EU stands firm on EUDR anti-deforestation rules despite US, and China pushback

Posted on July 18, 2024   |  

The EU is dedicated to enforcing the EUDR, a significant anti-deforestation regulation, despite resistance from China and the US, the largest forest economies.

The EU's largest right-wing party, the European People's Party (EPP), recently withdrew support from the EUDR, labeling it a "bureaucratic monster."

Annually, the EU imports over 6 million tonnes of pulp, sparking fears that the paper and board industries are not ready for the EUDR, which could lead to supply shortages and price hikes.

The regulation might reroute EU trade through Asia, increasing the use of high-deforestation-risk pulp and paper outside Europe.

Europe's reliance on imported bleached hardwood kraft (BHK) and bleached softwood kraft (BSK) for paper and board production is causing concern among global importers.

Of the pulp used for paper production in Europe, 60% is integrated, and 40% is market pulp, with major imports from Brazil, North America, and Chile.

Brazil's high deforestation risk presents compliance challenges for the EU, as up to 50% of BHK pulp is imported into the EU, and BSK producers face difficulties tracing fibers to forest plots.

Twenty European Agricultural Ministers call for a slowdown or modification of the EUDR due to potential supply disruptions, with Denmark being less affected than France, the Netherlands, Germany, Italy, and Belgium.