The European Union last year took a significant (if somewhat under-the-radar) step forward with the introduction of the EU Deforestation Regulation EU2023/1115 (EUDR). This groundbreaking legislation aims to curb deforestation and forest degradation linked to products sold in the EU market.
What is the EUDR?
The EU Deforestation Regulation, which came into force on June 29, 2023, is designed to minimise the EU’s contribution to global deforestation and forest degradation. It sets strict due diligence requirements for companies placing certain commodities and products on the EU market or exporting them from the EU.
The regulation covers several key commodities and their derived products:
- Cattle
- Cocoa
- Coffee
- Palm oil
- Rubber
- Soya
- Wood
These commodities were chosen due to their significant impact on global deforestation rates. Understanding whether your products fall under the EUDR’s scope is the first critical step in evaluating compliance.
Core Requirements
Under the EUDR, companies must ensure that these products:
- Were produced on land that has not been subject to deforestation after December 31, 2020.
- Have been produced in accordance with the relevant legislation of the country of production.
- They are covered by a due diligence statement, indicating no more than a negligible risk of non-compliance.
Companies are required to:
- Collect information and documents to prove compliance
- Conduct risk assessments
- Implement risk mitigation measures where necessary
- Submit due diligence declarations to competent authorities
Large companies have until December 30, 2024 to implement the necessary systems and procedures. For smaller companies, this deadline is extended to June 30, 2025.
Impact of the EU Deforestation Regulation on UK Businesses
EUDR presents unique challenges and considerations for UK businesses, given the country’s position outside the European Union following Brexit. While the UK is no longer obligated to follow EU regulations directly, the EUDR will still have significant implications for many UK companies.
Export Considerations
UK businesses exporting products covered by the EUDR directly into the EU will need to comply with the regulation. This includes:
- Ensuring products are deforestation-free
- Conducting due diligence on supply chains
- Providing necessary documentation to prove compliance
UK companies that are part of supply chains ultimately leading to EU markets will also be affected. EU importers may require UK suppliers to provide evidence of EUDR compliance, even if the UK company is not directly exporting to the EU.
UK businesses may need to reassess and potentially modify their sourcing practices to ensure compliance with EUDR standards, even if they’re not directly exporting to the EU. This could involve:
- Implementing more rigorous supplier vetting processes
- Investing in traceability systems
- Potentially changing suppliers to those that can guarantee EUDR compliance
UK government is already consulting on legislation to mirror EUDR, with its origins in the Environment Act 2021, Schedule 17: Use of Forest Risk Commodities in Commercial Activity. Companies who engage now in compliance to EUDR will therefore be better placed when UK legislation catches up, and potentially leverage new opportunities arising from this regulatory shift.
In order to ensure you are kept aware of changes to legislation affecting you, and can plan for maintaining future compliance, keep checking our website or socials, and give EHS Management a call on 07764302858, or drop us a line here.
