EU Regulation on deforestation-free products

EU Regulation 2023/1115 of 31 May 2023 on deforestation-free products (the European Deforestation-Free Products Act), commonly referred to as the EUDR Regulation, is a key element of the European Union’s policy to combat deforestation and forest degradation worldwide.

The European Union authorities view the EUDR as a response to the loss of 420 million hectares of forest recorded over the last 30 years. If we imagine that this is an area larger than the entire European Union and take into account the fact that, unfortunately, the EU has played an active part in this global deforestation through, for example, the import of goods, it will be easier for us to understand the European Commission’s intention in implementing the EUDR.

The difference between deforestation and forest degradation in the light of the EUDR rules

In order to understand and correctly apply the provisions of the EUDR Regulation, it is crucial to distinguish between two often-confused concepts: deforestation and forest degradation. Although both refer to negative changes taking place before our very eyes in forest ecosystems, they differ significantly in scope and the effects they cause.

Deforestation

Deforestation refers to the permanent removal of forest from a given area

and its conversion into a land use of a completely different nature, such as arable land, monoculture plantations or areas designated for infrastructure or development.

In the context of the EUDR, what matters is whether land classified as forest before 31 December 2020 has been irreversibly converted into non-forested land after that date.

This most often occurs due to:

• clearing of forest for soya or oil palm plantations,
• felling of forest to build a road or industrial zone,
• conversion of forest into land for residential development.

Unfortunately, the consequences of such actions are irreversible and result in the loss of the Earth’s biodiversity, the destruction of entire habitats, and a drastic reduction in the ability of green spaces to absorb CO₂. Other negative effects include the loss of water and soil purification functions, as well as changes in water retention and groundwater recharge. It is also important to note that large forest areas are a significant source of moisture and help prevent the desertification of continental regions.

Forest degradation

Forest degradation is an ongoing process involving the gradual deterioration of forest quality; although such areas remain formally classified as forests on maps, they lose their fundamental functions and ecological significance.

According to the EUDR, degradation involves the transformation of primary or natural forest into degraded forest, e.g. through overexploitation of resources or habitat fragmentation.

The most significant causes of forest degradation currently include:

• selective and overly intensive felling of mature trees of high value, which disrupts the existing forest structure,
• the construction of forest road networks, contributing to the loss of cohesion and fragmentation of the ecosystem subject to human intervention,
• the clearing of undergrowth and the destruction of species specific to the local fauna.

The effects of such destructive activities are visible to the naked eye as:

• a weakening of the forest’s ability to regenerate naturally,
• a reduction in forest biodiversity,
• an increased susceptibility of the forest and tree stand to disease, fire and the spread of invasive species.

The main differences between deforestation and forest degradation różnice między wylesianiem a degradacją lasów

Deforestation and forest degradation in the light of the EUDR requirements

In the fight against deforestation and forest degradation, the EUDR strictly prohibits the placing on the market within the EU of goods and products originating from:

• areas deforested after 31 December 2020,
• areas where forest degradation has occurred.

This means that both the complete removal of a forest and its serious deterioration are treated as breaches of the EUDR regulations. For operators and traders, the most important priority in this situation should be the establishment of an effective due diligence system capable of detecting both types of destructive activities that determine the state of the world’s forests.

Summary

Deforestation = the complete and permanent removal of a forest from maps and the Earth’s surface.

Forest degradation = a deterioration in the condition of a forest which, however, formally still exists on the map.

The EUDR was established to enhance the European Union’s contribution to mitigating the effects of the above activities and to ensure that products originating from supply chains linked to deforestation and forest degradation are neither placed on the EU market nor exported from it.

The EUDR is a milestone towards a sustainable future, aimed at ensuring that products that do not comply with the requirements of Article 3 of the Regulation are not placed on the EU market or exported from it.  It should be borne in mind that although the EUDR imposes new, stringent obligations on businesses, proper preparation and a proactive approach to verifying and continuously monitoring suppliers can turn these challenges into a competitive advantage for the company. It is worth taking action now to ensure your organisation is properly prepared. Find out more about our EUDR implementation services for your company. Click on the LINK