Understanding the EUDR: Four topics on the agenda
“Certified companies with sustainable practices like Södra can benefit from the EUDR,” says Jonas Larsson, Senior Advisor Forestry at Södra Cell. “There are areas which require clarification and refinement, however.”
The implementation of the European Union Deforestation Regulation (EUDR) was postponed for a year just before Christmas, providing an opportunity for Södra to address four particular topics on the agenda for EUDR implementation:
- The readiness of the EU's TRACES system, which is used for sending data to the EU. Despite being launched on time, the system is not yet ready for full-scale operation due to issues with response time and uptime.
- The satisfactory division of participating countries into risk categories – low, standard and high. This is due to be finalized by the end of June this year. While Sweden is expected to fulfil the criteria for a low-risk country, our national industry needs to work with the Swedish Government to provide supporting evidence to ensure this outcome.
- The transition period from the EUTR (Timber Regulation) to the EUDR. There is a need for clear guidance on how to handle products that will be placed on the market during this transition. For instance, products made from raw materials harvested in 2025 but placed on the market in 2026 may still be subject to the Timber Regulation rather than the Deforestation Regulation. This has significant implications for the forest industry and requires clarification from the EU.
- Traceability in practice. Handling strict traceability for composite products such as pulp, the EU has proposed a system “Reporting in excess.” The idea is that over-reporting the number of harvesting plots from which timber is sourced will scoop up all sourcing possibilities. However this could lead to complications should any wood from this large number of plots prove to be non-compliant. It could unjustifiably condemn compliant wood as non-compliant. Instead we encourage the EU to accept systems based on a First-In First-Out principle – while ensuring that all wood is complying with EUDR requirements.
Background and current status
The EUDR aims to combat deforestation and forest degradation by regulating the import and use of forest products within the EU. A formal decision to extend the implementation time by one year was announced on December 18 last year. This extension provides better conditions for reliable implementation, although there is still a need for clarification and simplification of the regulation.
Despite the challenges, Larsson believes that companies like Södra, which are already certified and have sustainable practices, will benefit from the EUDR. “We need to stay informed and prepared to adapt to these regulatory changes to ensure smooth operations and maintain customer confidence,” said Larsson. “The transition period and traceability issues require further clarification from the EU, but companies that are proactive in their compliance efforts will likely gain a competitive edge.”
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