Up to 40% of all softwood entering the EU comes from Ukraine, according to new data published by Eurostat—the European Union’s statistics bureau—which reports that Ukraine, Norway (32%, or 409,000 cubic metres), and Bosnia and Herzegovina (10.5%, or 133,000 cubic metres) are Europe’s new big three in the wake sanctions imposed on Russia, which together with Switzerland and Canada make up the vast majority of the 1.262 million cubic metres trade into the block.
The Zelenskyy administration new policies will ramp up timber processing in the controlled (west). WWF-Ukraine Director warns that the new policy risks making Ukraine a “high-risk” country as defined under the EUDR’s terms and definitions.
The Council on Ethics to the Norwegian sovereign wealth fund has told Rio Tinto in recent months that it is assessing the mining company for environmental damage from its operations in the Brazilian Amazon. In the January letter, the council asked Rio Tinto for comment on its draft recommendation to exclude the company from Norway’s $1.6 trillion fund.
New research using Trase data shows that supply chain divergence to meet different consumer requirements already is a reality. Brazil’s exporters, for example, sell soy to Denmark and Norway that is four-times less exposed to deforestation than soy sent to China or used domestically.
The researchers interviewed companies from the Brazilian soy sector and confirmed such segmentation is both predictable and standard practice. While physical segregation of soy grains can be challenging, it has not been difficult for certain traders and regions exposed to very different levels of deforestation to specialise in markets that demand higher or lower levels of sustainability.
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