Understanding the EUDR: Four topics on the agenda

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:

1. 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.
2. 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. 
3. 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.
4. 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.