The EU Deforestation Regulation (EUDR) is set to become one of the most significant sustainability regulations affecting the global pulp, paper and packaging industries. As implementation approaches, companies supplying the European market are accelerating efforts to improve supply chain traceability, strengthen due diligence processes and demonstrate that products are free from deforestation.

The regulation replaces the previous EU Timber Regulation (EUTR) and expands compliance requirements well beyond timber, covering several agricultural commodities and their derived products, including pulp, paper and wood-based packaging.

What Is the EUDR?

Formally known as Regulation (EU) 2023/1115, the EUDR aims to reduce the European Union’s contribution to global deforestation and forest degradation.

The regulation requires companies placing covered products on the EU market, or exporting them from the EU, to demonstrate that their products:

• Are deforestation-free
• Comply with the laws of the country of production
• Are supported by comprehensive due diligence documentation

The EU estimates the regulation could reduce greenhouse gas emissions by at least 32 million tonnes of CO₂ equivalent annually while helping protect global biodiversity.

Products Covered by the Regulation

The EUDR applies to seven commodities considered major drivers of deforestation:

• Cattle
• Cocoa
• Coffee
• Palm oil
• Rubber
• Soy
• Wood

For the pulp and paper industry, the regulation also covers a wide range of derived products, including:

• Market pulp
• Paper products
• Packaging materials
• Tissue products
• Wood panels
• Furniture
• Numerous other wood-based products listed in Annex I of the regulation.

New Due Diligence Requirements

Companies acting as operators under the regulation must complete extensive due diligence before placing products on the EU market.

Key requirements include:

• Collecting precise geolocation coordinates for production areas
• Demonstrating that raw materials were not produced on land deforested after 31 December 2020
• Verifying compliance with local environmental, land-use and labour laws
• Submitting a Due Diligence Statement through the EU’s Information System before products enter the market

The regulation adopts a risk-based approach, with countries classified as low, standard or high risk, determining the level of due diligence required.

Timeline for Implementation

Following a one-year postponement approved by the European Union, the regulation will apply according to company size.

The current implementation schedule is:

• 30 December 2026 — Large and medium-sized operators
• 30 June 2027 — Micro and small enterprises, with certain exceptions

The additional time is intended to help businesses prepare for the extensive traceability and reporting requirements.

Major Impact on the Paper Industry

For pulp and paper manufacturers, compliance extends well beyond certification.

Companies will need to strengthen:

• Fibre traceability systems
• Supplier verification processes
• Digital record management
• Risk assessment procedures
• Supply chain transparency

Although certification schemes such as FSC and PEFC can support due diligence efforts, they do not automatically demonstrate compliance with the EUDR. Companies remain legally responsible for conducting their own risk assessments and submitting due diligence statements.

Global Supply Chains Under Pressure

The regulation also affects companies outside Europe.

Suppliers in Asia, North America, South America and other regions exporting pulp, paper, packaging or wood products into the EU must provide European customers with detailed production information, including geolocation data and evidence supporting legal and deforestation-free sourcing.

As a result, many producers are investing in digital traceability platforms, satellite monitoring, geographic information systems (GIS) and supplier engagement programs.

Sustainability Becoming a Competitive Requirement

The EUDR reflects a broader shift in global trade, where environmental performance is becoming an increasingly important market access requirement rather than a voluntary sustainability initiative.

For the pulp and paper industry, companies capable of delivering transparent, verifiable and deforestation-free supply chains are expected to strengthen their competitiveness as regulatory expectations continue to evolve across international markets.

Last Updated on 26/06/2026 by Jota Machinery