Recent developments around the EU Deforestation Regulation (EUDR) show varied global reactions and adjustments. Brazil is preparing countermeasures against European environmental regulations, while Argentina and Malaysia are praised as leaders in sustainable agriculture. Companies, especially in the packaging and timber industries, must rapidly adapt their supply chains to comply with the new rules. NGOs warn of potential delays that could harm the environment, while organizations like Bioenergy Europe and ETRMA advocate for improved information systems. Despite challenges, EUDR compliance offers opportunities for economic growth and market positioning.
Read a selection of the news from last week:
EUDR in general
Brazil prepares counterattack against Europe’s unilateral environmental measures
Brazil has announced steps to counter the unilateral environmental measures imposed by Europe. The European Union has implemented the EUDR (European Union Deforestation-free Regulation) to combat deforestation, but Brazil considers these measures harmful to their economy and sovereignty. Brazilian policymakers are preparing a package of countermeasures, including possible legal actions and diplomatic moves. The government emphasizes its commitment to environmental protection but argues that the EU measures are unfair and detrimental to Brazil’s economic interests.
Read the article “Brasil prepara contra-ataque às imposições ambientais unilaterais da Europa” (São Bento em Foco, 21-05-2024, Portuguese)
Argentina leads with deforestation-free agricultural exports
Argentina has positioned itself as a leader in exporting deforestation-free agricultural products. By promoting sustainable agricultural practices, the country aims to meet the strict requirements of the European market under the new EUDR regulation. This shift offers economic benefits and helps preserve forests. Argentine officials emphasize that this strategy is not only environmentally friendly but also strengthens the competitive position of Argentine products in the international market.
Read the article “Argentina Hace Punta Con Exportaciones Agropecuarias Libre De Deforestación” (BioEconomia, 20-05-2024, Spanish)
Time running out for packaging companies as EUDR set to come into force at the end of the year
Time is running out for packaging companies as the EUDR comes into force at the end of the year. GlobalData warns that companies must act quickly to comply with the new regulations, which set strict requirements for the origin of materials and the impact on deforestation. Companies are urged to review their supply chains and work with suppliers to comply with the regulations and avoid penalties.
Read the article “Time running out for packaging companies, as EUDR set to come into force at the end of the year, observes GlobalData” (ForeignAffairs.co.nz, 21-05-2024, English)
EU praises Malaysia for slowing deforestation ahead of EUDR
The European Union has praised Malaysia for significant progress in slowing deforestation, an important development ahead of the implementation of the EUDR. The Malaysian government has implemented strict measures to combat deforestation, aligning their efforts with the new EU regulations. This recognition from the EU may lead to stronger bilateral relations and new opportunities for trade and cooperation in sustainability.
Read the article “Ahead of EUDR, EU Praises Malaysia for Slowing Deforestation” (Wood Central, 21-05-2024, English)
EU and Indonesia review progress of joint task force on EUDR implementation
The European Union and Indonesia have reviewed the progress made by the joint task force in implementing the EU Deforestation Regulation (EUDR). Both parties acknowledge the challenges and emphasize the importance of collaboration to effectively address deforestation. The task force focuses on strengthening law enforcement, improving monitoring capabilities, and supporting local communities to promote sustainable practices.
Read the article “EU and Indonesia take stock of progress made by the Joint Task Force to implement the EU Deforestation Regulation” (European Commission, 21-05-2024, English)
Five key challenges of the EUDR for Indian exporters
The introduction of the EU Deforestation Regulation (EUDR) poses significant challenges for Indian exporters. This regulation requires that products entering the EU be deforestation-free, forcing exporters to adapt their supply chains. The main challenges include meeting new traceability requirements, increasing transparency, complying with strict documentation requirements, investing in sustainable production practices, and navigating complex compliance procedures. Adapting to these rules demands substantial efforts and investments from Indian companies to secure their exports to the EU.
