European Forestry Pulse #1 🌲

Hello,

Here's what's moving European forestry this week:

The European Parliament just leveled the EUDR playing field in the most challenging way possible. Despite the welcome one-year delay, the rejection of risk-based country classifications means all timber—from Swedish forests to tropical imports—faces identical compliance requirements.

The European Parliament just threw a wrench into EUDR implementation plans. On July 9th, MEPs voted to reject the Commission's country risk classification system that would have allowed lighter checks (1%) for "low-risk" countries and heavier scrutiny (9%) for "high-risk" ones.

Why? Parliament says the data is outdated and the process lacked transparency. While the vote is non-binding, it puts massive political pressure on the Commission to completely revise the system before the deadline for publishing the final benchmarks.

What this means for you: Forget about easier compliance for Nordic timber versus tropical imports. Without risk categories, every operator must prepare for the same stringent due diligence requirements regardless of origin. Start building robust traceability systems now—there's no "easy mode" coming. Consider this an opportunity to standardize your processes across all supply chains rather than maintaining multiple compliance tiers. Source: ATIBT - EUDR tensions over country rankings

Only 65,000 of 13.4 million Verra forest credits came from Europe in 2024—that's just 0.5% of global production. Meanwhile, European buyers account for over half of worldwide demand, creating an unprecedented supply-demand imbalance. Current prices range from €20-70 per tonne, but analysts predict they'll reach €80-150 by 2035. Major investment firms are now scrambling to acquire European forests specifically for carbon project development.
The takeaway: If you're sitting on forest land, the carbon opportunity window is wide open—but early movers will capture the premium prices. Source: AgFunder News - Competition, price jumps expected

Finnish log prices hit exceptional levels this quarter, with some regions reporting 15-20% increases year-over-year. In stark contrast, Swedish giant Södra posted negative Q2 results, citing currency turmoil and persistently high operational costs. The German HPE index showed a 7.1% rise in Q1, but summer demand has disappointed across Central Europe, with order books 30% below seasonal averages. This regional divergence reflects varying construction activity, export dynamics, and local supply constraints.
The takeaway: Regional variations are extreme—know your specific market dynamics before locking in Q4 contracts. Source: Global Wood Markets Info - European market updates

The EU just launched its most ambitious forest health monitoring system, with 17 partners across 10 countries deploying AI-powered early warning technology. The FORSAID project combines satellite surveillance, smart traps with image recognition, DNA barcoding for species identification, and machine learning models that predict outbreak patterns. Initial field tests show the system can detect bark beetle infestations 3-4 weeks before visible damage occurs. The project received €12 million in Horizon Europe funding and will roll out to 500 test sites by year-end.
The takeaway: Early adopters of this tech will slash pest losses and gain a compliance edge for EUDR's forest health requirements. Source: Pensoft - FORSAID project launch

Test your EUDR readiness: Pick one random shipment from last month and try to trace it back to the exact forest plot with GPS coordinates. Time how long it takes and document every gap you find. This simple exercise will reveal exactly where your compliance system needs work before December 2025.

Until Thursday!

Wish you all the best: Peter

P.S. What’s the biggest challenge you’re facing in forestry right now?
Hit reply and let me know — I read every message personally.

P. P. S. Know a forest professional who’s drowning in EUDR complexity or missing out on timber market shifts? Forward this issue or invite them to join!

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