As global environmental concerns continue to escalate, regulatory frameworks promoting sustainable practices have gained immense importance. At the forefront of these initiatives is the European Union (EU), which has been actively addressing deforestation through key regulations - the European Union Timber Regulation (EUTR) and the recently adopted European Union Deforestation Regulation (EUDR). This article aims to analyze the differences between EUDR and EUTR, providing a comprehensive understanding of their implications for businesses operating within the EU.
About EUTR and EUDR
European Union Timber Regulation (EUTR)
The European Timber Regulation (EUTR) resulted from the FLEGT action plan and has prohibited the placing of illegally sourced timber and timber products on the EU market since 2010 (European Commission, 2010). In its Communication on ‘Stepping up EU Action to Protect and Restore the World's Forests’, the EU acknowledges its crucial role in forest destruction through its consumption of commodities whose production can endanger forests (hereinafter referred to as “forest risk commodities”) (European Commission, 2019b; compare also Pendrill et al., 2019). The EUTR prohibits the "placing on the market" of illegally harvested timber or products derived from such timber, emphasizing the need for due diligence to minimize the risks associated with illegal timber entering the EU market.
Operators are required to trace timber products, ensuring transparency and accountability in the supply chain. In 2021, the European Commission proposed to extend the scope of the EUTR by means of a successor regulation that would also address deforestation and forest degradation caused by EU consumption of agricultural commodities, which is the new European Union Deforestation Regulation (EUDR).
European Union Deforestation Regulation (EUDR)
Building upon the foundations laid by EUTR, the EU recently adopted the European Union Deforestation Regulation (EUDR). The EUDR prohibits certain forest risk commodities and products made thereof on the EU market unless they are deforestation-free and legal under the legislation of the producer countries. This successor regulation takes a broader approach by expanding its scope to cover a variety of commodities beyond timber. These include wood, palm oil, soya, cocoa, coffee, rubber, and even extend to evidence of deforestation-free cattle-rearing. EUDR mandates thorough risk assessments, risk mitigation, and an annual due diligence statement from operators. The EUDR will replace the EU Timber Regulation (EUTR) which only covers the illegality of timber products.
This new EU regulation on deforestation-free supply chains has been formally adopted in May 2023 and the implementation dates will be applied differently for SME and non-SME.
Similarities between EUTR and EUDR
While EUDR and EUTR share a common mandate - the prevention of deforestation and promotion of sustainability - they also exhibit similarities in their approach.
Legislative Objectives:
Due Diligence:
Differences Between EUTR and EUDR:
As much as EUDR and EUTR share similarities, significant differences distinguish them.
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Understanding the differences between the European Union's Deforestation Regulation (EUDR) and the EU Timber Regulation (EUTR) is crucial for businesses to meet compliance standards and advance sustainability objectives. These regulations showcase the EU's commitment to combat deforestation and promote responsible trade. Not only operators and traders, but also businesses play a crucial role in meeting these standards, contributing to global environmental goals and fostering sustainable practices.
As the EU transitions towards a more comprehensive framework, organizations can enhance their sustainability goals by partnering with a third-party like Rockhill Asia. Offering access to sustainable-certified suppliers in Vietnam, Rockhill Asia provides a natural link for retailers, buyers, or businesses aiming to align both sustainability goals and product specifications needs. This collaboration not only ensures compliance but also fosters responsible business conduct, supporting global environmental aspirations.
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