Read the article “The EU Deforestation Regulation (EUDR): 5 Key Challenges for Indian Exporters” (Research and Ranking, 21-05-2024, English)
EU and Indonesia collaborate to implement the EUDR
The European Union and Indonesia have strengthened their cooperation to effectively implement the EU Deforestation Regulation (EUDR). This collaboration focuses on improving law enforcement, enhancing monitoring mechanisms, and supporting sustainable practices in agriculture and forest management. Both parties emphasize the importance of these joint efforts to combat deforestation and ensure environmental protection. This partnership is a significant step towards global sustainability and environmental conservation.
Read the article “EU and Indonesia cooperate to implement the EU Deforestation Regulation” (European Interest, 21-05-2024, English)
EUDR deadline approaches for packaging industry: sustainable supply chains essential
With the approaching deadline for the EU Deforestation Regulation (EUDR), packaging companies are under pressure to make their supply chains more sustainable. This regulation, which comes into effect at the end of the year, requires that all products entering the EU be deforestation-free. Companies must act quickly to vet their suppliers and ensure compliance with the new rules. Failure to meet these requirements can result in significant fines and trade restrictions.
Read the article “Packaging companies face EUDR deadline, need sustainable supply chains” (Packaging Gateway, 2024, English)
EU deforestation regulation takes effect this December, impacting European packaging companies
The EU Deforestation Regulation (EUDR) will take effect this December, significantly impacting European packaging companies. This regulation requires that all products entering the EU be deforestation-free, compelling companies to adjust their supply chains. This means that packaging companies must screen their suppliers and comply with strict traceability and documentation requirements to avoid trade restrictions or fines.
Read the article “EU deforestation regulation takes effect this December, affecting European packaging companies” (Canadian Packaging, 21-05-2024, English)
Delays in EU deforestation rules risk ‘massive’ Amazon destruction, NGOs warn
Non-governmental organizations (NGOs) warn that delays in implementing the EU Deforestation Regulation (EUDR) could lead to massive destruction of the Amazon. They call for swift and strict enforcement of the rules to prevent the destruction of valuable forests. These delays could severely undermine efforts to combat deforestation and result in irreversible environmental damage.
Read the article “Delays to EU deforestation rules risk ‘massive’ destruction of Amazon, NGOs warn” (ENDS Europe, 21-05-2024, English)
FHP continues to oppose the EUDR
The Austrian Federation of Wood Producers (FHP) continues to oppose the EU Deforestation Regulation (EUDR). They argue that the regulation places a disproportionate burden on the wood industry and brings significant economic disadvantages. FHP calls for a revision of the rules and advocates for a more balanced approach that considers both environmental protection and economic interests.
Read the article “FHP lehnt EUDR weiterhin ab” (NÖ Wiener Forstverein, 21-05-2024, German)
Bioenergy Europe and other organizations express concerns about the EUDR information system
Bioenergy Europe and other organizations have expressed concerns about the information system used for the EU Deforestation Regulation (EUDR). They claim that the system is complex and brings significant administrative burdens. The organizations call for simplifications and improvements to ensure that companies can efficiently comply with the regulation without unnecessary bureaucratic obstacles.
Read the article “Bioenergy Europe and other organisations share concerns on the EUDR information system” (Bioenergy Europe, 21-05-2024, English)
German Bundesrat proposes resolution on deforestation-free supply chain
On May 17, 2024, the German Bundesrat adopted a resolution regarding a deforestation-free supply chain. This resolution emphasizes that additional due diligence measures for raw materials and products from countries with a low deforestation risk will not improve the global deforestation situation. In addition, many unanswered questions remain about implementation by the December 30, 2024 deadline, such as the legal consequences and the implementation of controls. The testing phase has shown significant flaws, questioning the feasibility of the regulation and predicting significant burdens for the woodworking industry. The Bundesrat therefore advocates an extension of implementation periods and less bureaucracy for producers in low-risk countries.
Watch the video “Die #EUDR im Bundesrat - Entschließungsantrag zur entwaldungsfreien Lieferkette verabschiedet…” (Bundesrat, 17-05-2024, German).
EUDR information system not yet on track to meet requirements of properly functioning supply chains
The European Tyre and Rubber Manufacturers’ Association (ETRMA) warns that the information system for the EU Deforestation Regulation (EUDR) is not yet ready to meet the requirements of properly functioning supply chains. The current system faces significant shortcomings in data collection, traceability, and transparency, which could lead to inefficiencies and compliance issues for companies. ETRMA calls for improvements to ensure that businesses can effectively meet their obligations under the EUDR.
