The new Regulation (EU) 2023/1115 on deforestation-free products aims to promote the consumption of such products and reduce the EU’s negative impact on global deforestation and forest degradation. The aim is to reduce greenhouse gas emissions and curb biodiversity loss. This regulation is part of a comprehensive action plan to combat deforestation and forest degradation. The associated commitments were later reaffirmed by the European Green Deal, the EU’s biodiversity strategy for 2030.
Why should forests be protected?
Forests cover about 30 % of the terrestrial areas of our planet. They are of central importance for human health and well-being as well as for the entire ecosystem. Forests also serve as refuges for biodiversity, harbouring numerous species of animals, plants and fungi worldwide. Forests can also help to provide clean water, produce sustainable raw materials, stabilise the soil and protect it from natural hazards. Furthermore, these natural spaces provide many jobs in the areas of timber harvesting and forestry. Another key aspect is that forests are able to bind carbon dioxide and thus absorb greenhouse gases – which plays a crucial role in the fight against climate change.
What does the Deforestation Regulation cover?
The regulation obliges all affected companies to exercise due diligence as soon as they import or export relevant goods into the EU or distribute them within the EU. Market participants and traders are required to prove that the products are both deforestation-free, i.e. that they originate from areas that have not been cleared after 31 December 2020, and that they have been produced in accordance with the applicable legal provisions in the country of production. In addition, companies must provide precise geographical information on the agricultural land on which the sourced products were produced in order to enable a thorough verification of compliance.
When does the Deforestation Regulation come into force and for whom?
The EUDR was actually supposed to come into force for the first time on 30 December 2024 for certain companies and then be gradually extended. Based on feedback from various international companies, the European Commission has now suggested postponing the start date by one year and this proposal has now been accepted by the Council. If the European Parliament also agrees, the obligations resulting from the regulation will apply as follows:
The aim of this postponement is to provide companies with legal certainty, predictability and sufficient time to implement the regulations effectively and smoothly.
Which products are affected?
The current version of the EUDR covers the following raw materials and products made from them:
No specific thresholds or volume values are defined. Products with a recycled content of 100 per cent, packaging material that is used exclusively to support, protect or transport another product placed on the market and operating instructions that are enclosed with shipments (unless they were purchased separately) are excluded. In the area of product labelling, all hangtags are particularly affected as they are made of wood. We are also currently aware that transfers may also be affected as they are imported via the customs tariff number 49089000, which counts as paper and therefore also as wood.
There are still many unanswered questions regarding the deforestation regulation. We are currently starting comprehensive legal research and would like to involve you in this process and keep you regularly informed of developments. We also do not yet have an optimal solution for data collection and are in close dialogue with our production facilities to clarify how we will deal with this issue in the future. We will of course keep you informed on an ongoing basis and are happy to share the information available to us with you.
