Did you know that the loss of tropical primary forests in 2023 was 3.7 million hectares? This is equivalent to the loss of almost 10 football pitches per minute. All this forest loss resulted in 2.4 gigatonnes (Gt) of carbon dioxide emissions in 2023, equivalent to almost half of the annual fossil fuel emissions in the United States. In the face of such severe deforestation, the EUDR is set to secure the way industries source, use and manage wood-based products, with significant implications for the logistics and supply chain sectors.
Wood packaging, from pallets and crates to protective packaging, plays a key role in global supply chains. However, as the EUDR tightens controls on deforestation and illegal logging practices, companies are under increasing pressure to ensure that their wood packaging is sourced responsibly and used sustainably.
In this article, we will look at how the EUDR will affect the sustainable use of wood packaging throughout the supply chain.
What does the EUDR directive cover?
On 29 June 2023, the EU Deforestation Regulation (EUDR for short) was established to combat forest degradation worldwide. For most companies, it will be effective for large enterprises as of December 30, 2025, and for micro and small enterprises as of June 30, 2026. Passed to replace the EU Timber Regulation (EUTR - EU Timber Regulation), the EUDR extends its reach by regulating not only timber, but also other commodities that pose a threat to forests, such as soy, palm oil and, importantly, wood-based products, including packaging materials.
Primary aims and objectives of the EUDR
The primary objective of the EUDR (EU) 2023/1115 is ‘to reduce greenhouse gas emissions and biodiversity loss by promoting the consumption of “no-deforestation” products and reducing the EU's impact on global forest degradation.’
The leading cause of these negative phenomena is the expansion of agricultural land, linked to the production of commodities such as cattle, timber, cocoa, soya, palm oil, coffee, rubber, and some of their derived products, such as leather, chocolate, tyres, or furniture. As a significant economy and consumer of these commodities linked to deforestation and forest degradation, the EU is partly responsible for the problem and wants to solve it.
The new rules aim to:
- Avoid a situation where the products mentioned above bought by Europeans contribute to deforestation and forest degradation in the EU and globally.
This requires ensuring that products come from land that is not deforested after 31 December 2020. They must also comply with the country's regulations in which they are produced.
- Reduce carbon emissions from the EU's consumption and production of relevant goods by at least 32 million metric tonnes per year.
- Address deforestation caused by the expansion of agriculture to produce regulated goods and forest degradation.
The above guidelines have been developed by the European Commission to provide national authorities, EU operators, and other stakeholders with information on implementing the EU Non-Deforestation Regulation (EUDR).
Wood packaging in the spotlight: What is the importance of the EUDR?
Wooden carriers, including pallets, crates, and containers, provide a durable solution for safely transporting goods over long distances with reusability. However, the sourcing of wood for these materials is currently under scrutiny due to the environmental impact associated with deforestation.
If wood packaging is sourced and managed responsibly, it is a highly sustainable option. Wood is biodegradable, recyclable, and reusable, reducing the need for disposable materials. In addition, sustainably managed forests act as carbon sinks, offsetting carbon emissions and contributing to the fight against climate change.
EUDR compliance: challenges and opportunities for the wood packaging industry
Compliance with EUDR regulations will require companies to implement rigorous processes for tracking wood and verifying that it does not contribute to deforestation. It will require significant changes to many companies' existing supply chain management systems.
Another challenge is that companies will need to invest in new technology to more easily identify the source of the wood or hire additional staff to manage compliance. However, it is worth seeing these costs as an investment in long-term sustainability and competitiveness in the market.
While the EUDR poses challenges, it also offers opportunities for innovation. Companies that proactively adopt sustainable practices are sure to attract environmentally conscious customers. Sustainable use of packaging may include developing new materials, improving recycling programs, or adopting circular economy principles to reduce waste.
Impact of the EUDR on innovation and implementation of green logistics
The EUDR supports a circular economy by encouraging companies to reuse and recycle packaging rather than relying on the continuous use of new resources. For the wood packaging industry, this means creating systems to facilitate the return and refurbishment of pallets, crates, and other wood products.
By extending the life cycle of wood products and reducing the need for new raw materials, companies can minimize their environmental impact and align more closely with the principles of a circular economy.
This can include investing in more durable wood packaging or developing new methods of refurbishing and reusing pallets, crates, or extensions.
How does Rotom comply with the EUDR directive?
At Rotom Group, we currently only purchase wood from PEFC-FSC or state-owned forests. To ensure compliance with the new regulations, a project team has been established to ensure timely implementation of the reporting process for the EUDR and our customers.
This includes, among other things, adjusting our internal supply chain tracking and even more detailed analysis of our compliant suppliers.
It is also worth noting that the EUDR Directive does not apply to used products or products made from recycled materials. Rotom's offer also includes such products.
Below, we will discuss three essential services that Rotom, an experienced and aware packaging supplier, applies to companies to make packaging management more sustainable.
The role of packaging recovery in sustainable logistics
Packaging recovery involves collecting used packaging, repairing it if necessary, and reintroducing it into the supply chain. This process is critical to reducing waste and conserving resources, which is a crucial objective of the EUDR. By recovering and reusing wooden packaging, companies can minimize reliance on new materials, helping to reduce deforestation.
To effectively recover and reuse wood packaging, companies must establish clear guidelines and systems for collection, repair, and redistribution. This can include partnering with Rotom as a sustainable logistics provider, investing in packaging repair, and using technology to track the condition and location of packaging materials. In this way, companies can reduce costs, comply with the EUDR, and contribute to maintaining a sustainable supply chain.
Environmental benefits of wooden carriers pooling
Pooling of pallets, pallet collars, or other packaging is a system in which companies share a common pool of media rather than owning their own. This model reduces the need for a company to purchase and maintain its own packaging, leading to more efficient use of resources and less waste. Packaging pooling is managed by a third-party operator (Rotom), which provides assurance that pallets are regularly maintained, repaired, and delivered for reuse.
Pallet pooling fits well with the EUDR sustainability goals. The longer we use each wooden package, the more we reduce the need for new wood and lower the carbon footprint of logistics operations.
How does the packaging repair service align with the EUDR objectives?
A packaging repair service offers many benefits as it allows you to keep your pallets (or extensions, crates) in the best possible condition instead of buying new carriers. This reduces the environmental impact of producing new pallets and ensures that all pallets in circulation meet the legal standards.
At Rotom, we repair Euro pallets in accordance with the EPAL licence so that they are 100% serviceable and interchangeable. This is sustainable packaging management, as regular repair of wooden packaging extends the life of products, saving on tree felling and energy that would otherwise be used to produce and transport new carriers.
Changes for a sustainable future
The EUDR represents a significant step forward in global efforts to combat deforestation and promote the sustainable use of natural resources. For the wood packaging industry, this regulation presents both a challenge and an opportunity. If companies choose to adhere to sustainability practices, they are not only then sticking to the regulation, but positively impacting the entire ecosystem we use.
If you would like to work with an experienced logistics partner on sustainable supply chains, we invite you to contact us. Our specialists will be happy to answer questions and provide guidance on the conscious use of packaging.