Read the article “EUDR information system not yet on track to meet requirements of properly functioning supply chains” (ETRMA, 22-05-2024, English)
FGV Direito Rio launches digital platform on European anti-deforestation regulation
The Brazilian university FGV Direito Rio has launched a digital platform focused on the European anti-deforestation regulation, the EUDR. This platform provides information and tools to businesses and stakeholders to help them comply with the new rules aimed at reducing deforestation. The initiative comes at a time when companies worldwide need to adapt to stricter environmental laws and offers a valuable source of information and support.
Read the article “FGV Direito Rio lança plataforma digital sobre norma europeia de antidesmatamento” (Migalhas, 22-05-2024, Portuguese)
Green economy - What do sustainability laws achieve?
This article on Lebensmittelpraxis.de discusses the impact of sustainability legislation on the economy. The focus is on new EU laws such as the EUDR and their effects on businesses, particularly in the food sector. Companies now have to be more accountable for their environmental impact and transparent in their supply chains. The laws compel businesses to adopt more sustainable practices but also bring new challenges and costs. The transition to a green economy requires adjustments and investments but can also lead to innovation and new market opportunities.
Read the article “Grünes Wirtschaften - Was bewirken die Nachhaltigkeitsgesetze?” (Lebensmittelpraxis.de, 22-05-2024, German)
Opinion: A call for Mondelez to clean up act on climate, human rights
In an opinion piece on Crain’s Chicago Business, Mondelez is called upon to improve its policies on climate and human rights. The writer emphasizes that the company, one of the largest food producers in the world, can play a crucial role in combating climate change and promoting human rights. The piece advocates for greater transparency and concrete actions to reduce the negative impact on the environment and society.
Read the article “Opinion: A call for Mondelez to clean up act on climate, human rights” (Crain’s Chicago Business, 22-05-2024, English)
Austrian wood industry faces decline in challenging environment
The Austrian wood industry is experiencing a decline in a difficult economic environment. According to the Austrian Wood Industry Association, the sector is dealing with decreasing demand and rising costs, resulting in lower profit margins and production volumes. The industry must adapt to changing market conditions and stricter environmental regulations, such as the EU Deforestation Regulation (EUDR), which adds further pressure on business operations.
Read the article “Holzindustrie Österreichs mit Rückgang in schwierigem Umfeld” (Austrian Wood Industry Association, 23-05-2024, German)
Due Diligence Toolkit | Preferred by Nature
Preferred by Nature offers a Due Diligence Toolkit to help companies comply with the EU Deforestation Regulation (EUDR). This toolkit includes guidelines, best practices, and tools to support companies in establishing responsible supply chains. By using this toolkit, businesses can better meet the stringent requirements of the EUDR and contribute to the fight against global deforestation.
Read the article “Due Diligence Toolkit” (Preferred by Nature, 2024, English)
BVDM supports Federal Council initiative to postpone EU deforestation regulation
The Bundesverband Druck und Medien (BVDM) supports the initiative of the German Federal Council to postpone the implementation of the EU Deforestation Regulation (EUDR). The BVDM warns that the current timeline does not give companies enough time to comply with the new regulations, which could lead to significant supply chain disruptions and higher costs. The organization advocates for a longer transition period to allow companies to make the necessary adjustments without economic harm.
Read the article “BVDM unterstützt Initiative des Bundesrates zum Aufschub der EU-Verordnung gegen Entwaldung” (Verbaende.com, 22-05-2024, German)
Fact-check on EU deforestation regulation by Südwind
Südwind has published a fact-check on the EU Deforestation Regulation (EUDR). The document provides a detailed analysis of the regulation, its objectives, and the expected impact on both the environment and the industry. Südwind emphasizes the necessity of the EUDR to combat global deforestation and clarifies common misconceptions about the regulation. The analysis also highlights the challenges and opportunities the regulation presents for businesses and governments.
