The importance of spatial information for EUDR due diligence 

The importance of spatial information in facilitating due diligence under the European Union Deforestation Free Regulation (EUDR) cannot be overstated. This Insight highlights several key messages regarding the role of Earth observation technologies and geographical databases in complying with the EUDR.

Key Messages:
  • Critical Role of Spatial Information: Spatial data, sourced from Earth observation technologies and GIS, is essential for the due diligence processes of operators and the regulatory controls of EU Member States under the EUDR. 
  • Importance of Forest Cover Data: Data on forest cover that aligns with the Food and Agriculture Organization (FAO) forest definition and the 2020 cut-off date is a crucial element in assessing risks of non-compliance with the EUDR. 
  • Significance of Protected Areas Data: Data on the boundaries of protected areas is vital for evaluating compliance with national legal requirements pertaining to land use and environmental conservation.  
  • Easiest Way to Ensure EUDR Compliance: Leveraging Peterson Technologies expertise. 
Introduction

The European Union Deforestation Regulation (EUDR) has been established to mitigate the risk associated with the production and supply chains of various commodities linked to deforestation and forest degradation. These commodities include cattle, cocoa, coffee, oil palm, rubber, soya, and wood. The regulation stipulates that products from these commodities must not contribute to deforestation when placed on the EU market or exported from it. 

Under this regulation, operators engaging in trade of these commodities must undertake due diligence procedures before introducing their products into the EU market. This due diligence process involves three key steps: 

  • Data Collection: This step requires the gathering of detailed data (such as product description, supplier information, etc.), including the geolocation of the production site, evidence demonstrating that the product was not produced on land deforested after December 31, 2020, and evidence verifying compliance with the production laws of the originating country. 
  • Risk Assessment: Operators must evaluate the risk of the product not complying with the EUDR requirements. This involves considering factors such as the presence of forests, the extent of deforestation and forest degradation in the source area, the risk of mixing compliant and non-compliant products, and addressing any third-party concerns. 
  • Risk Mitigation: If risks are identified, operators must take steps to reduce these risks to a negligible level and document their mitigation strategies. 

Spatial information, is crucial in the due diligence process for both operators and the controlling authorities of EU Member States. For example, the geolocation of farms can be ascertained using GPS devices, mobile phones, and digital GIS applications, especially for larger plots (over 4 hectares as per EUDR requirements). 

The compliance of these commodities with the EUDR is determined using various data, including: 

  • Farm geolocation data. 
  • Forest cover data as of the cut-off date. 
  • Protected area boundaries. 

By overlaying farm geolocation data with forest cover information and protected area boundaries, a preliminary validation can be made regarding the deforestation-free status of the product. This process also includes assessing whether the product was produced in line with the land-use and protected area laws of the producing country. 

To further manage and assess deforestation risks, additional tools and data types are necessary. These may include land-use or cover change maps, deforestation risk maps, forest disturbance detections, and remediation systems to address non-compliance. 

Comprehending and implementing the EUDR zero-deforestation requirement 

The European Union Deforestation Regulation (EUDR) mandates operators to furnish “adequately conclusive and verifiable” evidence that commodities have not been produced in forest areas converted to agricultural use post-December 31, 2020.  

The EUDR adheres to the Food and Agriculture Organization of the United Nations (FAO) definition of a forest. This definition characterizes forests as land areas exceeding 0.5 hectares, with trees taller than 5 meters and a canopy cover of more than 10%, or trees capable of achieving these thresholds in situ. This excludes land primarily used for agriculture or urban purposes and agricultural plantations. The term “agricultural use” encompasses land utilized for agricultural activities, including plantations, and designated agricultural areas. 

For EUDR compliance, forest cover data that aligns with the FAO’s forest definition and considers the 2020 cut-off date is crucial. Remote sensing technologies offer transparent, accessible, and often near real-time information, aiding operators in meeting due diligence requirements. Various datasets and platforms provide information on forest and tree canopy cover, including global and regional dataset. 

What’s the EUDR legality criteria related to land use? 

Additionally, it is imperative that commodities are produced in compliance with the legal frameworks of their country of origin. This includes respecting land-use laws, particularly regarding the prohibition of agricultural production in protected areas. 

While many countries have created national geospatial data outlining protected areas, access to this information can vary. In cases where national data isn’t publicly available, operators can turn to global datasets. 

The World Database on Protected Areas (WDPA), managed by the UNEP World Conservation Monitoring Centre in collaboration with IUCN, offers a comprehensive global dataset of protected areas.  

What’s the easiest way to ensure my production is EUDR compliant? 

At Peterson Technologies, we specialize in offering a detailed EUDR Compliance Spatial Analysis service, meticulously tailored to meet the stringent standards set by the European Union. Our service includes the precise generation of plots of land for all your fields, followed by an exhaustive risk analysis. This thorough process ensures complete compliance with EU regulations regarding deforestation and land use.  

Furthermore, our global network of colleagues in over 80 offices worldwide provides unparalleled on-the-ground insights, and comprehensive guidance throughout the entire process, ensuring that your production operations align seamlessly with EUDR mandates.

Our commitment is to facilitate your adherence to these critical environmental standards, thereby fostering sustainable and responsible business practices. Don’t hesitate to contact us at tech.commercial@nepeterson.com for more information.