Businesses highlight necessary steps to adapt EU Forestry Policy

18/ 11/ 2024

Listen to online Stop   On 12 November, Yurii Andriiv, Manager of the European Business Association’s Committees, joined Bohdan Tsupryk, Chair of the Woodworking and Furniture Industry Committee, and Maksym Polyakov, Deputy Chair of the Committee, in a meeting to discuss compliance with EU Regulation 2023/1115. During the meeting, business representatives outlined several critical issues requiring resolution: Inclusion of geographic coordinates in forest consignment notes and logging permits. EBA member companies note that for plots of less than 4 hectares, one point is sufficient, for plots of 4 hectares and more, a sufficient number of points is required to describe the contour of the plot. The coordinates consist of latitude and longitude values, which must be specified with at least six decimal places in the coordinate system. Electronic availability of forest consignment notes. Today, it is possible to receive logging tickets in electronic form with a QR code and partially monetary valuations of the areas for which logging tickets have been issued. On the website https://open.ukrforest.com/, it is possible to check the existence of forest consignment notes and basic data on the delivery (date, seller, buyer, vehicle and total volume of forest). However, there is no possibility to obtain the forest consignment notes in electronic form. The only way to receive forest consignment notes in electronic form for further transfer to buyers of wood products as proof that the wood was legally harvested and delivered for processing is to scan paper forest consignment notes received from forestry enterprises, which requires significant human resources. Thus, the introduction of an electronic forest consignment notes with the ability to scan the QR code on it and enter information using it will significantly facilitate the accounting, consolidation and provision of information to EU buyers. Include detailed information on timber species in logging tickets or attach material and monetary estimates. According to business representatives, logging tickets only indicate the type of timber growing in the area where the logging ticket allows logging (e.g. softwood, hardwood or coniferous). Therefore, providing only logging tickets as evidence of the legality of timber harvesting is not enough. The actual volume of timber by species is indicated in the Listing and Evaluation Statement (detailed material monetary value). Accordingly, in addition to logging tickets, it is necessary to additionally receive from the branches and combine with logging tickets the material monetary value. As noted earlier, for some branches it is already possible to download the material monetary value from the website of the SE ‘FIAC’, but not for all. Certification of all branches of the SE ‘Forests of Ukraine’ in accordance with the FSC national standard of the forest management system for Ukraine. According to business representatives, the number of buyers demanding products made from FSC certified wood is increasing every year. The volume of products that require additional volumes of such wood is also increasing. According to the EBA member companies, 93 branches of the State Enterprise ‘Forests of Ukraine’ out of 145 are certified under the FSC system. This is not enough to provide all FSC buyers with certified products. Even if the enforcement of Regulation 2023/1115 is postponed by one year, as currently proposed for EU parliamentary voting, EBA members believe these issues must be addressed promptly to avoid jeopardising Ukrainian wood product exports to the EU. The European Business Association expressed gratitude to the State Forest Resources Agency of Ukraine, the State Enterprise Forests of Ukraine, and the SFIC for organising the meeting and involving businesses in the discussion. The EBA looks forward to continued cooperation!

On 12 November, Yurii Andriiv, Manager of the European Business Association’s Committees, joined Bohdan Tsupryk, Chair of the Woodworking and Furniture Industry Committee, and Maksym Polyakov, Deputy Chair of the Committee, in a meeting to discuss compliance with EU Regulation 2023/1115.

During the meeting, business representatives outlined several critical issues requiring resolution:

Inclusion of geographic coordinates in forest consignment notes and logging permits. EBA member companies note that for plots of less than 4 hectares, one point is sufficient, for plots of 4 hectares and more, a sufficient number of points is required to describe the contour of the plot. The coordinates consist of latitude and longitude values, which must be specified with at least six decimal places in the coordinate system.

Electronic availability of forest consignment notes. Today, it is possible to receive logging tickets in electronic form with a QR code and partially monetary valuations of the areas for which logging tickets have been issued. On the website https://open.ukrforest.com/, it is possible to check the existence of forest consignment notes and basic data on the delivery (date, seller, buyer, vehicle and total volume of forest). However, there is no possibility to obtain the forest consignment notes in electronic form. The only way to receive forest consignment notes in electronic form for further transfer to buyers of wood products as proof that the wood was legally harvested and delivered for processing is to scan paper forest consignment notes received from forestry enterprises, which requires significant human resources. Thus, the introduction of an electronic forest consignment notes with the ability to scan the QR code on it and enter information using it will significantly facilitate the accounting, consolidation and provision of information to EU buyers.

Include detailed information on timber species in logging tickets or attach material and monetary estimates. According to business representatives, logging tickets only indicate the type of timber growing in the area where the logging ticket allows logging (e.g. softwood, hardwood or coniferous). Therefore, providing only logging tickets as evidence of the legality of timber harvesting is not enough. The actual volume of timber by species is indicated in the Listing and Evaluation Statement (detailed material monetary value). Accordingly, in addition to logging tickets, it is necessary to additionally receive from the branches and combine with logging tickets the material monetary value. As noted earlier, for some branches it is already possible to download the material monetary value from the website of the SE ‘FIAC’, but not for all.

Certification of all branches of the SE ‘Forests of Ukraine’ in accordance with the FSC national standard of the forest management system for Ukraine. According to business representatives, the number of buyers demanding products made from FSC certified wood is increasing every year. The volume of products that require additional volumes of such wood is also increasing. According to the EBA member companies, 93 branches of the State Enterprise ‘Forests of Ukraine’ out of 145 are certified under the FSC system. This is not enough to provide all FSC buyers with certified products.

Even if the enforcement of Regulation 2023/1115 is postponed by one year, as currently proposed for EU parliamentary voting, EBA members believe these issues must be addressed promptly to avoid jeopardising Ukrainian wood product exports to the EU.

The European Business Association expressed gratitude to the State Forest Resources Agency of Ukraine, the State Enterprise “Forests of Ukraine,” and the SFIC for organising the meeting and involving businesses in the discussion. The EBA looks forward to continued cooperation!