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The EU Deforestation Regulation (EUDR) and the wood industry – what is required of operators in practice?

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The European Union Deforestation Regulation (EUDR) is a hot topic in many organizations. In the wood industry, the regulation introduces new requirements at different stages of production and trade, particularly with regard to data traceability. From the beginning of 2025, operators in the wood industry will have to comply with the new requirements. For micro and small enterprises, the transition period is extended until June 2025, although the extended transition period does not apply to products that are not covered by the definition of a sustainable supply chain in the EU Timber Regulation.

The main requirement of the regulation is that it prohibits the sale and export of products and raw materials that have contributed in any way to deforestation or forest degradation.

As the requirements of the regulation affect the entire timber value chain, it is worth reviewing the potential changes as early as possible.

What is the deforestation regulation?

The EU Deforestation Regulation affects many sectors – in addition to the wood industry, it is central to sectors such as cattle, cocoa, and coffee production. The main requirement of the regulation is that it prohibits the sale and export of products and raw materials that have contributed in any way to deforestation or forest degradation. This aims to prevent deforestation internationally and to conserve valuable forests in the EU and beyond, which will also help limit greenhouse gas emissions in the longer term.

The main principle is that when timber products – everything from wood chips to finished products – enter the market, they must be guaranteed not to have caused deforestation. A central part of the verification process is a Due Diligence declaration (DD) or a signed certificate that states that the products and raw materials meet the requirements of the regulation and local legislation.

How will the new process work in practice?

First and foremost, the deforestation regulation affects the scope of data that must be recorded, submitted, and retained on the origin of raw materials and products. The nature of the operations determines who is responsible for the DD declaration and the timeframe for the next declaration, as stated by the Ministry of Economic Affairs and Employment.  

Naturally, the data collection and retention requirements force operators to keep data related to all timber activities readily available. So data must be collected and retained using practices that ensure the availability and accuracy of the data at all times. EU provides the Traces system for data entry, which is also used to issue the DD declaration and provide the necessary information. 

Pinja’s information systems Forest, Terminal, and Timber support timber operators in all stages of regulatory reporting. They also enable integration with the Traces system, which facilitates data entry and forwarding in accordance with the requirements. 

Would you like to know more? In our webinar, we describe the meaning of the deforestation regulation for the wood industry and how we can help you comply.

Read more:

The EU Deforestation Regulation poses challenges for the wood industry
The EU Deforestation Regulation (EUDR) and data traceability – how to meet the new requirements?
FSC certification in the wood industry – how to ensure traceability in the supply chain
The EU Deforestation Regulation (EUDR) in the wood industry – what is it about and what needs to be considered?
How to respond to the requirements of the EUDR Deforestation Regulation in the wood industry?

Juha Valkola

Juha Valkola

I’m Pinja’s Forest Business Area Manager, responsible for the overall management of our forest-related products and services. My main goal in this role is to create opportunities for success for our clients and our staff alike – managing the big picture but not forgetting the grassroots and practical forestry work. I spend most of my free time with my family and tinkering with all kinds of things from home automation to house building.

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