The European Union Deforestation Regulation (EUDR) is a notable move towards mitigating deforestation and forest degradation. This regulation mandates that companies ensure their supply chains are deforestation-free, covering commodities like soy, palm oil, beef, wood, cocoa, coffee, and their derivatives. For pulp mills, this means a stringent requirement to trace the origins of their raw materials and prove they do not come from deforested land. Additionally, raw materials (heat and electricity) that generate biofuel also must be carefully regulated and managed to ensure heating plants don't aid in deforestation.
The EUDR goes into effect on December 30, 2025, and non-compliance could mean expensive fines and shutdowns. To avoid this, our experts are here to explain the new requirements and show how pulp mills and heating plants can easily achieve compliance.
Let's take a look.
The EUDR requires companies that work with forest-based raw materials to conduct due diligence ensuring their products do not cause deforestation. This involves tracing the supply chain from the source of the raw materials to the end product. Non-compliance can lead to severe penalties, including financial fines, confiscation of products, and market bans. Each EU member state is responsible for enforcing these regulations, and the penalties can vary widely depending on the country and the severity of the violation.
Pulp mills face unique challenges in complying with the EUDR. Traditional methods of tracking raw materials often lead to inaccuracies and inefficiencies. Manual stock inventories can be error-prone, and without precise tracking, it becomes difficult to prove that the materials are deforestation-free.
For example, a mill relying on spreadsheets to track pulp wood shipments may encounter discrepancies between the reported and actual quantities of wood used. This can lead to difficulties in proving the sustainability of the materials, especially when required to verify that the wood comes from forests managed in line with the EUDR. Without a system that offers real-time traceability, the mill might struggle to provide documentation to regulators, risking fines or a halt in operations.
This is where advanced supply chain management solutions bridge the gap.
ConiferSoft offers a solid solution with its YardManager software, designed specifically for pulp and recycled paper mills. YardManager provides comprehensive traceability and control over mill yards using advanced positioning and weight-tracking technologies. Every movement of pulp wood—from mill gate entry through the mill yard, into the debarking line—is meticulously documented.
YardManager replaces traditional manual tracking methods with real-time, automated tracking. This significantly reduces manual effort and potential errors. The system tracks the exact location and timing of every lift and drop of wood, ensuring precise inventory rotation and minimizing wood degradation losses. By linking each movement to the EUDR reference numbers received at the mill gate, YardManager maintains traceability throughout the process.
BioBiz is another innovative solution from ConiferSoft, designed for heating plants that use raw materials from forests to produce heat and electricity. Biofuel usage is part of the EUDR, as the impact for a heating plant is similar to that of a pulp mill. BioBiz enhances the digitalization of the fuel process, offering real-time insights into delivery volumes and quality, streamlining administrative tasks, and allowing users to track where materials come from and how the come from the supplier to ensure no material added to deforestation. Compliance reports can be easily documented, updated with real-time information, and shared with quality control professionals.
BioBiz offers thorough control over the fuel supply chain, from procurement to delivery. It provides real-time information about deliveries, streamlines invoice verification, and facilitates inventory volume reconciliations. This ensures that heating plants can maintain traceability of their biofuel sources, aligning with EUDR requirements.
The European Union Deforestation Regulation (EUDR) sets a new benchmark for pulp mills and heating plants. It demands strict traceability to ensure materials are sourced responsibly and do not contribute to deforestation. While the regulations may seem daunting, compliance can be streamlined and simplified with the right tools and technology.
YardManager is a game-changing solution for pulp mills, providing real-time tracking and traceability of wood from entry to processing. This not only ensures compliance with EUDR but also optimizes operational efficiency, reducing errors, material losses, and enhancing inventory management. The supply chain management solution transforms compliance from a challenge into a seamless part of daily operations, helping mills avoid fines, shutdowns, and reputational damage while improving their processes. Before, manual tracking with Excel left a margin of error for companies and often slowed down delivery and processing time. With YardManager, real-time stock data and up-to-date mill inventories are made simple.
For those operating heating plants, BioBiz offers a similarly innovative approach. It enhances the digitalization of biofuel management, providing real-time insights into delivery volumes and quality, automating administrative tasks, and maintaining full transparency across the supply chain. This ensures that biofuel sources are accurately traced, and that plants remain fully compliant with EUDR standards without added complexity.
By integrating these solutions into their operations, companies can not only meet the stringent requirements of the EUDR but also improve overall efficiency and sustainability. Compliance becomes more than just a regulatory necessity—it becomes a streamlined, value-adding part of your operational strategy, positioning your business for long-term success in a regulated, environmentally-conscious market. To see this in action, check out our upcoming webinar this October 15, 2024. Click the graphic below to learn more.
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