply?
The EUDR Directive was formally adopted by the European Union on 16 May 2023. The legislation will take effect in stages:
From 30 December 2024 - operators will have to comply with due diligence requirements when importing, exporting or marketing products that may contribute to deforestation, such as soya, palm oil, coffee, wood, cocoa, beef and rubber. This also includes derived products such as chocolate and furniture.
From 30 June 2025 - the new regulations will include small businesses, which will also have to comply with the new requirements.
The aim of the EUDR is to prevent products from areas of illegal deforestation or forest degradation from entering the EU market after 31 December 2020.
Summary
The EUDR is a milestone in the fight against global deforestation and forest degradation. It introduces strict new rules for companies importing goods into the European Union, forcing them to be more transparent and accountable for their supply chains. While this means challenges for companies, in the long term it will benefit not only the environment, but also the companies themselves, who will be seen as more sustainable and socially responsible. Above all, however, the directive contributes to the protection of forests, which are crucial for the survival of our planet and future generations.