EUDR in the forest sector

A new era for timber in Ukraine and beyond

The global timber industry is undergoing a significant transformation, driven by increasing awareness of climate change and biodiversity loss. At the forefront of this shift is the European Union Deforestation Regulation (EUDR), a landmark piece of legislation that is reshaping how wood and wood products are sourced and traded. 

What is the EUDR?

The EUDR, which entered into force on June 29, 2023, is designed to ensure that products placed on or exported from the EU market do not contribute to deforestation or forest degradation anywhere in the world. It replaces the previous EU Timber Regulation (EUTR) and significantly expands its scope, covering not only timber but also a range of other commodities like cattle, cocoa, coffee, palm oil, rubber, and soy, and their derived products.

Key requirements under the EUDR include:

Deforestation-free: Products must originate from land that has not been subject to deforestation or forest degradation after December 31, 2020.

Legality: Products must be produced in accordance with the relevant laws of the country of production, encompassing environmental regulations, land-use laws, and labor standards.

Due diligence: Companies (operators and traders) placing these products on the EU market or exporting them must implement a robust due diligence system. This involves: 

Information Collection: Gathering detailed and verifiable data, including precise geolocation coordinates of production areas.

Risk Assessment: Analyzing the likelihood of deforestation or legal violations within their supply chains.

Risk Mitigation: Taking proactive measures to address identified risks, such as requiring additional documentation, conducting audits, or sourcing from certified suppliers.

The impact on Ukrainian timber

For Ukrainian timber companies, the EUDR presents both challenges and opportunities. Historically, concerns about illegal logging and transparency have sometimes clouded the perception of Ukrainian timber. However, recent developments are painting a much more positive picture.

Crucially, Ukraine has been recognized as a low-risk country under the EUDR. This significant achievement reflects the ongoing reforms and digital transformation within Ukraine's forestry sector. Initiatives such as the electronic issuance of felling tickets and certificates of timber origin, ensuring maximum traceability of all logging activities, have been instrumental in building trust and demonstrating compliance.

This "low-risk" status offers several advantages for Ukrainian exporters:

– Reduced regulatory burden: simplified due diligence procedures for products sourced from Ukraine.

– Enhanced market access: easier entry into the lucrative EU market.

– Increased trust: stronger confidence in Ukraine's forest resource management system among European buyers.

While the low-risk designation simplifies some aspects, it is vital to remember that traceability and due diligence remain paramount. All companies obligated under the EUDR must still maintain robust systems to collect, store, and analyze supplier data, ensuring complete transparency from the forest to the final product.

Looking ahead

The EUDR's full applicability comes into effect on December 30, 2025, for large businesses and June 30, 2026, for micro and small enterprises. While the journey to complete compliance requires continuous effort and adaptation, Ukraine's low-risk status provides a strong foundation.

The EUDR represents a powerful step towards a more sustainable global timber trade. By prioritizing deforestation-free and legally sourced products, we can collectively contribute to protecting the world's precious forests and fostering a more responsible economy. LIGNO is proud to be part of this crucial transition, ensuring that our timber products meet the highest standards of sustainability and responsibility, both for our customers and for the planet.