The European Union's Deforestation Regulation (EUDR), which will enter into force at the turn of the year on 30 December 2025, requires that companies importing timber and wood-based products to the EU market, as well as their exporters outside the EU, guarantee that their products do not cause deforestation or deteriorate the condition of forests. Companies must follow the Due Diligence process to ensure that the products originate from legal areas and sustainably managed forests. In addition, companies need to assess and mitigate deforestation risks and ensure that their supply chain information is compliant with national legislation and EU requirements.
“With the new regulation, the European Union wants to safeguard the global sustainable use of forests and prevent companies from exporting or placing on the market products that cause deforestation. We are happy to support these goals,” says Janne Nissinen, Director responsible for the development of Metsä Group's wood procurement process.
In addition to sawn timber and pulp, the EU Deforestation Regulation (EUDR, (EU) 2023/1115) also applies to cocoa, coffee, soy and rubber, among others. However, the regulation does not apply to biochemicals such as tall oil and turpentine.
The regulation increases the traceability of the supply chain
Metsä Group has previously collected timber origin data from forests to mills in accordance with the EU Timber Regulation (EUTR). However, the new deforestation regulation requires more careful monitoring of the supply chain and also more extensive information management.
"We know the origin of the wood we use, as we source our wood raw materials from northern commercial forests, and our operations do not cause deforestation. For us, the new deforestation regulation means above all that we increase the traceability of the value chain with a new information system and communicate more efficiently on sustainability topics,” says Marko Ruottinen, Sustainability Manager at Metsä Fibre.
The new EU Due Diligence process requires notification in the EU's TRACES (Trade Control and Expert System) system, which creates a reference number for the product batch. The reference number allows authorities to monitor and trace the raw material value chain. A new reference number is required from operators each time a new batch of products is placed on the market or exported at different stages of the supply chain. Therefore, for example, the value chain needs its own reference number for wood raw material, pulp, paper board and packaging.
"The use of the reference number is an essential part of fulfilling the obligation and the traceability of the origin of the products. Therefore, reference numbers must be passed on to the next actors in the supply chain,” says Ruottinen.
Metsä Fibre customers receive reference numbers automatically
Metsä Group has developed its own system for managing the EUDR reference numbers of raw materials to be bought and sold. The application of the regulation will start on 30 December 2025, but the system will be introduced already during this year.
"We have automated the process so that our system sends our customers the reference number required by the deforestation regulation when ordering. The reference number is a guarantee that the batch is compliant,” says Ruottinen.
Partners are also required to fulfil the obligations of the Deforestation Decree and provide reference numbers in connection with the sale of the product.
“We need to be able to ensure the compliance of the raw material we buy.“
An important part of sustainability work and the sustainability of the industry
Metsä Fibre closely follows the guidelines from the European Commission. Finnish national legislation related to deforestation will be completed by autumn 2025. All current information and guidelines for customers and partners are compiled on Metsä Fibre's EUDR website.
"We intend to integrate the monitoring and reporting of the Deforestation Decree into our daily work and sustainability work, and to be actively involved in promoting this general good sustainable practice in the industry," Nissinen sums up.
What does the new Deforestation Regulation require of products?
- Products do not cause deforestation.
- The production of the products is in accordance with the legislation of the country of production.
- The products are covered by a due diligence guarantee.
