Deforestation and forest degradation is happening at an alarming rate.  

In fact, between 1990-2020, 10% of the world's remaining forests were lost to deforestation.

And just to paint a picture for you - that’s an area bigger than the EU. 

Deforestation and its threat

It might not be a surprise to many of you, but deforestation is among one of the largest sources of CO2 emissions.

It has a massive negative impact on animals’ habitats as well as local communities. 

And the three major economic sectors: agriculture, construction, and food and drink – they all highly depend on nature. 

In the EU, we tend to consume a lot of goods such as cattle, cocoa, coffee, oil palm, soy and wood - all of which are big drivers to deforestation.

So we aren’t exactly helping to fix the problem. 

Well.. that is until now. 

In June 2023, the EU Deforestation-Free Regulation (EUDR) went into effect.

The aim of the Regulation

The aim of the regulation is to make sure that the products EU citizens buy, use, and consume have not contributed to deforestation and forest degradation globally.

And how can they make sure of that, you ask? 

Well, companies have to provide evidence and information on where the materials of their products come from.

And the companies placed in, or export from, the EU will also have to conduct strict due diligence to identify and assess the risk of deforestation in their supply chains.

Specifically, this means that a benchmarking system is created to assign the level of risk - either high, standard, or low - to countries in and outside the EU.

Inspections and controls of suppliers will depend on the level of risk.

By doing so, greenhouse gas emissions caused by our consumption and production of certain goods in the EU, will be reduced.

The regulation states that only products produced on land where deforestation or forest degradation have not happened after 31 December 2020 are allowed on the EU market or to be exported from the EU.

When will this affect your company? 

The regulation entered into force on June 29th of 2023. 

This means that operators and traders have 18 months, whereas SMEs have 24 months, from the above date to comply with the new regulation.

The EUDR will replace the EU Timber Regulation.

We know it can be tricky to keep up with compliance and due diligence. 

But nonetheless, it is still very important to stay updated with the legislation and regulations. 

If you need assistance, we offer a variety of compliance services - so do not hesitate to reach out for assistance and information on this subject.