Brazil’s Pulp Industry Prepares for EUDR Compliance through Blockchain Investments
Brazil’s paper and pulp industry has expressed confidence that the EUDR, effective in late 2025, will not disrupt operations, as it has traced its supply chains for over two decades. However, meeting the regulation’s requirements may raise production costs significantly, prompting investments in blockchain technology. The industry must navigate the need for environmental compliance while addressing concerns from experts regarding ongoing deforestation challenges.
Brazil’s paper and pulp industry asserts that the impending European Union Deforestation-Free Products Regulation (EUDR), effective in late 2025, will not disrupt its operations. The industry has maintained a supply chain tracing system for over twenty years, ensuring no sourcing from illegally deforested areas. The EUDR, which requires documentation proving that EU-bound products are not derived from such illegal deforestation, is anticipated by industry experts to mitigate illegal deforestation in the Amazon.
However, meeting certain EUDR standards will necessitate substantial investments in technologies such as blockchain, potentially raising pulp production costs by as much as $230 per ton. The Brazilian Tree Industry (Ibá) highlighted that these adjustments would increase operational costs despite the EUDR’s alignment with industry practices.
As Brazil exports approximately 4.4 million tons of pulp annually to the EU, the country’s cultivated forestry practices involve reforestation efforts, comprising over 10 million hectares designated for sustainable tree cultivation. Furthermore, 6.9 million hectares of native forests are preserved, enhancing carbon sequestration and combatting climate change. The industry is committed to international environmental certifications, with third-party audits ensuring compliance and transparency within operations.
While the EUDR’s postponement was met with mixed responses—Ibá viewing it as an opportunity for a more gradual adaptation and environmental experts urging immediate action against deforestation—industry leaders such as Suzano have noted their longstanding adherence to sustainable forestry practices, including advanced traceability systems. Suzano plans to implement in-house blockchain solutions for better compliance tracking, emphasizing their operations are based exclusively on previously altered lands and do not utilize wood from deforested areas since July 2020.
In contrast, environmental advocates stress the urgency of immediate action against deforestation, indicating that delays in regulation could exacerbate ongoing ecological crises. The evolving guidelines of the EUDR reflect an intent to foster sustainable industry practices, though experts warn that timely compliance and implementation are critical to avert further deforestation.
The European Union Deforestation-Free Products Regulation (EUDR) aims to enforce stricter regulations on the import of products linked to illegal deforestation. It reflects growing international concern over sustainability and climate change, especially concerning commodities produced in regions prone to environmental degradation. Brazil, a significant exporter of pulp to the EU, has responded by enhancing supply chain transparency and investing in technologies like blockchain to meet the new requirements. The regulation necessitates certifying the source of exported materials, making compliance vital for the industry’s ongoing operations in European markets.
In summary, Brazil’s paper and pulp industry is preparing for the EUDR through long-established supply chain tracing and planned investments in technology. The industry’s commitment to sustainable practices and compliance with environmental standards reflects an adaptive response to evolving international regulations. However, the urgency underscored by environmental experts highlights the critical need for immediate action against illegal deforestation. Ultimately, the successful implementation of the EUDR will rely on collaboration between industry stakeholders and regulators to protect ecological integrity while enabling responsible economic growth.
Original Source: news.mongabay.com
