With the EU Deforestation Regulation (EUDR), which came into force at the end of June 2023, the European Union has taken a significant step towards protecting global forests. This regulation obliges companies to prove that their supply chains are free from deforestation and illegal activities. This includes not only the protection of forests as ecologically valuable systems, but also the active fight against the degradation of forests and the illegal displacement of local populations and indigenous communities. From 31 December 2024, the EUDR will become fully effective after a transition period and will pose new challenges for all market participants.
In simple terms, ‘deforestation-free’ can be explained as follows: Forests should remain forests. Officially, this means a ban on the conversion of areas previously defined as forest – in particular to prevent illegal subsequent utilisation, for example through the expansion of agricultural land. Companies that place products made from raw materials such as beef, soya, palm oil, wood, coffee, cocoa and natural rubber on the European market must ensure that their supply chains meet the strict requirements of the regulation. A due diligence declaration confirming that the products are deforestation-free and legal is required prior to market launch. According to our information, an EU-wide portal (TRACES NT) for submitting these declarations is currently being further developed.
The EUDR thus tightens existing regulations such as the European Timber Regulation (EUTR) from 2010 and expands their scope. While the EUTR focussed on the import and export of timber products, the new regulation covers a broader range of raw materials and increases the requirements for traceability and transparency along the entire supply chain.
For the Brüning Group, it is beyond question that we clearly distance ourselves from illegal timber and timber products. We are aware that the actions of individual illegal actors cause massive damage to trust in an entire industry. We are therefore committed to our responsibility to fulfil the required due diligence obligations of the EUDR as soon as they are properly defined and can be implemented.
In the political debate, there have been repeated calls for the regulation to be postponed, most recently by the German government. Our position is clear: the EUDR will be introduced sooner or later. Nevertheless, politicians must formulate precise and practicable guidelines. As long as this is not guaranteed, we are in favour of a postponement, including the necessary adjustments.
Even though many details of the regulation are already known, there are still unanswered questions regarding its specific implementation, which will confront companies with complex tasks. We are working hard to ensure that we are optimally prepared for the requirements of the EUDR by the end of this year. In this context, we are focusing on a close dialogue with our partners in order to jointly develop solutions and master the complex challenges of the new regulation.
We look forward to a lively exchange and are convinced that the EUDR will contribute to a more sustainable and responsible global value chain in the long term.