Making sense of Euro Union regs in the Australian & NZ context

As the European Union Deforestation Regulation (EUDR) approaches its enforcement date in December 2024, Australian and New Zealand forest industries are keen to understand its implications. Source: Timberbiz The EUDR bans the sale of commodities such as coffee, cocoa, cattle, palm oil, soy, and wood linked to deforestation and forest degradation. This regulation is part of the EU’s broader strategy to combat environmental and climate challenges and ensure that products consumed within the EU do not contribute to global deforestation. Forest certification schemes, such as PEFC (Program for the Endorsement of Forest Certification), are well positioned to meet most EUDR elements. Certification to (AS/NZS 4708-2021) already provides a robust framework to help global supply chains achieve preliminary compliance with the regulation. Certification plays a crucial role in verifying that forest management practices are sustainable and do not contribute to deforestation, ensuring that businesses meet the stringent requirements of the EUDR. However, some definitions and applications of the EUDR do not appear to have catered to an Australian and New Zealand forest industry context. Responsible Wood recently visited New Zealand to engage with local industry stakeholders and provide essential information on the EUDR in light of these developments. The visit included a workshop and training session at the SCION Research Centre in Rotorua to enhance the industry’s understanding and compliance with international certification standards. The workshop offered an in-depth overview of sustainable forest management and chain of custody certification practices in New Zealand and Australia. It served as a platform for knowledge sharing, networking, and professional development within the forestry sector. Attendees gained insights into Responsible Wood’s regional and global activities through PEFC. Simon Dorries, CEO of Responsible Wood, highlighted the significance of these events in fostering a collaborative approach to sustainable forestry, “We aim to support the New Zealand forest industry by providing the latest updates and insights on sustainable forest management and certification. This workshop demonstrates our commitment to promoting best practices and enhancing the industry’s ability to meet global standards.” The training session focused on chain of custody certification, providing valuable information to current and potential certificate holders. Participants learned about the principles of PEFC chain of custody, methods, controlled source risk assessments, claims and label use, and relevant legislation, standards, and codes of practice. This session was particularly timely given the impending EUDR. Matt de Jongh, Sustainability Manager at Responsible Wood, emphasised the importance of this training in light of these new requirements. “With the EUDR set to be enforced from December 2024, it is crucial for our certificate holders to be well-prepared. Our training equips them with the necessary tools and knowledge to ensure compliance with this ambitious legislation, which aims to make global supply chains deforestation-free.” Discussions during the visit also covered the EUDR and the benefits of certification in meeting these new requirements. The visit to New Zealand provided an opportunity to present PEFC International’s EUDR Due Diligence Module, report back on the PEFC International Forest Forum in Paris in May, and listen to stakeholder concerns. The EUDR, part of the EU’s New Green Deal, is the world’s most ambitious policy to address deforestation. It bans the sale of products linked to deforestation and introduces a benchmarking system to assign risk levels associated with deforestation and forest degradation. PEFC, the world’s largest forest certification scheme, has proactively aligned with the EUDR. A series of webinars in March provided certificate holders worldwide with updates on the new legislation. “PEFC certification already addresses sustainability, legality, and due diligence, considering deforestation and forest degradation through our Sustainable Forest Management and Chain of Custody standards,” stated the PEFC Working Group on EUDR. The visit to New Zealand underscored the role of certification in helping businesses understand how they may comply with the EUDR. Certification schemes like PEFC are well-positioned to meet the EUDR’s requirements, as they already consider environmental, social, and economic aspects of sustainable forest management, streamlining compliance processes. Despite the positive strides towards compliance, there are growing concerns within the Australian and New Zealand forest industries regarding the application, endorsement, and definitions within the EUDR. Stakeholders have highlighted that certain aspects of the regulation may be out of touch with regional practices and lack clarity on key issues, such as the distinction between primary and plantation forests. These ambiguities could lead to challenges in interpreting and implementing the regulation, potentially disadvantaging local producers and complicating efforts to achieve certification. These concerns must be addressed to ensure that the regulation is fair and effective in promoting sustainable forest management practices in our region. Authorities will inspect varying percentages of operators and traders based on the risk level associated with their product’s origin. These inspections aim to confirm compliance with the EUDR, ensuring that businesses effectively meet their obligations under the new regulation. Responsible Wood’s visit to New Zealand reinforced the importance of sustainable forest management and certification in combating deforestation. Through workshops and training sessions, Responsible Wood can support the New Zealand forest industry in meeting international standards and complying with new regulations like the EUDR. Certification will underpin sustainable practices and deforestation-free supply chains as the industry progresses.