The European Deforestation Regulation could profoundly impact the pulp and paper industry

By Alejandro Mata Lopez
RISI Fastmarkets
June 12, 2024
Category: Business & Politics
Region: United States, International

The European Deforestation Regulation (EUDR), a pivotal component of the EU Green Deal, has swiftly emerged as a point of concern for the European and global pulp and paper industries. This concern does not arise from a lack of comprehension of the EUDR’s objective, but from the numerous areas of ambiguity surrounding its implementation. …The EUDR is projected to reshape trade and supply chains for industries that can be erroneously associated with deforestation, such as pulp and paper. Companies will face increased operational expenses, regulatory scrutiny and the threat of fines for non-compliance, which could reach a minimum of 4% of the annual turnover, confiscation of goods and even a temporary ban from participating in EU procurement. Selling products into the EU will lead to higher costs for companies, undoubtedly leading to price increases when selling in Europe.

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