European Forestry Pulse #45 🎄

Hello and Merry Christmas,

The EUDR saga reached its conclusion on December 17. Parliament's final vote confirms what we've been tracking for months: large operators face December 30, 2026. Small enterprises get until June 30, 2027. And printed products? Completely removed from scope.

German furniture makers welcomed the news. The simplified downstream rules matter more than the timeline shift. Annual Due Diligence Statements replace per-shipment requirements. First placers bear the compliance burden. Downstream operators breathe easier.

Meanwhile, CLT growth hit zero for the first time ever. French cooperage faces crisis as oak prices crash. Verra launched a new durability pilot for carbon reversals.

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

The European Parliament adopted the final revision of the EU Deforestation Regulation on December 17, 2025. This ends months of institutional deadlock. The regulatory uncertainty is over. Now implementation begins.

The confirmed deadlines: Large and medium operators face December 30, 2026. Micro and small enterprises get until June 30, 2027. These dates are now legally binding. No more speculation about delays.

The printed products exemption: Books, newspapers, and magazines are removed from EUDR scope entirely. The paper and publishing industry lobbied hard for this change. Their argument: recycled paper content makes traceability practically impossible. Brussels agreed.

The simplified compliance rules: This matters more than the timeline. Three key changes reduce burden:

First, "first placers" now bear primary due diligence responsibility. Companies that first place products on the EU market handle verification. Downstream operators reference upstream Due Diligence Statements rather than creating their own.

Second, annual DDS replaces per-shipment requirements for regular importers. One submission covers repeated product entries. This dramatically cuts administrative load for established supply chains.

Third, re-imported products face simplified treatment. Goods leaving and re-entering the EU don't need full new verification if documentation exists.

The German furniture reaction: The German furniture industry called the decision "an important step towards greater practicality and planning certainty." They welcomed both the delay and the simplifications. For furniture manufacturers, the annual DDS option particularly matters. They import components continuously throughout the year.

The stakeholder consultation: Parliament simultaneously launched a stakeholder consultation on implementation details. This shapes how the rules actually work. Forest professionals should participate.

What didn't change: The core requirements remain. Deforestation-free products only. Geolocation data required. Due diligence obligations exist. Risk assessment mandatory. The regulation still targets illegal and legal deforestation. It just works more practically now.

What this means for you: If you prepared for December 2025, you're ahead. Use 2026 to refine systems rather than scramble. The extra year helps. But don't delay further. December 30, 2026 arrives fast.

For small operators, June 30, 2027 provides more runway. But start now. Simplified doesn't mean simple. Due diligence systems take time to build. Supplier data takes time to gather.

For companies placing products on the EU market first, you bear the compliance burden. Downstream buyers depend on your DDS quality. Get it right. Your customers inherit your verification.

The bigger picture: EUDR implementation now proceeds. The regulation survived political challenges. It survived industry opposition. It survived implementation concerns. Brussels committed to deforestation-free supply chains. That commitment stands. Source: European Parliament Press Release

Cross-laminated timber production growth stalled completely in 2024. For the first time since CLT emerged as a commercial product, European production showed no increase year-over-year. The engineered wood construction boom paused.

High interest rates crushed construction demand across Europe. Timber construction projects delayed or cancelled. Architects specify CLT but developers don't build. The production capacity exists. Orders don't.

This matters for European forestry beyond CLT itself. Engineered wood products drove demand for certified sustainable timber. Stalled CLT demand ripples through the softwood supply chain.

The takeaway: European wood construction's flagship product hit a wall. Recovery depends on interest rates and construction demand returning in 2026. Source: Timber-Online

France's cooperage sector faces a price bubble collapse. Oak barrel prices crashed as wine and spirits demand weakened. The industry appears oversupplied. Market behavior defied economic logic.

For years, premium wine production drove high-grade French oak demand. Barrel makers paid premium prices. Forest owners benefited. That cycle reversed. Wine consumption trends shifted. Spirits demand softened. Barrel orders declined.

