EUDR, the law on deforestation-free products, will take effect on December 30, 2024

This comes after the European Union (EU) implemented the Carbon Border Adjustment Mechanism (CBAM), effective from October 2023, to prevent the importation of goods with high greenhouse gas emissions into member states. 

The first five targeted products under this regulation are electricity, cement, fertilizers, steel, and aluminum, which are currently in a transition phase and will be fully enforced starting January 1, 2026.

The EU’s progress on trade regulations and sustainable development remains stringent. By the end of 2024, the EU will begin enforcing the EU Deforestation Regulation (EUDR), covering seven product categories: cocoa, coffee, soybeans, wood, palm oil, rubber, and cattle. 

This regulation will impact Thailand, especially the rubber industry, as Thailand is the largest exporter of rubber in the world. Thai businesses will need to be prepared to verify and confirm the source of their products throughout the supply chain, ensuring they are not linked to deforestation.

Getting to Know the EUDR:

• EUDR (EU Deforestation Regulation) is the European Union’s law on deforestation-free products. It was enacted on June 29, 2023, and will be practically enforced from December 30, 2024, onward.
• The EU is considered a global leader and model in environmental protection, and its regulations often set an example for other countries to follow with similar laws.
• The EUDR covers seven product categories: cocoa, coffee, soybeans, rubber, palm oil, cattle, and wood, as well as processed products made from these materials, such as wooden furniture, paper, and tires.
• The regulation applies to both operators and traders who sell goods in the EU market. Products must meet three conditions:

• The products must not originate from deforested areas.
• The production process must comply with the laws of the producing country.
• Products must undergo due diligence, which includes checks and assessments.

• Thailand exports six types of products that fall under the EUDR measures: rubber, wood, palm oil, cocoa, coffee, and soybeans.

Source : Office of Trade Policy and Strategy (TPSO) www.tpso.go.th,Department of Foreign Trade
Photo : Jcomp