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How Timbeter Can Help Companies Comply with EU Deforestation Regulation

October 23, 2023
How Timbeter Can Help Companies Comply with EU Deforestation Regulation

The fight against global deforestation is gaining momentum, and the European Union (EU) is at the forefront of this movement. Recognizing the impact of its consumption patterns on global deforestation, the EU has been mulling over regulations to ensure products consumed within its borders do not contribute to this global challenge. Main objective of the EU Deforestation Regulation is to avoid the listed products, including timber products, europeans buy, use and consume, contributing to deforestation and forest degradation in the EU and globally. The aim is to address global deforestation driven by agricultural expansion, as well as by forest degradation. 

EU Deforestation Regulations (EUDR) sets the key compliance requirement – verifiable geolocation of the products imported to EU market, for assuring that the products are not coming from deforested areas. If the due diligence reports lack clear proof of the origin of the products which fall under the EUDR regulation, it is not allowed to import these products into the EU market. It is important to note, that despite the fact that EUDR entered into force on 29th June 2023, the cut off date for deforestation and forest degradation is 31 December 2020. This means that the EUDR prohibits the importation of listed products produced on land that has been sourced from deforested or forest-degrading areas since December 31, 2020. Companies, including many Timbeter’s clients who already have verifiable geolocations for their products, have great advantages for compliance.

Main motivation for the market operators to avoid EUDR non-compliance is introduced under the list of potential penalties. For example, fines of up to 4% of the total operator’s EU-wide turnover or confiscation of revenues gained from transactions with the relevant products concerned, or exclusion for up to 12 months from public procurement processes and from access to public funding. 

With companies gearing up to adapt to these regulations, precision forestry digital tools like Timbeter are proving to be indispensable. Here’s how:

Requirement Number One: Traceable Geolocation

A key aspect of the EUDR revolves around the traceability of the origin, geolocation of the timber products. All plots of land involved in a shipment must be geolocated. Timbeter offers a solution by providing an immutable digital record of where logs are sourced, counted, and measured. Real-time on plot measurements can be linked with historical geospatial data. This level of transparency and traceability is precisely what companies need to prove the origin of the products in the due diligence reports. 

Verifiable Digital Due Diligence Report

According to the EUDR, key requirement number two is that each shipment to the EU needs to have a separate due diligence report, where data needs to be provided in an open and machine-readable format. Information has to be adequately conclusive and verifiable that the relevant products are deforestation-free. Timbeter’s AI solution is 100% paper-free and keeps efficient real-time records of each and every shipment. Timbeter fits easily into a company’s due diligence process, ensuring the timber used does not contribute to deforestation. All the data collected is available for auditing made by third parties. 

Reducing Emissions

One of the EUDR objectives is to reduce carbon emissions caused by EU consumption and production of the relevant commodities by at least 32 million metric tons a year. In addition to increased transparency of the value chain, Timbeter helps to reduce CO2 emissions through optimized transportation. 

Promoting Sustainable Logging

Sustainability is more than a buzzword; it’s a necessity. Timbeter, with its accurate measurements, ensures companies are not wasting any resources. McKinsey in the article about precision forestry refers to research that suggests, for example, that 3 to 4 percent of sawlogs (the most valuable part of the tree) are unnecessarily downgraded to pulplogs due to imprecise measurement of logs by harvesting machine sensors. By optimizing logging practices, businesses can align more closely with the EU’s sustainability goals.

Combating Illegal Logging

Illegal logging remains a pressing concern in the fight against deforestation. Illegal logging accounts for 50-90% of all forestry activities in key producer tropical forests, such as those of the Amazon Basin, Central Africa and Southeast Asia, and 15-30% of all wood traded globally. By integrating tools like Timbeter, companies can present a clear case of sourcing timber legally and sustainably, thus distancing themselves from harmful and illegal practices. Also, technology helps governments to put better controlling and monitoring practices in place to fight against illegal logging. 

Building Stakeholder Trust

Beyond regulations, there’s an increasing demand from consumers and stakeholders for deforestation-free products. Adopting transparent tools like Timbeter not only ensures regulatory compliance but also helps companies build trust and show their commitment to preserving the planet.

In Conclusion

As the world moves towards more sustainable practices and stricter regulations, having the right tools becomes essential. Timbeter, with its wide variety of features, becomes essential for companies in the timber industry, guiding them towards a sustainable and compliant future.

Stay informed and make the right choices for our planet and your business. Adopt tools that not only help you comply with regulations but also show your commitment to a greener future.

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