Read the article “Faktencheck zur EU Entwaldungsverordnung” (Südwind, 22-05-2024, German)
BDSI warns of significant cost increase due to EUDR
The Bundesverband der Deutschen Süßwarenindustrie (BDSI) warns that the new EU Deforestation Regulation (EUDR) will lead to a significant increase in costs for the confectionery industry. The regulation requires that all products entering the EU be deforestation-free, forcing companies to make expensive adjustments to their supply chains and comply with strict procedures. The BDSI calls for more support and a realistic implementation timeline to minimize the economic impact.
Read the article “23.05.2024: BDSI / EUDR - Süßwarenindustrie warnt vor deutlichem Kostenschub” (Vending Spiegel, 23-05-2024, German)
Wood
Concerns about EUDR challenges for pulp, paper and printing industries
The new EUDR regulations are raising concerns within the pulp, paper and printing industries due to the stringent compliance requirements. These sectors face significant challenges in ensuring traceability and proving the deforestation-free origin of their raw materials. This can lead to increased costs and administrative burdens, which can affect the competitive position of companies. There are calls for more support and clear guidelines to meet EUDR requirements without harming business performance.
Read the article “Concerns rise over challenges posed by EUDR to pulp, paper and printing industries” (Fastmarkets, 23-05-2024, English).
Positive growth of Vietnamese timber and wood products exports in first five months
Vietnam has seen positive growth in timber and wood products exports in the first five months of the year. This growth is attributed to rising demand in the global market and compliance with international sustainability standards, including the EUDR. Vietnam has invested in sustainable production methods and traceability to facilitate exports to the EU. This shows that compliance with the EUDR is not only an obligation, but also offers opportunities for growth and market share.
Read the article “Vietnam’s timber, wood product exports post positive growth in the first five months” (VietnamPlus, 2024-05-23, English).
Sustainable building with wood: New EU regulation makes origin and cultivation methods transparent
The new EU regulation makes the origin and cultivation of wood more transparent, which is an incentive for sustainable construction. These regulations require detailed information on the origin of timber and the agricultural methods used to prevent deforestation. This creates more confidence among consumers and promotes sustainability initiatives in the construction sector. The regulation helps minimize the environmental impact of wood use and promotes the market for sustainably produced wood.
Read the article “Nachhaltig bauen mit Holz: Neue EU-Verordnung Macht Herkunft und Anbauweise transparent” (Rheinische Anzeigenblätter, 2024-05-23, German).
Cocoa
Panel calls for partial regulation of the cocoa sector for quality and other aspects
A panel has called for partial regulation of the cocoa sector to ensure quality and other important aspects. This step is seen as necessary to improve the competitiveness of the sector and ensure that cocoa meets international standards. The panel emphasizes the need for regulations that not only improve quality, but also promote sustainability and protect small farmers. This initiative can contribute to the stability and growth of the cocoa sector.
Read the article “Panel seeks partial regulation of cocoa sector for quality, others” (The Nation Newspaper, 23-05-2024, English).
Looming shortages in cocoa supplies due to systematic shortcomings in the EU Deforestation Regulation
Shortages in cocoa supplies are looming due to systematic shortcomings in the EU deforestation regulation. These regulations impose strict requirements on the traceability and deforestation-free origin of cocoa, which can lead to supply problems. Experts are calling for a pragmatic approach from the EU Commission to adjust regulations to ensure the continuity of the cocoa supply. A balanced approach is needed to guarantee both sustainability and security of supply.
Read the article “Drohende Versorgungsengpässe bei Kakao durch systematic Mängel in der EU-Entwaldungsverordnung – Pragmatismus der EU-Kommission gefragt” (Verbaende.com, 23-05-2024, German).
Coffee
Uganda: How the coffee sector is complying with the EUDR
Uganda’s coffee sector is actively working to comply with the EU Deforestation Regulation (EUDR). Local farmers and exporters are adopting sustainable practices and improving traceability in their supply chains to meet the stringent requirements of the EUDR. This involves investments in technology and training to ensure that coffee production is deforestation-free, helping Uganda maintain its crucial access to the European market.
