In June 2023, the EU Regulation on Deforestation-free Products, or EUDR, was written into law. The law is designed to stop consumption of products in the EU from contributing to deforestation around the world. From December 30th, 2024 businesses selling commodities linked to deforestation will be required by this law to prove that they have not contributed to new deforestation or forest degradation.
The EU has identified and “listed” seven commodities that are linked to deforestation. As well as addressing deforestation, the EU estimates this law will reduce carbon emissions generated by the EU’s consumption and production of these commodities by 32 million tonnes per year; more than the whole of Denmark emitted in 2022.
The EU has designated cocoa, coffee, cattle, soya, oil palm, wood and rubber and their derivatives as “listed” products. Derivatives include things like chocolate, plywood and tyres. You can see a full list of in scope derivatives of listed products in the legislation. If you’re not sure if the products your company trades are listed products, contact us and one of our friendly team will get back to you within two working days.
All businesses selling listed products into the EU need to comply with EUDR. If your business sells any of the listed products, you may still need to comply, even if you don't sell directly to customers in the EU. This is because your customers may have customers in the EU. If your customers sell listed products containing listed products that you sold to them, your business will need to comply with EUDR to ensure that your customers can keep selling to their customers in the EU. We've put together this flowchart to help you decide which of your products need to comply with EUDR.
What your business needs to do to comply with EUDR depends on where you sit in the supply chain. If you are buying commodities directly from producers, your company will need to collect evidence that the land these commodities originate from has not been recently deforested and that the producers have complied with local laws. This information needs to be collated into a due diligence statement. If you are further down the supply chain, your company is responsible for maintaining the chain of custody of due diligence statements so that the impact of any infringement can be traced through the supply chain.
Contact us today to find out how Innovative Energy Consultants can help your business to get EUDR ready in time for December 30th, 2024.
In June 2023, the EU Regulation on Deforestation-free Products, or EUDR, was written into law. From December 30th, 2024 businesses selling commodities linked to deforestation will be required by this law to prove that they have not contributed to new deforestation or forest degradation. Read on to find out if your business needs to comply with EUDR.
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