The European Union Regulation on Deforestation-free Products (EUDR) is a comprehensive legislative framework designed to combat global deforestation and forest degradation, which are significantly driven by the EU’s consumption of certain commodities.
This regulation aims to ensure that products sold in the EU market are free from links to deforestation, whether these products are produced within the EU or imported from other countries.
The EUDR covers a wide range of commodities and products, including soy, palm oil, beef, wood, cocoa, and coffee. It also includes derived products such as leather, chocolate, and furniture. This broad scope is intended to address the various sources of deforestation linked to EU consumption.
“Deforestation is a main driver of the climate and biodiversity crises, and the EU contributes to it by consuming a significant share of products associated with deforestation,” said Marc Jessel, Chief System Integrity Officer leading FSC’s EUDR efforts.
He emphasized the urgency of the situation with the December 2024 deadline fast approaching, and reiterated FSC’s commitment to supporting businesses in meeting these new requirements efficiently and effectively.
“The newly launched FSC Aligned for EUDR leverages our expertise in sustainable forestry practices to provide a purpose-built solution to support EUDR compliance for businesses of all sizes.”
Due Diligence Obligations
Under the EUDR, companies are required to conduct thorough due diligence to ensure their supply chains do not involve deforestation or forest degradation. This due diligence process involves several key steps:
Risk Assessment
Companies must identify and assess the risks of deforestation in their supply chains. This step involves gathering detailed information about the origins of their commodities and evaluating potential deforestation risks.
Risk Mitigation
Once risks are identified, companies must implement measures to mitigate them. This might include changing suppliers, improving sourcing practices, or investing in sustainable production methods.
Reporting
Companies are required to document and report their due diligence efforts. This includes providing detailed records of their risk assessments and mitigation actions, ensuring transparency and accountability in their operations.
Traceability
A crucial component of the EUDR is ensuring the traceability of commodities and products back to their origin. Businesses must provide geographic information on the land where the commodities were produced. This traceability is vital for verifying that the products are indeed deforestation-free.
Verification and Monitoring
The EUDR establishes a robust system for verifying compliance. This includes third-party audits, certification schemes, and other forms of monitoring to ensure that companies meet the set requirements. These verification processes help maintain the integrity and effectiveness of the regulation.
Penalties for Non-Compliance
Companies that fail to comply with the EUDR requirements face significant penalties. These can include fines, restrictions on market access, and other legal consequences. The strict enforcement of these penalties is designed to ensure that businesses take their obligations seriously.
Reporting and Transparency
To maintain transparency, the EUDR requires regular reporting and public disclosure of information related to the due diligence process. This allows for public and governmental scrutiny, helping to ensure that companies remain accountable for their actions.
Objectives of EUDR
The primary objective of the EUDR is to reduce the EU’s contribution to global deforestation and forest degradation. By promoting sustainable supply chains, the regulation aims to ensure that the products consumed within the EU do not harm forests.
The EUDR seeks to enhance consumer confidence by providing assurance that the products they purchase are deforestation-free. This regulation also supports the EU’s broader environmental goals, including biodiversity protection and climate change mitigation.
In summary, the European Union Regulation on Deforestation-free Products is a significant step towards creating a sustainable future. By setting stringent requirements for businesses and ensuring rigorous enforcement, the EUDR aims to protect forests, promote sustainable practices, and contribute to global environmental goals.
The Forest Stewardship Council Streamlines Journey to EUDR Compliance
Forest Stewardship Council (FSC) has launched FSC Aligned for EUDR, a groundbreaking solution aimed at aiding businesses in complying with the European Union Regulation on Deforestation-free Products (EUDR). This new offering is set to simplify the complex process of meeting EUDR requirements for businesses involved in trading forest-based products in Europe.
Key Components of FSC Aligned for EUDR
FSC Aligned for EUDR supports companies through two main components:
FSC Aligned Certification for EUDR: Available from July 1, 2024, this add-on module builds upon FSC’s existing rigorous standards, incorporating specific EUDR regulatory expectations around risk assessment, due diligence, and supply chain transparency.
FSC Aligned Reporting for EUDR: Launching August 30, 2024, this automated data compilation system will assist companies in generating required due diligence reports and statements, as well as enhance traceability and data management across complex supply chains.
Addressing Deforestation and Climate Change
FSC is already supporting over 20 companies to implement FSC Aligned Certification for EUDR through its Early Adopters Onboarding Programme.
Keelong Foo, Director of Thai latex supplier Tat Win, shared their positive experience: “We are proud to be part of the Early Adopter Programme, which has enhanced our ability to meet the requirements of the EUDR. The simplified risk assessment provided by the FSC Regulatory Module has streamlined our processes, making it easier to identify, assess, and mitigate potential risks associated with deforestation in our supply chain. We highly recommend the FSC Regulatory Module.”
For more information about FSC Aligned for EUDR and how it will support the crucial shift to providing deforestation-free forest products to the EU market, please visit FSC’s website or contact them at EUDR@fsc.org.
About the Forest Stewardship Council™ (FSC®)
The Forest Stewardship Council (FSC) is a non-profit organization that provides a proven sustainable forest management solution. Currently, over 150 million hectares of forest worldwide is certified according to FSC standards.
Widely regarded as the most rigorous forest certification system among NGOs, consumers, and businesses alike, FSC tackles today’s deforestation, climate, and biodiversity challenges. The FSC forest management standard is based on ten core principles designed to address a broad range of environmental, social, and economic factors.
FSC’s “check tree” label is found on millions of forest-based products, verifying that they are sustainably sourced, from forest to consumer. For more details, visit FSC’s website.
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