Read the article “Uganda: così il settore del caffè si sta conformando all’Eudr” (Comunicaffe, 2024, Italian)
Change is brewing for sustainable EU coffee from Honduras and Guatemala
The FAO highlights efforts in Honduras and Guatemala to align their coffee production with the EU Deforestation Regulation (EUDR). These countries are implementing sustainable practices to ensure their coffee is compliant with EUDR standards. This shift not only helps preserve forests but also opens up new market opportunities in the EU for coffee producers from these regions.
Read the article “Change is brewing for sustainable EU coffee from Honduras and Guatemala” (Food and Agriculture Organization of the United Nations, 2024, English)
Coffee importers rush shipments ahead of EU deforestation law
With the EU Deforestation Regulation (EUDR) set to take effect, coffee importers are expediting shipments to beat the deadline. Importers are concerned about potential delays and increased costs associated with the new compliance requirements. This surge in shipments reflects the industry’s urgent efforts to adjust to the impending regulatory changes.
Read the article “Coffee Importers Rush Shipments Ahead of EU Deforestation Law” (Devdiscourse, 2024, English)
Coffee traders speed up shipments before EU deforestation law, says ICO
According to the International Coffee Organization (ICO), coffee traders are accelerating their shipments to Europe in anticipation of the EU Deforestation Regulation (EUDR). This rush aims to avoid the logistical challenges and compliance costs that will come with the new regulation, which mandates that coffee imported into the EU must be free from deforestation.
Read the article “Coffee traders speed up shipments before EU deforestation law, says ICO” (GMA News Online, 2024, English)
Global commodities surge ahead of $2.5b EUDR compliance bomb
The impending EU Deforestation Regulation (EUDR) is driving a significant increase in global commodity shipments, with a focus on avoiding future compliance costs estimated at $2.5 billion. Companies are rushing to ensure their products reach the EU before the regulation takes effect, highlighting the extensive economic impact and logistical challenges posed by the new rules.
Read the article “Global Commodities Surge Ahead of $2.5b EUDR Compliance Bomb” (Wood Central, 2024, English)
Dak Lak enterprises’ ceremony for leading EUDR-compliant coffee production
In Dak Lak, Vietnam, local enterprises have celebrated their leadership in producing EUDR-compliant coffee. This ceremony marks a significant milestone in aligning with the EU’s stringent deforestation-free requirements, ensuring that their coffee can continue to be exported to the lucrative European market.
Read the article “Dak Lak enterprises’ ceremony for leading EUDR-compliant coffee production” (SIMEXCO DAKLAK, 2024, English)
Ethiopian Airlines slashes coffee shipping costs by half, aiming for a caffeinated boost in Asia, the Middle East
Ethiopian Airlines has halved its coffee shipping costs to boost exports to Asia and the Middle East. This move aims to support the country’s coffee industry, which is adapting to new regulations like the EU Deforestation Regulation (EUDR). Lower shipping costs are expected to make Ethiopian coffee more competitive in these regions.
Read the article “Ethiopian Airlines Slashes Coffee Shipping Costs By Half, Aiming for a Caffeinated Boost in Asia, the Middle East” (allAfrica.com, 2024, English)
Brazil is ready for the EU Deforestation Regulation for deforestation-free products
Brazil has announced its readiness to comply with the EU Deforestation Regulation (EUDR). The country has implemented stringent measures to ensure its products, including coffee, meet the deforestation-free standards required by the EU. This proactive approach is aimed at maintaining Brazil’s export volumes to the European market and promoting sustainable practices.
Read the article “Brasil está pronto para Regulamento da União Europeia para Produtos Livres de Desmatamento” (Santa Portal, 2024, Portuguese)
Colombia Coffee Report: Production increases as EUDR approaches
As the EU Deforestation Regulation (EUDR) approaches, Colombia is ramping up its coffee production. The country’s coffee sector is working to ensure compliance with the new regulation, which mandates deforestation-free certification for imports into the EU. This increase in production reflects Colombia’s efforts to maintain its market share in Europe by meeting the EUDR requirements.
Read the article “Colombia Coffee Report: Production Increases as EUDR Approaches” (Daily Coffee News by Roast Magazine, 24-05-2024, English)
Palm oil
Sustainable Palm Oil Dialogue Charts Pathways Towards Climate-smart Solutions
During the recent Sustainable Palm Oil Dialogue, various pathways towards climate-friendly solutions were discussed. Participants emphasized the importance of collaboration between industries, governments, and civil society organizations to reduce the environmental impact of palm oil production. Innovative approaches such as climate-conscious agricultural practices and better traceability in the supply chain were proposed as crucial steps. These initiatives are essential to ensure compliance with the EUDR and to promote sustainable agriculture.