The cooperage sector connects to broader hardwood markets. French oak is among Europe's most valuable timber. Price weakness signals demand shifts affecting forest owner revenues across the oak-growing regions.

The takeaway: French oak barrel market collapse affects hardwood prices beyond cooperage. Wine industry weakness reaches European forests. Source: Fordaq

Verra announced December 15 a new durability pilot program. The three-year pilot tests insurance and fund-based approaches to managing carbon reversal risk. This represents a shift from buffer pool models.

Traditional forest carbon projects hold back credits in buffer pools to cover potential losses from fire, disease, or management failures. The pilot explores whether commercial insurance or dedicated reversal funds work better.

For European forest carbon projects, this opens new options. Insurance-backed credits might trade at higher prices than buffer-pool credits. Lower overhead could improve project economics. Faster verification might accelerate market entry.

The takeaway: Carbon market infrastructure evolving. Verra tests alternatives to buffer pools that could benefit European forest carbon projects. Source: Verra

Stora Enso announced December 18 the completion of its €30 million fluting mill upgrade in Heinola, Finland. The investment cuts greenhouse gas emissions by over 90%. Annual CO₂ reduction exceeds 113,000 tonnes.

The upgrade replaces fossil fuels with renewable energy sources. This aligns with Stora Enso's science-based emission targets. Heinola mill now operates as one of the lowest-emission fluting production facilities in Europe.

Major packaging producers continue investing despite market weakness. Stora Enso's commitment signals long-term confidence in renewable packaging demand. Sustainability investments proceed even when markets struggle.

The takeaway: Major producer completes significant decarbonization investment. Packaging sector sustainability transition continues despite near-term market challenges. Source: Stora Enso

UPM signed a new €1.25 billion revolving credit facility on December 17. Fifteen banks participated in the syndicate. The five-year facility includes two optional one-year extensions.

The new facility refinances two previous agreements totaling €1.75 billion. UPM consolidates its credit arrangements while maintaining substantial liquidity. The terms reflect bank confidence in UPM's financial position.

Large forest industry players maintain strong banking relationships despite sector challenges. UPM's successful refinancing demonstrates continued access to capital markets. Financial flexibility supports ongoing operations and strategic investments.

The takeaway: Major Finnish forest company maintains strong bank support. Credit market access confirms financial stability amid sector-wide challenges. Source: UPM

My second article just published on Fordaq: "The Story We Forgot to Tell: Forestry's Achievements."

Last month I wrote about forestry's PR failures. How we lost public opinion to industries burning fossil fuels. This piece flips the script. It covers what we should have been saying all along.

European forests grew by 9% since 1990. We sequester 10% of EU emissions annually. Sustainable harvest rates stayed below growth for decades. Wood construction stores carbon for generations. These are facts. We just never promoted them.

The industry perfected sustainability. Then forgot to tell anyone. While NGOs built narratives, we built forests. Now we need to build communications too.

Read it here: The Story We Forgot to Tell

The takeaway: Forestry has achievements worth promoting. Start telling the story. Source: Fordaq

December 27, 2025: Markets reopen after Christmas holidays

December 30, 2026: EUDR deadline for large/medium operators (confirmed Dec 17)

June 30, 2027: EUDR deadline for micro/small enterprises (confirmed Dec 17)

Q1 2026: EU Carbon Removals Certification Framework applications open

Review your EUDR compliance roadmap with the confirmed deadlines. December 17 ended the uncertainty. Now plan with real dates.

Twenty minutes, critical clarity:

The Parliament vote removed excuses. Large operators have 12 months. Small operators have 18 months. That's real time to build real systems.

Don't waste the extension waiting. The companies that succeed used 2025's uncertainty to prepare. They'll use 2026 to refine. Those who waited have harder work ahead.

Start Monday. Even if it's just 20 minutes.

Until Thursday!

Wish you a merry Christmas: 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 email to them!

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