The Problem

Between 1990 and 2020, 420 million hectares of forest were lost worldwide, an area larger than the EU. This deforestation is a major driver of global climate change and biodiversity loss (Source: FAO).

Implementing the Deforestation Regulation (EUDR) presents complex challenges for affected companies.

EU Deforestation Regulation (EUDR) at a Glance

Affected Products

The EUDR applies to the following raw materials: cattle, cocoa, coffee, oil palm, rubber, soy, and wood. Not all products made from these raw materials are covered, only those listed in Annex I of the Deforestation Regulation.

Deforestation-Free Products

Importers and traders must prove that their raw materials were produced on land that was not affected by deforestation or forest degradation after December 31, 2020.

Due Diligence Statement

Companies must specify the geographical location of all plots of land where the relevant raw materials were harvested. Additionally, a risk assessment is required, and measures to mitigate risks must be documented.

Legal Compliance

Products must also comply with the legal provisions of the producing country, including environmental protection and human rights.

Consequences of Violations

From 2025, violations of the EUDR may result in fines of up to 4% of annual sales, confiscation of goods, and claims for damages. Violations can also lead to exclusion from public contracts.

Contact us

E-Mail-Adress: info@veo-partners.de

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