The EU’s Deforestation Regulation (EUDR) is set to go into effect on 30 December 2024. EUDR aims to prevent and mitigate the impact of deforestation and forest degradation associated with certain commodities placed on the EU market. Source: Timberbiz
Since wood is one of the targeted commodities, all forest products companies exporting to the EU will be required to prove that the goods’ production did not contribute to the deforestation of primary forests.
The US pulp, paper, pellet, and solid wood industries collectively contribute billions of dollars annually to the EU economy. The pulp and paper industry contributes approximately $2.4 billion, pellet manufacturers roughly $1.5 billion, and the solid wood industry roughly $500-800 million. Non-compliance with EUDR will jeopardize significant portions of these revenues, affecting individual companies and broader economic landscapes.
Many companies are concerned about their ability to meet compliance requirements. ResourceWise CEO Pete Stewart stated, “Population growth and climate change call for bans on single-use plastics, and incentives for renewable energy and carbon storage are increasing pressure on global wood supply. Consumer brands using paper packaging are more aware that their purchasing practices may be leading to deforestation. In response, calls for wider forest supply chain transparency are growing, and EUDR is acting as an accelerant. Its implications are top of mind for anyone exporting affected products to Europe.”
Commodity markets intelligence consultancy ResourceWise is holding a webinar hosted by Mat Stone, an EU regulations expert. He will discuss topics such as:
- The global implications of EUDR for the wood products industry
- Key timelines and implementation
- Challenges and strategic adjustments needed for forest products exporters and buyers
- The value of supply chain transparency and traceability
ResourceWise is working with industry leaders, third-party partners, and EU representatives to build a technology tool to help assist the EUDR’s objectives in preserving our valuable resources.
