MojGozdar portal, an innovative tool to implement a Due Diligence and Traceability System for Trade of forest wood assortments in Slovenia

MojGozdar portal, an innovative tool to implement a Due Diligence and Traceability System for Trade of forest wood assortments in Slovenia In Slovenia, overcoming administrative hurdles to meet the standards of current agricultural policy represents additional work and obligations for farmers that weigh on the implementation of their primary activity. Farms and forest owners are not well connected in terms of marketing forest wood assortments or having a joint presence on the market. There is a need to improve the efficiency of the connections and to optimise their operations. The eGozd operational group (2020-2023) was coordinated by the Slovenian forestry Institute, with the help of seven forest owners, the Forest Owners Association of Slovenia, the agrarian community of Čezsoča and the companies RACE-KOGO d. o. o and IT development partner Arctur d. o. o.. It aims to increase digitalization and reduce administrative burdens on farms by optimizing forest-wood value chains and intensifying private forest management. Its purpose is to increase the level of digitalization in forest management and thus directly influence the increase in productivity and added value throughout the forestry production chain. Since 2017, the online system MojGozdar (https://www.mojgozdar.si/) has been an important link between Slovenian forest owners and other forest service applicants on the one hand and forest service providers on the other. It offers users a wide range of options, from searching and contacting contractors to digitally managing key documents related to the implementation of forestry works (Triplat et al., 2018). Thanks to this functional online forestry information system, it is possible to increase the transparency of the forestry services market. The aim is to provide, through an online system, the basis for ensuring due diligence and traceability of forest wood assortments. The international community has developed policy measures to promote sustainable forest management and to combat illegal logging and associated trade in order to protect the world's forest resources. In 2003, the EU adopted the « Forest Law Enforcement Governance and Trade (FLEGT) » (Council of the European Union, 2005; European Commission (DG ENV), 2024) Action Plan, which is considered to be the central document and provides for various measures to prevent the import of illegal timber. These measures include the implementation of the « EU Timber Regulation (EUTR) » in 2010) (Council of the European Union, 2010) and the implementation of « Voluntary Partnership Agreements (VPAs) » (European Commission (DG ENV), 2022). VPAs are bilateral trade agreements negotiated by the European Commission with the governments of voluntary timber exporting countries. In 29th June 2023 entered into force new European regulation (EU) 2023/1115 (Council of the European Union, 2023): the Regulation on the making available on the Union market as well as export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 called « Regulation on Deforestationfree products (EUDR) » which goal is to limit deforestation and forest degradation caused by consumption and manufacturing in the EU, thus reducing the contribution of the EU to greenhouse gas emissions and to the global decrease of biodiversity. EUDR replaces the currently applicable EUTR and encompasses an expanded range of products: wood, oil palm, cocoa, coffee, soya, rubber, and cattle, as well as products manufactured using these primary products, such as chocolate, furniture, printed paper, and some palm oil derivatives. Benjamin Chapelet, Bilal Snoussi (CNPF); Matevž Triplat, Špela Ščap (GOZDIS) Presentation of the eGozd operational group Presentation of the European standards framework and the due diligence system The European Union Timber Regulation (EUTR) is the EU's key tool in the fight against illegal timber. It was adopted on 20 October 2010 by the European Parliament and the Council and has applied in full since 3 March 2013. This regulation requires legal entities and private persons to act with due diligence and ensure the traceability of timber and timber products when placing them on the European market for the first time. The essence of a due diligence system is that economic operators implement risk management measures through traceability to minimize the risk of placing illegally harvested timber or products containing illegally harvested timber on the market. Due diligence obligations are set out in Articles 4 to 7 of the EUTR (Council of the European Union, 2010), laying down the obligations of operators who place timber and timber products on the market). The companies required to apply this regulation are those placing timber or timber products on the EU market for the first time. Owners selling standing timber are not affected. However, owners who sell timber at the roadside or companies who buy timber and then resell the timber after harvesting are companies placing timber on the market for the first time. Operators must be able to demonstrate a system of due diligence, which includes a document describing the procedure in place (such as a decision tree) and a register listing the mandatory information on supplies. As one of the most important innovations in environmental policy, the EUDR will bring farreaching changes to the management of global supply chains. However, shortly before the planned implementation of the EUDR, there was a significant turn of events. On October 2, 2024, the European Commission published the third version of responses to Frequently Asked Questions, general guidelines for the uniform implementation of the regulation at EU level and a strengthened strategic framework for international cooperation. The Commission also announced a proposal for a one-year postponement of the implementation of the EUDR. The new start date, which was confirmed by the European Council on October 16, 2024 and by the European Parliament on November 14, 2024, is now set for December 30, 2025 for large and medium-sized enterprises and June 30, 2026 for micro and small enterprises. At the same time, the European Parliament is proposing further changes to the content of the regulation. Any due diligence system has three components: 1) Collecting information on the timber placed on the market Companies must know, for timber supplied or derived product placed on the market: the name of the forest species or the different species in the case of derived products, the place of harvest, the quantity, the name and address of the supplier, the name and address of the customer and, finally, the documents attesting to compliance with the applicable forestry legislation. The information to be collected, according to this regulation, must be able to be provided over the last five years. 