{"id":88822,"date":"2025-05-08T08:19:55","date_gmt":"2025-05-08T08:19:55","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/eudr-could-cost-finnish-wood-companies-hundreds-of-millions\/"},"modified":"2025-09-19T09:04:12","modified_gmt":"2025-09-19T09:04:12","slug":"eudr-could-cost-finnish-wood-companies-hundreds-of-millions","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/eudr-could-cost-finnish-wood-companies-hundreds-of-millions\/","title":{"rendered":"EUDR could cost Finnish wood companies hundreds of millions"},"content":{"rendered":"

<\/span>The EU Deforestation Regulation could cost Finnish companies up to hundreds of millions of euros, estimates a study by Pellervo Economic Research PTT. The greatest costs would fall on companies that use wood and large trading companies. Companies need practical training and advisory services to implement the regulation, as well as effective coordination of responsibility obligations.<\/p>\n

\"Overall, the deforestation decree is estimated to cause Finnish companies approximately 207 million euros in start-up costs and approximately 65 million euros in annual maintenance costs. This is an estimate based on average costs, and there are many uncertainties involved,\" summarizes senior forest economist Jani Laturi.<\/p>\n

The aim of the study was to estimate the direct costs of the EU Deforestation Regulation for Finnish companies. The cost estimates are based on company interviews and cover both the start-up phase and annual maintenance costs by commodity and company size. The costs consist of, among other things, working time, technical investments and training.<\/p>\n

The study does not include indirect costs, such as potential increases in raw material prices. According to companies, the supply of imported goods such as rubber, coffee, cocoa, soy and oil palm to the EU could decrease, which would increase raw material prices and consumer prices.<\/p>\n

For the study, approximately 100 companies were contacted that, based on the industry classification, have operations subject to the Deforestation Decree in the areas of cocoa, coffee, rubber, cattle, wood, soy and\/or oil palm. 25 of the companies participated in the research interviews.<\/p>\n

The biggest costs for wood-using and large trading companies<\/strong><\/p>\n

The average one-off costs caused by the regulation ranged from EUR 8,000 to EUR 3.2 million across sectors. This is significantly higher than the Commission's previous estimate (EUR 5,000\u201390,000), which was based on the previous regulatory framework and is not directly comparable.<\/p>\n

The results show that the size of the company is the most significant factor affecting costs, while the differences per product were smaller. The average costs increase approximately tenfold when moving from small to medium-sized companies and further from medium-sized to large. On the other hand, the costs of the regulation are relatively highest in small companies, where the average start-up costs can correspond to up to a third of the average net profit and the annual maintenance costs to almost a fifth.<\/p>\n

The largest total costs are for the wood-based industry. The start-up costs of wood-based companies total 140 million euros and the annual maintenance costs are 49 million euros.<\/p>\n

The second highest costs are incurred by large trading companies, with start-up costs of EUR 54 million and annual maintenance costs of EUR 12 million. The cattle industry had the third highest costs, but clearly lower than the other two.<\/p>\n

Losses caused by the penalty payment would be a very high risk for companies<\/strong><\/p>\n

The maximum amount of the fine imposed for a serious infringement of the Regulation must be set at a national level at least four percent of the undertaking's Union-wide turnover. For small enterprises, the maximum amount is on average EUR 33,000\u201369,000, for medium-sized enterprises EUR 3.5\u20134.6 million and for large enterprises EUR 17.1\u201322.7 million. For large enterprises in the trade sector, the amount is on average EUR 42.8 million.<\/p>\n

Based on interviews with industry associations, the maximum level of penalty payment is so high that the resulting losses would pose a very high risk to companies.<\/p>\n

Companies need training and advisory services to implement the regulation<\/strong><\/p>\n

The report found that companies need clear communication, practical training and advisory services to implement the regulation. This information need applies to both companies and service providers, such as auditors and IT system vendors. It also called for effective coordination of EU liability obligations to avoid increasing bureaucracy.<\/p>\n

The study is subject to several uncertainties, including the small sample size, the varying capabilities of companies and the incomplete interpretation of the regulation. The assessment of the number of companies was based on industry classifications, which can lead to both over- and under-estimations. Companies are also preparing for other EU sustainability obligations at the same time, which made it difficult to identify cost impacts.<\/p>","protected":false},"excerpt":{"rendered":"

The EU Deforestation Regulation could cost Finnish companies up to hundreds of millions of euros, estimates a study by Pellervo Economic Research PTT. The greatest costs would fall on companies that use wood and large trading companies. Companies need practical … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88822","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nEUDR could cost Finnish wood companies hundreds of millions - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/eudr-could-cost-finnish-wood-companies-hundreds-of-millions\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EUDR could cost Finnish wood companies hundreds of millions - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The EU Deforestation Regulation could cost Finnish companies up to hundreds of millions of euros, estimates a study by Pellervo Economic Research PTT. 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