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EU Commission's Intent to Delay EUDR Implementation by One Year

EU Commission's Intent to Delay EUDR Implementation by One Year

On October 2, the EU Commission announced its intention to delay the implementation of the European Union Deforestation Regulation (EUDR) by one year. However, this proposal still needs approval from both the European Parliament and the Council.  

If passed, the new timeline would make the law applicable on December 30, 2025, for large companies and June 30, 2026, for small enterprises. However, if the delay is rejected, then the implementation date will remain December 30, 2024. Although all the necessary implementation tools are technically ready, the additional 12 months can serve as a phasing-in period to ensure proper and effective implementation. 

Let's Recap... 

The EUDR is a significant piece of legislation aimed at reducing deforestation and forest degradation linked to global forestry and agricultural practices. It builds upon the 2010 EU Timber Regulation (EUTR), which was designed to reduce illegal logging and trade. 

Under the EUDR, business operators in the EU dealing with specific commodities will have to comply with stringent new requirements. Operators include any organization that: 

  • Makes these commodities available in the EU marketplace 
  • Exports these commodities from the EU to other countries 

The pulp, paper, pellet, and solid wood industries collectively generate billions of dollars annually for the EU economy. Non-compliance with the EUDR could jeopardize significant portions of these revenues, impacting individual companies and the broader economic landscape.  

There have been numerous objections and concerns regarding the EUDR. For example, China has voiced opposition due to concerns about sharing geolocation data, which is seen as a security risk and complicates compliance for Chinese exporters.  

More recently, the Confederation of European Paper Industries (Cepi), along with 27 other European primary producers and various industries, issued a joint statement advocating for the delay of the EUDR. "Despite our efforts to be prepared for the EUDR's implementation and repeated warnings over the past year, we are still missing adequate responses to our calls for clarity for a workable, harmonised implementation of the regulation," the statement declared. 

So, What Now? 

Whether the EUDR is delayed or goes ahead as planned, businesses need to start preparing for its eventual implementation. Adapting to the new EUDR requirements can be challenging, particularly for companies with complex supply chains.  

Many have speculated whether companies with more intricate supply chains might be exempt from the EUDR’s demands. However, the European Commission has provided clarity on this matter. When addressing product-specific risks in the “Annex to the Communication to the Commission,” it is stated that, “There are considerable differences in how the various relevant products listed in EUDR Annex I are produced, which will impact the risk of non-compliance. For example, some products contain raw material produced in hundreds of separate geolocations or undergo substantial chemical or physical procedures during the manufacturing.”  

The inevitability of the EUDR’s implementation cannot be overstated. Whether it comes into effect sooner or later, the need for readiness is paramount. Companies must prioritize reviewing their supply chain processes and ensuring compliance methods.  

The regulation demands granular details with high levels of transparency and traceability. However, with the right tools and support, these challenges can be tackled effectively.  

Streamlining EUDR Compliance with Forest Trackt for Wood-Based Commodities 

ResourceWise’s solution, Forest Trackt, is designed for businesses trading wood-based commodities into European markets. It equips companies to effectively track the source of their products from harvest to the end product, ensuring they are not contributing to deforestation or forest degradation. 

The ForestLogger mobile app streamlines the geolocation data acquisition process, enabling operators to submit data automatically and effortlessly, even from remote locations. With Forest Trackt, the traceability of all raw materials used in the operators’ end products is ensured, leveraging ResourceWise’s repository of datasets and analytical tools for the forest supply chain, SilvaStat360, to secure master data. 

Forest Trackt integrates seamlessly with Orbis's VeriForest platform for predictive risk assessment, real-time change detection, and unmatched forest verification capabilities, ensuring operations are compliant with EUDR standards. 

Forest Trackt offers real-time alerts for compliance issues, robust security features to protect data, customizable reporting to meet business’ needs, and a centralized database for simplifying data management and improving operational efficiency. 

This EUDR compliance solution assists in the seamless transfer of data from the centralized database to the customs window in an EU country, maintaining uninterrupted and compliant operations without extensive administrative overhead. 

Solving EUDR Compliance Challenges 

According to an article recently published by FoodNavigator Europe, the primary challenges associated with EUDR compliance are gathering geolocation data, implementing a system to trace commodities through the supply chain, and providing documentation to demonstrate compliance. Below, we discuss these challenges and how Forest Trackt effectively addresses them. 

Challenge: Geolocation Data for the Land Producing Commodities 

One of the major challenges businesses face in meeting EUDR requirements is collecting precise geolocation data for commodities sourced from land. Ensuring accurate and consistent data, particularly from remote or hard-to-access areas, can be time-consuming and complex, making compliance more difficult. 

Solution: Automated Geo-Location Data Acquisition 

The ForestLogger mobile app, part of the Forest Trackt solution, captures precise geolocation data, even in remote areas without a cellular connection. This ensures companies can meet EUDR’s geolocation requirements efficiently, without manual data collection burdens.

Challenge: Tracking Commodities Across the Entire Supply Chain

Another challenge posed by the EUDR is ensuring full traceability of commodities throughout complex supply chains. As materials pass through multiple stages—such as processing, manufacturing, and distribution—it becomes difficult to track their origin and ensure compliance with deforestation-free requirements. Traditional tracking methods, often paper-based, are prone to errors and inefficiencies.  

The EUDR’s strict requirements demand a more reliable solution, like tokenization, to provide a clear, digital record of a product’s journey from source to market, ensuring traceability and compliance at every step. 

Solution: End-to-End Traceability 

Forest Trackt provides a tokenization system that tracks wood-based raw materials from the forest through the supply chain. This ensures full traceability and avoids the risk of product contamination with non-EUDR compliant materials, solving the many-to-many problem of processing residuals. 

Challenge: Providing Documentation to Demonstrate EUDR Compliance

The final challenge addressed by FoodNavigator Europe is the extensive documentation required to prove that commodities are deforestation-free and sourced in accordance with local laws. Companies must gather and provide detailed information about the origin, processing, and movement of their products across the supply chain. This process can be time-consuming and prone to errors, especially when relying on manual or fragmented systems. Ensuring that all data is accurate, consistent, and easily accessible for audits or regulatory checks adds further complexity to compliance efforts. 

Solution: Efficient Data Centralization and Delivery 

Forest Trackt streamlines the collection and transfer of data by centralizing all compliance information and securely transmitting it directly to the EU, reducing the time and manual effort involved in compliance documentation. 

Achieve EUDR Compliance with Forest Trackt 

Compliance with the EUDR is not just a regulatory requirement but a strategic initiative that reflects a commitment to sustainability and responsible business practices. 

With solutions like Forest Trackt, businesses can overcome the challenges associated with EUDR compliance, ensuring that they remain competitive in the EU market. Start preparing today to ensure that your operations align with the EUDR's stringent standards and contribute to a more sustainable future. 

 Next week, we will delve into key FAQs released by the European Commission regarding the EUDR and discuss them on our blog. Be sure to subscribe to our email updates to stay informed on this evolving situation. 

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