From January 1, 2025, the European Union's Regulation against Deforestation and Forest Degradation (EUDR) will come into force. This regulation will require companies exporting to the European Union to demonstrate that their products come from land free from deforestation or degradation while ensuring that harvesting methods comply with local legislation. In addition, they will have to provide the precise geographical coordinates of each parcel of land where the raw material used for these products was harvested.
A wide range of products will be covered, including sawn timber, veneer, fiberboard, pellets, as well as wood pulp and paper. Thus, EUDR compliance concerns the entire supply chain, affecting not only mills receiving wood from forested areas but also their customers, including buyers of chips used in the production of pulp and paper for export.
The Quebec Wood Export Bureau (QWEB), whose mission also includes ensuring access to international markets for wood products, is playing a key role in the Canadian forest industry's transition to EUDR compliance. Given the scale of the challenges posed by this new regulation, QWEB has committed to developing a geolocation platform with the FORAC research center team to support the forest industry.
The European Union Regulation against Deforestation and Forest Degradation (EUDR) aims to ensure that products traded in the European Union, such as palm oil, cocoa, coffee, rubber, livestock, and timber, are not derived from illegal sources, deforestation, or degradation activities. Introduced by the European Union, this regulatory framework represents a crucial step in global efforts to combat deforestation, promote sustainable management of forest resources, conserve biodiversity, and mitigate climate change.
The EUDR introduces a due diligence mechanism requiring importers of the products concerned in Europe to guarantee the traceability of their supply chains. Compliance involves the collection of documents attesting that products are deforestation-free and have been produced in accordance with the legislation of the country of production, and the collection of detailed data on product quantity, country of production, supplier contacts, and geolocation of harvested plots necessary for traceability. This involves using precise latitude and longitude coordinates to geolocate harvested plots. For plots larger than four hectares, it is necessary to provide geo-locally delimited polygons describing from which plot the timber originates. The EUDR requires that company documents and sourcing data be retained for five years from the date of submission of due diligence statements to the EUDR information system.
For the Canadian forest industry, the EUDR represents a business opportunity rather than an obstacle. Compliance with the EUDR can strengthen companies' market presence and align them with global environmental objectives. Canada is recognized for its best practices in sustainable forest management and forest certification. The industry, producer associations, and government have the information and data they need to comply with these regulations. QWEB's mobilization of the Canadian forest industry and its efforts to develop a traceability platform to support the industry are major assets. EUDR compliance can offer a significant competitive advantage, enabling Canada to stand out in international markets.
The action plan starts by raising industry-wide awareness of EUDR requirements, while seminars and meetings are organized to inform industry players about the new traceability obligations, political developments concerning the application of the regulation, and the progress of the action plan. By bringing together the various stakeholders involved - government, industry, producer associations, and traceability experts - QWEB ensures that the entire forestry industry is aligned with the requirements of the EUDR regulation. This cross-sector collaboration is crucial to the success of this large-scale initiative.
Figure 1. Organizations involved in the project
Building on its experience in carrying out risk assessments for forest certification purposes, QWEB is also working on the development of a document containing a risk assessment applicable to the commodities and products concerned by the EUDR. This is a requirement of the EUDR to determine the level of risk in the country concerned, to adjust requirements. This document includes a comprehensive analysis of general forest management information as well as specific information relating to wood fiber production. Based on deforestation data from Canada's forests, it can be assumed that Canada will probably be classified as a low-risk country for EUDR purposes.
A crucial element of EUDR compliance is to ensure the traceability of wood from its origin in the forest. To help companies receiving wood from forested areas meet this requirement, QWEB has partnered with the FORAC research consortium - renowned for its projects on business network performance, its experience in developing cloud-based tools for processing massive data, and its expertise in traceability - to develop a log supply geolocation platform.
The platform will provide the necessary information, including geolocation, to meet EUDR criteria, whether they come from public forests, private forests, other provinces, or even other countries. The implementation of such a platform also enables the centralization and standardization of the information required by the EUDR, and the production of compliance reports, thus simplifying the process for the entire chain, including suppliers to primary processing plants, secondary wood processing plants, and beyond.
Figure 2. The platform's data flow
The cloud-based platform, developed in desktop and mobile formats, is collaborative, scalable, and confidential. The system will always be updated to comply with forest certification and legal requirements, to ensure that exporters fully meet the obligations of their foreign customers.
One of the platform's functionalities is the geolocation of the forests that supplied the wood fiber to the companies, and the description of the harvesting polygons, as required by the EUDR. The geolocation of plots consists of the automated association of GPS points or cadastral numbers of harvested lots, supplied by companies and their suppliers, with polygons describing the perimeter of these plots. To do this, the platform draws on existing cartographic databases, such as management plans for public forests, information on harvested areas, and the cadastre of private properties.
The platform also incorporates a data cross-referencing system that analyzes geolocated harvesting plots with other cartographic databases, such as the register of protected areas, agricultural zones, and certified forests. This cross-referencing makes it possible to identify parcels likely to present a risk of non-compliance with EUDR requirements.
At the end of the geolocation process for harvested plots, companies can generate reports compatible with the EUDR information system via the platform. These reports can be forwarded to their customers, who can also consult them directly on the platform if they have the necessary access rights.
Figure 3. Platform home page
Figure 4. Cutting block management page
A: Pour se conformer au règlement, les entreprises doivent effectuer un contrôle rigoureux de leurs sources d'approvisionnement, en veillant à ce que les bois proviennent de zones non associées à la déforestation ou à la dégradation des forêts. Cela inclut la collecte d’informations détaillées sur l’origine des bois, ainsi que de documents attestant que les récoltes ont été réalisées en conformité avec les législations locales. L’utilisation d’une plateforme de traçabilité, comme la nôtre, peut rendre ce processus plus simple et efficace. La plateforme simplifie la collecte de données et le flux d’informations entre les fournisseurs, les entreprises et les clients, en centralisant de données et en produisant de rapports compatibles au système d’information de l’EUDR.
A: It's a process of risk identification, assessment, and management designed to ensure that products destined for the European market comply with the requirements of the EUDR regulation. To simplify this process at the provincial level, and to support the industry in achieving compliance, QWEB is developing a due diligence document for the whole of Quebec. Based on this due diligence, among other things, the European Commission will classify countries according to their level of risk in terms of deforestation and forest degradation. Data on sustainable forest management and the relatively low rate of deforestation suggest that Canada will probably be classified as a low-risk country.
A: It's essential to make your suppliers aware of this. Even small players need to be compliant to ensure that the entire supply chain meets EUDR requirements. Share useful resources with them, such as our webinars already produced, and invite them to our upcoming outreach activities. Requirements must cover all sources of supply.
A: The platform integrates several databases from different sources (Canadian provinces and American states), centralizing the information needed to geolocate the plots describing the perimeter of each harvesting plot. These tasks are carried out automatically by the platform, simplifying the process for companies. The platform also simplifies the flow of information between suppliers and companies, by enabling suppliers to transmit information on harvested plots via a data-sharing system, while ensuring users control over the confidentiality of their sensitive information.
A: The security protocols on which the platform has been developed guarantee secure connection of users (suppliers, companies, customers) via connections protected by authentication mechanisms. Data input is protected by encryption, and information flows are secured and confidential by access control. Only users with the necessary access rights can transmit and consult a company's procurement information.
