Brazil’s Paper and Pulp Industry Prepares for EU Deforestation Regulation Compliance

Brazil’s paper and pulp industry asserts that it is well-prepared for the EUDR, having traced its supply chains for over twenty years. While the regulation will not disrupt operations, it necessitates investing in blockchain technology, increasing costs. The postponement of EUDR sees mixed reactions, with concerns about ongoing deforestation remaining. Experts stress the need for vigilance against illegal sourcing, emphasizing the critical abilities of the industry in sustainable practices.

Brazil’s paper and pulp industry has announced its preparedness for the European Union’s deforestation-free products regulation (EUDR), which is set to take effect in late 2025. The industry, having maintained a transparent supply chain for over twenty years, asserts that it does not source from illegally deforested areas. Although the EUDR won’t largely disrupt their operations, fulfilling its requirements necessitates investments in blockchain technology, potentially raising production costs by up to $230 per ton, according to the Brazilian Tree Industry (Ibá).

The EUDR mandates that suppliers demonstrate their products exported to the EU are sourced from legally harvested areas. This is particularly significant in Brazil, where deforestation can be rampant, especially in the Amazon. The postponement of the EUDR by a year was received with mixed reactions. While Ibá views it as an opportunity to ensure a more effective implementation, conservation experts lament the delay, arguing that it perpetuates ongoing deforestation amid a worsening climate crisis.

Ibá claims compliance with EUDR requirements has not altered the fundamental business model for its members but will incur higher production costs ranging between $40 and $230. The sector is responsible for exporting 4.4 million tons of pulp to the EU annually, contributing to various market demands, and has committed to forest preservation practices. Interestingly, while the industry has successfully traced its materials, investments in technology are essential to amplify compliance transparency.

The EUDR aims to combat illegal deforestation by requiring proof that products supplied to the EU are not derived from unlawfully deforested areas. With increasing concerns about commodities trade linked to deforestation, this regulation is crucial for ecosystems like the Amazon. Brazil’s paper and pulp industry, largely compliant with regulations due to existing supply chain practices, is now urged to enhance its traceability through blockchain technology. The industry must navigate the balance between maintaining market competitiveness and ensuring sustainable practices, especially in light of evolving European legislation. Experts have raised caution that delays in implementing such pivotal regulations may hinder progress against illegal deforestation, which the EUDR is intended to combat, exacerbating the global climate crisis. The future of the Brazilian paper and pulp industry hinges on its adaptability to these new regulations and its commitment to sustainable forestry practices.

In summary, Brazil’s paper and pulp industry is gearing up for the EUDR’s implementation while emphasizing its longstanding commitment to sustainable practices. Although projections indicate increased production costs due to compliance with blockchain technologies, the industry is positioned to maintain its operations without significant disruption. However, the mixed reactions to the regulation’s postponement highlight the urgency of addressing deforestation issues and maintaining a proactive approach to climate change mitigation. The industry’s ability to navigate these changes effectively will be crucial in the coming years, both for economic stability and environmental conservation.

Original Source: news.mongabay.com