Read the article “Sustainable Palm Oil Dialogue Charts Pathways Towards Climate-smart Solutions” (PR Newswire, 23-05-2024, English).
Soy
First COFCO Soymeal Shipment Meets Upcoming EU Deforestation Regulation (EUDR) Requirements
The first shipment of COFCO soymeal, which meets the upcoming EUDR requirements, has been loaded in Argentina for shipment to Europe. This shipment is a significant milestone in COFCO’s pursuit of sustainability and compliance with strict European regulations. By implementing deforestation-free production processes, COFCO plays a crucial role in protecting forests and promoting sustainable agricultural practices.
Read the article “First COFCO soymeal shipment aligned with upcoming EU Deforestation Regulation (EUDR) requirements loads in Argentina” (COFCO, 23-05-2024, English).
Rubber
Pressure on Imported Rubber and Smallholder Rubber Producers
The EUDR imposes new requirements on the import of rubber, significantly impacting smallholder rubber producers. The regulation aims to combat deforestation but results in additional administrative burdens for producers. This can weaken the competitiveness of small farmers and negatively affect their income. There is a need for support to meet the new requirements while ensuring sustainable production.
Read the article “EUDR puts pressure on imported rubber and smallholder rubber” (Vietnam Agriculture, 20-05-2024, English).
EU Delegation Reviews EUDR Compliance in Sri Lankan Rubber Production
A delegation from the EU has reviewed EUDR compliance in Sri Lankan rubber production. The focus was on sustainable practices and adherence to regulations to prevent deforestation. The evaluation provides insight into the challenges and successes of EUDR implementation in the rubber sector, which is essential for access to the EU market.
Read the article “EU delegation reviews Sri Lanka rubber production EUDR-compliance” (EconomyNext, 20-05-2024, English).
Yokohama Implements RubberWay Geo-Mapping for Sustainable Rubber Procurement
Yokohama has implemented the RubberWay Geo-Mapping system to enhance the sustainable procurement of natural rubber. This system helps trace the origin of rubber and ensure compliance with environmental standards, including the EUDR. The initiative supports efforts to create deforestation-free supply chains and ensure the sustainability of production.
Read the article “RubberWay Geo-Mapping implemented by Yokohama for sustainable natural rubber procurement” (Tire Technology International, 20-05-2024, English).
Sri Trang Delivers EUDR-Compliant Rubber to Tire Manufacturers
Sri Trang has delivered EUDR-compliant rubber to its tire customers. By meeting the strict EU regulations on deforestation-free products, the company ensures that its rubber production is environmentally friendly and sustainable. This enables them to remain competitive in the European market, where sustainability requirements are becoming increasingly stringent.
Read the article “Sri Trang delivers EUDR-compliant rubber to tyre customers” (Rubber Journal Asia, 20-05-2024, English).
Cattle
Deforestation: “Be Alert, Not Alarmed”
During the Beef 2024 event, deforestation was a major topic of discussion. The European Union has announced that from January 1, 2025, seven products, including beef, can no longer be sold if they are produced on land that has been deforested after 2020. This has shifted the focus to defining exactly what constitutes a ‘forest’ and ‘deforestation.’
Dr. Stephen Wiedemann from Integrity Ag emphasized that although the EU regulation seems concerning, there are significant exclusions that limit its impact on the Australian cattle industry. The regulation excludes land primarily used for agriculture or urban purposes, meaning that current farming practices are not the main target of the EUDR.
However, the regulation places a heavy responsibility on processors, who must conduct due diligence to confirm that their supply chains are deforestation-free. This requires extensive traceability and can impose significant administrative burdens.
Dr. Wiedemann also highlighted the advantages of Australia’s advanced traceability system, which enables the industry to better meet international requirements.
Read the article “Deforestation: ‘be alert, not alarmed’” (Beef Central, 22-05-2024, English).
