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Does deforestation regulation affect your company?



deforestation, EUDR, EUDR regulation, deforestace, collage

Deforestation is a global problem with widespread environmental, economic and social consequences. In recent decades, there has been a significant decline in forest cover worldwide, with the main causes including agricultural expansion, logging, urbanization and other activities. Forest loss leads to biodiversity loss, climate change and land degradation, with far-reaching impacts on ecosystems and human populations.


Adoption of the EUDR and the new EU Forestry Strategy 


In response to these challenges, the EU adopted the "EUDR" - the Deforestation Regulation - in 2023. This requires companies placing specific commodities on or exporting from the EU market to demonstrate that the products have not come from recently deforested land or contributed to forest degradation. The commodities, associated with the risk of deforestation are following:

  • Beef

  • Soy

  • Palm oil

  • Cocoa

  • Coffee

  • Rubber

  • Timber and wood products


The EUDR enters into force in December 2024.


A shared vision for European forestry, such as the new EU Forestry Strategy 2030, is essential to address the challenges of climate change. The Strategy highlights the need for cooperation between Member States to increase the resilience and sustainability of Europe's forests. Adapting to new regulations such as the EUDR is key to protecting forests and promoting sustainable development in Europe and globally.


The main pillars of the strategy are the protection, restoration and sustainable use of forest ecosystems to ensure their health and resilience. Another important aspect of the strategy is to strengthen cooperation and coordination between Member States, the private sector, the scientific community and civil society. The Strategy also recognises the key role of forests in the bio-economy and as a source of renewable raw materials that can contribute to reducing Europe's dependence on fossil fuels and greenhouse gas emissions.

 

Changes in practice   

 

To comply with the new EUDR, companies operating in the EU forestry and timber sector need to take concrete steps to ensure sustainable and transparent timber trade. The EUDR, which builds on the foundations of the European Union Timber Regulation (EUTR), introduces stricter traceability and accountability requirements in the timber and timber products supply chain, specifically:

 

Strengthening due diligence: companies must establish or improve due diligence processes to thoroughly assess and minimise the risks associated with illegal logging and deforestation in their supply chains. This includes detailed analysis of the origin, type and quantity of timber and timber products.


Implementation of geolocation technologies: One of the new EUDR requirements is the use of geolocation data to confirm that products do not come from areas affected by deforestation. Companies should invest in technologies and systems that allow them to track the geographical location of their timber sources.


Increase supply chain transparency: companies are required to maintain detailed records of their supply chain, including information on the origin, type and quantity of timber all the way back to their source. This requires improved internal recording and reporting systems.


Preparing for sanctions: the EUDR introduces tougher sanctions for companies that fail to comply with regulations. It is therefore essential that companies not only implement the necessary processes to comply but also continuously ensure that these processes are effective and updated in line with the latest legislative changes.

 

Impacts in the Czech Republic


The Czech Republic, as an EU Member State, has to adapt to the EUDR requirements. This means that Czech forestry and timber companies will have to implement due diligence systems to ensure that their products are not linked to illegal logging or deforestation. The Czech government and the private sector can work together to develop national frameworks and guidelines that promote sustainable forestry and ensure compliance with the EUDR.

For the Czech Republic, as for other Member States, the new EU Forestry Strategy and the EUDR together represent a challenge and an opportunity in one.

The challenge is the reporting obligation, the adaptation of the national forest management to the new objectives and requirements of the strategy, including increasing forest biodiversity, promoting sustainable forestry and involving the public in forest protection and restoration.

The opportunity is to use EU support and funding for projects aimed at forest restoration and protection, forestry research and innovation, and forestry education and awareness raising. Implementation of the Forestry Strategy can thus contribute to strengthening sustainable development, nature protection and the fight against climate change in the Czech Republic and across the EU.

 

Green0meter EUDR Tracking


Due diligence in the supply chain is key to tackling deforestation, but it is a major challenge for many companies today. The main barriers undoubtedly include collecting data in a large globalised supply chain and proving that smallholders are not contributing to deforestation.

This is why Green0meter has developed a solution that will not only help combat deforestation, but also facilitate data collection in the supply chain and relieve smallholder farmers in developing countries who are under pressure from legislation.


Green0meter EUDR Tracking simplifies the collection and consolidation of deforestation data in the supply chain. Data collection starts with a simple smallholder app that uses precise satellite data and does not require an internet connection. The data is then collected and analysed in the Green0meter platform, which assesses all the key risks associated with deforestation (e.g. land tenure, compliance with existing legislation, ecosystem and endangered species protection, etc.) and additionally offers ways to mitigate these risks.


The platform enables monitoring of the entire supply chain from small to top actors.



 

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