2) Assessing the risk of illegality Based on the information collected, the company must be able to assess the risk of illegal timber being present. In the case of timber imported from outside the European Union, the analysis must be more detailed. For example, the company will have to prove that it knows and monitors the legislation of the importing country (such as the identification of regions particularly affected by illegal logging and corruption), that it is vigilant about the possibility of falsifying official documents and that it is able to establish the supply chain of the imported wood from its place of harvest. 3) Mitigation measures must be specified If the risk is not negligible, the company must implement mechanisms to reduce it (such as changing suppliers, obtaining additional information, third-party certification, etc.). Mitigation measures must be proportionate, except when there is a high risk; the EUTR does not require total and exhaustive traceability. FLEGT licences issued by the authorities of countries that have signed VPAs with the EU (see EC Regulation No 2173/2005) are recognised by the EUTR as guarantees of legality. Under the EUTR, procedures giving access to information on products placed on the market for each load are compulsory. However, for the same supplier, keeping the information up to date on an annual basis is sufficient, provided that the forest species and place of harvest remain unchanged. Control organizations are bodies approved by the European Commission. They offer companies the possibility of setting due diligence systems, followed by an annual check to ensure that the system is being properly applied by the company. The basis of a due diligence and traceability system for forest wood assortments is the possession of a felling permit and a contract with a forest service provider. At the same time, all other necessary documents can be obtained via the online system. The Slovenian forestry Institute has digitized the ‘Due Diligence and Traceability System for Trade of forest wood assortments’, which contains the ‘Record of Use of Trade in forest wood assortments’ and the ‘Accounting Document’. The system is recommended for use by everyone, especially forest owners, as a simple and transparent tool for managing the data required by EU regulations, or for providing the prescribed information in the event of an inspection. The system is free and accessible to all users who register on the MojGozdar portal. To manage digital documents, users must register and connect to the system. The system (Figure 1) then guides users through a series of questions that provide the necessary documents (such as a registration sheet, an accounting document or a transport declaration). Presentation of the Due Diligence system within the MojGozdar.si tool Figure 1. Module for preparing and managing digital records (due diligence management and traceability of timber assortments) in the MojGozdar.si online system. To make it easier to organize the digital documents, a video guide has also been produced and is available (SIG GTE, 2018). Ultimately, the tool offer new, simplified options for planning, monitoring and carrying out work, as well as more efficient forest management on farms. This will lead farms into a new era of digitalization, simplifying business and reducing the bureaucratic burden of keeping various registers. The farm or forest owner will have in-depth knowledge of the data relating to its forests and the possibilities for managing them in the future thanks to the management plan. In the future, the information system developed will also be used to improve forestry registers and establish a direct connection with the selected contractors. The project is currently undergoing an intensive upgrade of the online system, which, in addition to improvements to the module for editing digital archives, will also search for possibilities to adapt tools to support EUDR requirements. [Insert on the competent authorities and control organizations in France]: “The Ministry of Agriculture and Food Sovereignty is responsible for implementing the EUTR in France for forest operators and sawmills importing timber. Inspections are carried out by the regional directorate for food, agriculture and forestry (DRAAF) in the region where the head office of the inspected company is located. However, for other operators importing timber products placed on the European market for the first time, the Ministry for Ecological Transition and Territorial Cohesion is responsible. The inspection is then carried out by the DDTM (Direction Départementale des Territoires et de la Mer) of the département in which the head office of the company concerned is located. More informations can be found on the website of the Ministry of Agriculture and Food Sovereignty (Ministère de l’Agriculture, de la Souveraineté alimentaire et de la Forêt, 2016).” Council of the European Union, 2023. Regulation (EU) No 2023/1115 of the European Parliament and of the Council of 31 May 2023 on the making available on the Union market and the export from the Union of certain commodities and products associated with deforestation and forest degradation and repealing Regulation (EU) No 995/2010 (Text with EEA relevance)., OJ L. Council of the European Union, 2010. Regulation (EU) No 995/2010 of the European Parliament and of the Council of 20 October 2010 laying down the obligations of operators who place timber and timber products on the market (Text with EEA relevance)., OJ L. Council of the European Union, 2005. Council Regulation (EC) No 2173/2005 of 20 December 2005 on the establishment of a FLEGT licensing scheme for imports of timber into the European Community., OJ L. European Commission (DG ENV), 2024. EU rules against illegal logging. [WWW Document]. environment.ec.europa.eu. URL https://environment.ec.europa.eu/topics/forest s/deforestation/eu-rules-against-illegallogging_en (accessed 12.5.24). European Commission (DG ENV), 2022. Voluntary partnership agreements on forest law enforcement, governance and trade | EUR-Lex. [WWW Document]. environment.ec.europa.eu. URL https://eur-lex.europa.eu/FR/legalcontent/summary/voluntary-partnershipagreements-on-forest-law-enforcementgovernance-and-trade.html (accessed 12.5.24). Ministère de l’Agriculture, de la Souveraineté alimentaire et de la Forêt, 2016. Le règlement sur le Bois de l’Union Européenne. [WWW Document]. Ministère Agric. Souveraineté Aliment. For. URL https://agriculture.gouv.fr/lereglement-sur-le-bois-de-lunion-europeenne (accessed 12.5.24). Bibliography FOREST4EU Project FOREST4EU Project [email protected] Contacts Further information forest4eu.eu Funded by the European Union (Grant n. 101086216). Views and opinions expressed are however those of the authors only and do not necessarily reflect those of the European Union or REA. Neither the European Union nor the granting authority can be held responsible for them. partners: MojGozdar website. [email protected] [email protected]; [email protected] SIG GTE, 2018. Wood assortment due diligence and traceability system for private forest owners. URL https://www.youtube.com/watch? v=lNbgJ2kjr7I (accessed 12.5.24). Triplat, M., Piškur, M., Krajnc, N., 2018. Spletni informacijski sistem MojGozdar.si.