Kevin Mason
The European Union’s Deforestation Regulations (EUDR) are set to come into force by the end of this year, but many market participants feel that too many questions remain unanswered. The regulations would apply to seven commodities, including timber (fibre/pulp/paper/board). Producers must be able to prove that their production did not contribute to deforestation at the source (including within Europe) and must include specific geolocation data for raw-material inputs. Participation in existing certification schemes (e.g., FSC, PFEC) can provide some, but not all, of the required documentation and assurances.
There has been a range of reactions to the EUDR deadline across the companies in our universe, from “non-event” to “unworkable,” with far more in the latter camp. Huge hurdles to implementation remain, including the lack of a sufficiently robust European Union IT system to receive information (the test systems crashed with data from a single company!), insufficient auditors and potential conflicts between very granular geospatial data and privacy regulations. One aspect of the regulation has already been pushed back, with all countries initially classed as “standard” risk rather than the ulimate high/standard/low rating system (which will initially disadvantage low-risk countries). Senior U.S. administration officials have asked for delayed implementation, citing “critical challenges” for timely compliance.
Most of our contacts expect some form of the regulation to eventually be put in place, but timing—at least regarding enforcement—is likely to be pushed back. There will be costs for compliance, but there may be benefits too, with spot suppliers and/or producers with a weaker focus on sourcing and documentation simply choosing not to ship to Europe. Given the scope of the regulations, we see an extended (Brexit-like) adjustment period.” [END]
US paper makers are warning the EU that a new law requiring them to trace timber to its origins risks disrupting $3.5 billion of trade and raising prices for diapers, sanitary pads and other hygiene products. It will be impossible to comply with the pending regulation because pulp supply chains are too diffuse to track all trees, and there’s often a two-year lag between the time they’re cut down and when they’re turned into fiber. The US industry is a major exporter of “fluff pulp,” an absorbent material used to make personal products. American suppliers meet about 60% of the EU’s needs, so any interruption would reverberate throughout the 27-nation bloc. “The EUDR as is currently written will raise the costs significantly for US producers, and it will translate into inflationary pressures in the EU,” said Mark Pitts, at AF&PA. There have been some repercussions from the law even before it takes effect, with companies having supply agreements derailed, Pitts said. [to access the full story a Bloomberg subscription is required]
BONN, Germany — The Forest Stewardship Council (FSC) announced the launch of FSC Aligned for EUDR, a new solution designed to support compliance with the European Union Regulation on Deforestation-free Products (EUDR). This offering aims to simplify the complex task of meeting EUDR requirements for businesses trading with forest-based products in Europe. FSC Aligned for EUDR will support companies that need to comply with EUDR through two key components: 1. 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. 2. 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. For more information visit 
We have had a bumpy relationship with trees. Our landscapes were largely treeless at the beginning of the 20th century, with just 1 per cent of Ireland’s land covered by forest. …Forests have increased from 1 per cent to over 11 per cent over the past 120 years, with most of the increase due to plantations of non-native conifer species. One single conifer species from the west coast of North America, Sitka Spruce, occupies 45 per cent of Ireland’s forest area. …We need to plant at least 8,000 hectares of forest per year to achieve 18 per cent of our land area covered by forest by 2050. Our new forests will be around for decades, and they must deliver for climate, nature, wood, people, and economic and rural development. This will require investment in the public and private forestry sectors to encourage and speed up the planting of diverse multifunctional and mosaic forests.
Climate change is likely to drive tree species towards colder and wetter regions of their geographical distribution, a new study has shown. The research, led by the University of Alcalá, in Spain, and including researchers at the University of Birmingham, draws together data from across Europe and North America to show that tree species in the Northern Hemisphere are starting to become denser in colder and wetter regions. The study provides the first quantitative evidence that climate change is driving this change in the numbers of trees of each species across temperate forests on a continental scale. The researchers analysed data from over two million trees, representing 73 species widely distributed across Europe and the United States. …Understanding how forest species are responding to climate change through increasing their density in these more northerly regions is essential for planning ecosystem conservation, management and restoration.
