EU Deforestation Regulation (EUDR)
Regulation (EU) 2023/1115 requires that soy, palm oil, cocoa, coffee, cattle, rubber and wood – and products made from them such as leather, chocolate, furniture, paper and tyres – placed on the EU market were not produced on land deforested after 31 December 2020 and comply with the producing country’s laws. The operator submits a due-diligence statement including the geolocation of the production plots, and countries are classed as low, standard or high risk. For suppliers selling these commodities into the EU, plot-level traceability is now a commercial precondition.
Related terms
Traceability (supply-chain transparency)
The ability to document, at every stage from source – mine, farm, forest or refinery – to end user, who processed a raw material, where, and from which lot. It is becoming mandatory in raw material trade because of the EU Deforestation Regulation (EUDR), the Corporate Sustainability Due Diligence Directive (CSDDD), OECD guidance on conflict minerals and recycled-content claims such as ISCC or GRS. Geolocation data, mass balance and digital product passports are key concepts here.
Phytosanitary and veterinary health certificates
A phytosanitary certificate is issued under IPPC standards by the exporting country’s official plant-protection organisation after inspection, confirming that plant products – grain, pulses, seeds, timber, wooden pallets – are free of pests and meet the importing country’s requirements. Animal products such as meat, milk powder, fishmeal and gelatin require an official veterinary health certificate instead. Wooden packaging must be heat-treated and stamped under ISPM 15. Missing or non-compliant certificates lead to detention, destruction or re-export at customs.
Carbon Border Adjustment Mechanism (CBAM)
The European Union’s mechanism that charges imports of iron and steel, aluminium, cement, fertilisers, hydrogen and electricity for the carbon emissions embedded in their production, at a price linked to the EU ETS. The 2023–2025 transitional phase required reporting only; from 2026 authorised declarants must buy CBAM certificates. Suppliers selling these products into the EU now need verified installation-level emissions data to stay competitive.