A new research report, "Insights on the EU Deforestation Regulation (EUDR): Requirements for Trade Flows Linked to China," was recently released with support from Fern and authored by BellaTerra Consulting. This comprehensive study—incorporating insights from Chinese industry associations, research institutions, and regulatory bodies—uses trade data and case studies to clarify the EUDR's impact on China-EU trade. Its central conclusion is clear: EUDR compliance is not merely about administrative filing; it is fundamentally about an enterprise's ability to control and trace its entire supply chain.

The report categorizes industries based on trade structures, helping businesses identify their specific compliance priorities:
 ● Non-Core Industries (Domestic Consumption-Focused): Sectors like soybeans, beef, palm oil, coffee, and cocoa face limited systemic pressure because most products are consumed domestically. The report highlights that EUDR impact is determined by whether environmental risks "flow into the EU through trade," rather than the mere existence of the risk itself.
● Core Impact Industries (The Processing & Re-export Sector): Wood products, furniture, paper, natural rubber (tires/gloves), and certain leather goods are the primary targets. These industries often process raw materials from high-risk regions in China before exporting finished products to the EU. Key challenges here include fragmented smallholder production and complex, multi-tiered supplier systems that amplify traceability risks.

To successfully navigate the regulation, the report identifies three strategic focus areas:
1.The Essence of Compliance: Controllability, Explainability, and Verifiability The EUDR doesn't create new risks; it exposes long-overlooked gaps in supply chain management. True compliance requires "full-link" transparency—the ability to explain and prove every step of the product's journey.
2.The Geographical Data Dilemma EUDR requires plot-level coordinates, which are classified as sensitive data in China. Since no standardized national pathway for cross-border submission currently exists, businesses must navigate this institutional challenge with extreme caution.
3.Dynamic Enforcement: A Phased and Differentiated Approach Enforcement is not static; it varies by product type and EU member state. Plywood, rubber, and leather are already identified as high-priority inspection targets, meaning compliance is a long-term process of continuous adaptation.

Drawing on deep regulatory expertise and global compliance experience, SKYCO2 provides targeted solutions to help enterprises meet these rigorous standards:
● Compliance Diagnostic: We align your product types and trade flows to pinpoint core tasks and optimize investment.
● Enhanced Traceability: We help standardize multi-tiered supplier networks to resolve the challenges of fragmented upstream sourcing.
● Data Security Navigation: Within the framework of sensitive data regulations, we explore compliant ways to present and submit geographical information across borders.
● Adaptive Monitoring: We track evolving enforcement priorities across EU member states to ensure your strategy remains resilient.
In an era of tightening environmental scrutiny, supply chain traceability is no longer optional—it is a "must-have" license to operate in the EU market.
Connect with SKYCO2 today to transform your supply chain into a competitive advantage and secure your future in the green trade market.