What UK Businesses Need to Know About the EU Deforestation Regulation

BY:

Niamh O'Connor
5 June 2024

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The European Union (EU) has introduced the EU Deforestation Regulation (EUDR) to combat global deforestation and forest degradation. This regulation is not only important but crucial for businesses that export to the EU market, ensuring that products sold in the EU are deforestation-free. Understanding and complying with this regulation is not just a necessity but a priority for UK businesses, especially those exporting to EU markets.  

The EU Deforestation Regulation (EUDR) replaces the EU Timber Regulations (No. 995/2010). It will come into effect on 30th December 2024, marking a significant shift in the regulatory landscape for businesses exporting to the EU market.


Understanding the Regulation

Relevant commodities and products may only be placed on the EU market, made available in, or exported from the EU, if:

  1. they are deforestation-free,
  2. they have been produced in accordance with the relevant legislation of the country of production and
  3. a due diligence statement covers them.


Deforestation-free means that the relevant commodities must not have been produced on land deforested after December 31st, 2020. For timber and timber products, it means that the timber was harvested without causing forest degradation in the respective forest after December 31st, 2020.


The EUDR applies to a range of commodities that are commonly linked to deforestation, including:

  • Palm oil
  • Soy
  • Wood
  • Cocoa
  • Coffee
  • Beef
  • Rubber


Annex 1 to the Regulation contains a complete list of the relevant EU Customs codes and individual product descriptions.


The regulation ensures that these products and their derivatives do not contribute to deforestation or forest degradation.


The EUDR affects UK companies exporting any specified commodities to the EU market. These companies must demonstrate that they have conducted due diligence checks to ensure their products have not been sourced from land deforested or degraded after December 31st, 2020.


Due Diligence Obligations

Businesses have the power to ensure their supply chains are deforestation-free through due diligence.


This involves:

  • Traceability: Being able to trace the origin of the commodities.
  • Risk Assessment: Evaluating the risk of deforestation in their supply chains.
  • Mitigation Measures: Taking steps to reduce identified risks.
  • Geolocation Information


One key requirement under the EUDR is the collection of geolocation data for the land where the commodities were produced. This data is crucial, as it helps verify that the products do not come from deforested areas. It can be obtained through various means, such as satellite imagery or on-site inspections.


Compliance Statement

Businesses must submit a due diligence statement to EU authorities, confirming that their products comply with the EUDR.


Staying Informed

The EUDR is part of a broader initiative to promote sustainable and ethical business practices. Staying informed about regulatory updates and changes is vital for ongoing compliance and business success.


In December 2023, the UK Government announced details of its Forest Risk Commodities (FRC) regime, set to be implemented under the Environment Act 2021. The targeted commodities include non-dairy cattle products (beef and leather), palm oil, cocoa, and soy (and any derived products). Unlike the EU regime, this list does not include coffee and rubber.


Ministerial Statement on the Forest Risk Commodity Regulation


The EU Deforestation Regulation aims to eliminate deforestation from global supply chains and promote sustainable production practices. Understanding and adhering to this regulation is essential for UK businesses to maintain access to the EU market. By implementing thorough due diligence procedures and ensuring supply chain transparency, companies can support environmental sustainability while continuing to thrive in the EU market.


Supporting Resources

To help businesses comply with the EUDR, various resources are available:

EU Guidelines & FAQ’s

Guidance EU Deforestation Regulation

EUDR Full Regulation


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