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EUDR vs EUTR

A Detailed Comparison

Understanding the transition from EUTR to EUDR is vital for grasping the European Union's stance on sustainability. Here's a closer look at the distinctions between these two regulations:
 

1. Relevant Commodities

  • EUTR: Focused exclusively on timber.

  • EUDR: Expands its reach to include timber, cattle, cocoa, coffee, oil palm, rubber, and soya.

 

2. Relevant Timber Products

  • EUTR: Primarily concerns products containing paper, paperboard, timber fiber, or timber (Annex EUTR List).

  • EUDR: Widens its scope to encompass a broader array, including charcoal, tools, timber wool, books, newspapers, kitchen furniture, coffins, seats, and more (Annex 1 EUTR List, Expanded).

 

3. Types of Timber Products Covered

  • EUTR: Applied to timber and other timber by-products circulating within the EU market, whether domestically produced or imported.

  • EUDR: Extends its jurisdiction to include timber and other products imported into the EU, those produced and consumed within the EU, and those exported from the EU.

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4. Operators and Traders

  • EUTR: Defined operators as companies (importers and loggers) placing timber and timber by-products on the EU market (ART 2 (c)). Traders refer to companies buying or selling timber or its by-products on the internal EU market after it has first been placed on the market (ART 2 (d)).

  • EUDR: Redefines operators as any natural or legal person who, in the course of a commercial activity, places timber and timber by-products on the EU market or exports them from the EU market (ART 2 (15)). Traders now encompass any entity in the supply chain, excluding operators, making timber and timber by-products available in the EU market (ART 2 (17)).

 

5. Large Operators vs. SMEs

The European Union Deforestation Regulation (EUDR) distinguishes between large operators and small and medium-sized enterprises (SMEs), defining SMEs based on specific criteria. The regulation builds on the definition found in Directive 2013/34/EU, where an SME is a company that does not exceed the numerical limits of at least two of the following three criteria: 
 

  1. Balance Sheet Total: €20,000,000 (EUR)

  2. Net Turnover: €40,000,000 (EUR)

  3. Average Number of Employees During the Financial Year: 250
     

This definition ensures that SMEs, meeting these criteria, receive distinct treatment under the EUDR, tailoring regulatory requirements to the scale and capacity of these businesses. Meanwhile, larger operators will have different obligations, acknowledging the varying roles they play within the commodities trade associated with deforestation and forest degradation. 

A Comparative Analysis of EU Timber Regulations

In 2013, the European Union made a bold move by introducing the European Union Timber Regulation (EUTR) to combat illegal timber trade and prevent illegally harvested timber from entering the EU market. In response to evolving environmental challenges, the European Union has now ushered in the European Union Deforestation Regulation (EUDR). This article offers an in-depth comparison between EUTR and EUDR, highlighting the significant differences and the EU's commitment to sustainability.

Regulation Background

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  1. The FSC® and PEFC/PAFC certifications set stringent criteria that go beyond forestry management, encompassing local community respect, worker rights, environmental conservation, and biodiversity protection.
     

  2. The EUTR, in place since 2013, already targeted illegal timber, and importers and operators have been implementing due diligence practices for a decade.
     

  3. Competent authorities in various European countries conduct inspections.
     

  4. NGOs play a significant role by being informed, involved, and actively participating in this endeavor.
     

  5. Public procurement guides, such as the WWF guide in France, the 2021 SNDI guide, and initiatives like the Central Point of Expertise on Timber (CPET) in the United Kingdom, provide a framework for ethical transactions.
     

  6. Certified forest managers promote transparency by welcoming observers, researchers, consultants, and NGOs.

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Advancing Toward Sustainability

 

The shift from EUTR to EUDR signifies the EU's commitment to sustainability and environmental stewardship. By extending its regulatory grasp to encompass a more comprehensive range of products and implementing stringent criteria, the EU aims to reduce its contribution to deforestation, safeguard forests, and assure its citizens that the products they purchase are environmentally responsible.

In conclusion, the evolution from EUTR to EUDR showcases the EU's dedication to sustainable and ethical practices within the commodities trade. By broadening its regulatory scope and enhancing provisions, the European Union is taking a decisive step toward a more sustainable future. 

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