New publication compares the expiring EU Timber Regulation with the new EU regulation on deforestation-free supply chains

The EU adopted the regulation on deforestation-free supply chains (EUDR) to reduce its influence on global deforestation and forest degradation. 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. The EUDR will replace the EU Timber Regulation (EUTR) which only covers the illegality of timber products. The EUDR concept adopts the basic approach of the EUTR, but aims to overcome weaknesses that left loopholes for non-compliant enterprises.

The study compares the specifications of both regulations, to examine whether and how weaknesses of the EUTR have been addressed by its successor regulation. Impacts for enterprises in the wood sector and control authorities in the EU were discussed. The study concludes that the EUDR closes some important loopholes that previously existed. This is due to three elements in particular: the introduction of mandatory digital registration combined with control options for customs authorities; the increase in liability obligations for EU internal trade; and the reduction of EU member states’ leeway in shaping national legislation and enforcement. However, the EUDR creates considerable additional burdens for enterprises and control authorities. This is due to both significantly expanded reporting requirements and an enormous extension of the scope of application. It remains open how strongly the EUDR will affect the procurement costs of EU enterprises and subsequently their product prices – and to what extent this may trigger trade shifts in favor of less regulated countries.

• Köthke M, Lippe M, Elsasser P (2023) Comparing the former EUTR and upcoming EUDR: Some implications for private sector and authorities. Forest Pol Econ 157:103079, DOI:10.1016/j.forpol.2023.103079

• Project:
  Deforestation-free and legal supply chains