EU Deforestation-free Regulation (EUDR)
EU Deforestation-free Regulation (EUDR)
EU Deforestation-free Regulation (EUDR)
The EU Deforestation-free Regulation (EUDR), adopted in November 2021, replaces the EU Timber Regulation (EUTR) and aims to ensure that products entering or leaving the EU do not contribute to deforestation or forest degradation.
Starting 30 December 2024 (or 30 May 2025 for small businesses), companies must ensure that commodities like timber, furniture, palm oil, rubber, cocoa, coffee, soya, and cattle are sourced legally and are fully traceable to deforestation-free areas.
Malaysia is actively working to align with EUDR requirements to maintain access to the EU market and uphold its commitment to sustainable forestry.
EUDR Key Requirements
| Requirement | Details |
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Prohibition |
Products derived from deforestation and forest degradation, illegal harvesting and those not covered by a Due Diligence Statement (DDS). |
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Due Diligence |
Due Diligence Statement must be produced by every operator except SME Operators. |
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Record-keeping |
5 years of record must be kept by operators and traders and must be provided to competent authorities upon request.
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Cut-off Date |
No product derived from land subject to deforestation and forest degradation after 31 Dec 2020 is allowed.
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Traceability |
Geolocation (GPS coordinate) of harvesting plot with perimeter polygon (multiple points for plots of land of >4 hectare; single reference point for <4 hectares).
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In the case of a composite product (e.g., panel product and furniture), to list every possible source.
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Species |
A requirement to disclose the scientific name of the species used in the product.
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In the case of a composite product (e.g., panel product and furniture), to list every possible species used.
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Country Benchmarking |
Assessment on country risk by the European Commission (i.e., low, standard or high risk).
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Others |
Local laws compliance for land use rights, forest management, labour rights, human rights, Free, Prior and Informed Consent (FPIC), and tax. |
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Third party Certification (e.g., PEFC or FSC) does NOT replace EUDR Due Diligence Requirements.
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EUDR Compliance & Enforcement
Under the EU Deforestation-free Regulation (EUDR), companies must ensure full traceability of products to their exact point of origin and prove they are deforestation-free and legally produced according to the laws of the source country.
Businesses must implement a due diligence system
- Risk analysis to identify deforestation risks in the supply chain
- Mitigation measures to address those risks
- Annual public reporting on due diligence outcomes
Failure to comply may lead to serious consequences
- Bans on distribution
- Withdrawal or recall of products from the market
- Fines of up to 4% of annual turnover
Malaysia’s Initiatives on EUDR Compliance
As a major commodity producer, Malaysia is proactively addressing the impact of the EU Deforestation-free Regulation (EUDR) to ensure continued access to the EU market.
International Engagement
Malaysia, alongside Indonesia, is part of an Ad-Hoc Joint Task Force (JTF) with the European Commission to resolve EUDR compliance challenges. The JTF has met in Jakarta, Kuala Lumpur, and Brussels (2022–2024), focusing on five key workstreams:
National-Level Coordination
Malaysia formed a dedicated task force Jawatankuasa Kecil Mitigasi ke atas Pematuhan Perundangan Perdagangan Antarabangsa (JKM3PA) led by the Ministry of Plantation and Commodities, working with:
Wood has an excellent strength-to-weight ratio. For the same strength, w ood is much lighter than steel or concrete, making it easier to transport and work with. Engineered wood like Glulam and Cross Laminated Timber (CLT) is strong enough to be used in some of the world’s tallest timber buildings, making it a highly desirable choice for modern construction.
Different wood species offer a variety of natural durability. While some are long-lasting on their own, others can be treated to resist termites, moisture, and harsh weather. With proper treatment, wood can last even longer and perform better than untreated hardwoods.
Wood naturally insulates, keeping buildings cooler in hot weather and warmer when it’s cold. It performs far better than other building materials like brick, concrete, or steel, helping reduce energy use and improving indoor comfort.
National-Level Coordination
Malaysia formed a dedicated task force Jawatankuasa Kecil Mitigasi ke atas Pematuhan Perundangan Perdagangan Antarabangsa (JKM3PA) led by the Ministry of Plantation and Commodities, working with:
Upgrades in Traceability Systems
Each region in Malaysia is moving forward at its own pace to upgrade timber traceability systems — paving the way for full EUDR readiness.
Industry Initiatives
The timber industry is actively tackling EUDR challenges through strategic global engagement, knowledge sharing, and advocacy. Major initiatives include:
Industry Initiatives
The timber industry is actively tackling EUDR challenges through strategic global engagement, knowledge sharing, and advocacy. Major initiatives include:
Position Paper by the Malaysian Timber Industry on EUDR – May 2022
Coalition on Sustainable Timber Position Paper – February 2024
Joint Global Letter – Calling for legal clarity and fair transition under EUDR – April 2024
Stakeholder Engagements in Brussels – Dialogue visits in Sept 2022, May 2023, and May 2024
