How the EU's New Registry is Tackling Deforestation

The European Commission has launched the Deforestation Due Diligence Statement Registry to boost transparency and sustainability across global supply chains.

This new platform is central to the EU Deforestation Regulation (EUDR), which sets high standards for companies to demonstrate that their products are free from links to recent deforestation.

As of December 2024, all businesses operating in or importing into the EU must use this registry to verify their supply chains and confirm that their products comply with these environmental regulations.

The online registry provides companies with various digital tools designed to ease the compliance process.

Among its features are interactive map-based tools for identifying the origins of products, options to upload geolocation data in bulk and a centralised dashboard to manage and track Due Diligence Statement (DDS) submissions. Larger businesses can benefit from API support, which enables automated, machine-to-machine data exchanges and makes high-volume reporting easier and more efficient.

To streamline the documentation process, EUDR-compliance software providers, such as OPTEL, are integrating their systems with the registry. These integrations help businesses fulfil the EUDR requirements while making traceability more manageable.

OPTEL’s Optchain platform, for instance, links seamlessly with the registry, offering full traceability, AI-driven risk analysis and corrective action plans to address risks. The software’s API connection to the EU’s system allows for a simplified, efficient approach to manage EUDR documentation.

Other platforms, such as Prewave, utilise AI to assess compliance risks across supply chains. Prewave’s system automates supplier engagement and uses data analysis to monitor for any deforestation links in real-time.

Its integration with the EU’s TRACES certification platform helps ensure a comprehensive approach to EUDR compliance, reducing false positives and enhancing operational efficiency.

EUDR: The EU’s effort to combat deforestation

The EUDR aims to address the root causes of deforestation by focusing on supply chains in industries linked to forest degradation.

Targeting commodities like cocoa, rubber and palm oil, the regulation requires businesses to verify that these goods are not tied to recent deforestation and to demonstrate traceability throughout their supply chains.

The Commission hopes that by imposing these regulations, the EU will minimise its indirect contributions to global deforestation.

This regulatory push aligns with broader EU strategies like the European Green Deal and the Farm to Fork Strategy, which promote sustainable agriculture and environmental protection.

The EUDR's goal to cut carbon emissions by 32 million metric tonnes annually also aligns closely with the EU’s wider climate action and biodiversity goals.

The new regulation replaces the EU Timber Regulation, which primarily focused on illegal logging.

EUDR expands this scope significantly by requiring businesses to ensure products entering the EU are sourced without impacting forests. Larger companies are expected to comply with these rules immediately, while smaller businesses have a gradual phase-in period to adjust to the new standards.

Navigating EUDR’s compliance requirements: Challenges and solutions

For businesses of all sizes, the EUDR presents unique challenges. Smaller suppliers and farmers, in particular, may find the new regulations difficult to meet due to limited resources. Many of these smaller producers will face added pressure to provide geolocation data and legal compliance records, increasing their operational complexity.

Dr Chandra Silori, Deputy Executive Director of RECOFTC, speaks to these difficulties, particularly for smallholders: “We see this regulation as promising for reducing deforestation and forest degradation … but there are many challenges on how these will be applied on the ground, especially for smallholders.”

The administrative burden also extends to SMEs within larger company supply chains. 

Fevia’s Ann Nachtergaele warns of the potential impact this may have on smaller suppliers, particularly due to the delayed release of the EU’s registration system. 

She explains, “The European registration system will not be available until mid-December. This can have consequences on the availability of certain raw materials and their price as large companies are then obliged to send questionnaires to the many small companies, which quickly become overwhelmed.”

The registry and integrated tools, however, aim to reduce these burdens by allowing companies to automate their compliance processes, access corrective actions and streamline their DDS submissions. With tools like Prewave’s risk assessment software and OPTEL’s supply chain traceability solutions, businesses can monitor for potential deforestation risks while addressing regulatory requirements efficiently.

Despite the challenges, the EUDR signals a significant shift towards increased accountability in supply chains. 

It reinforces the EU’s commitment to tackling deforestation, aiming to make Europe a leader in responsible and transparent global sourcing. By setting high standards for transparency, the EUDR offers proactive companies an opportunity to lead by example, with potential benefits for those who are early adopters of these practices.

For businesses committed to sustainability, this regulation is a chance to shape their operations around environmentally friendly practices. 

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