Page 31 - FDMAsia MayJun2024
P. 31

FOCUS       29
         www.fdmasia.com | FDM ASIA MAY/JUN 2024




          which increased by 13 percent and clothing, which increased   EUROPE
          by 139 percent.                                    Certification schemes lay out EUDR compliance
            However, furniture consumption only increased by three   support
          percent and the consumption of construction and decoration   Given the huge dependence on FSC and PEFC by suppliers

          materials recorded a decline of eight percent.     into and out of the EU and for internal EU trade for provision
            Many  institutions predict that  the  annual transaction   of data on provenance and forestry practices, the extent
          volume for new homes  will only be maintained  at about   to  which these  systems  can adapt, or  not, to  the new
          one billion  sqm, down by about 40 percent compared to   requirements of the EU Deforestation Regulation (EUDR) will
          the high point in 2018.                            have a strong bearing on access to the EU market and on
            This will affect the manufacturing sector such as home   the continuing global competitiveness of European wood
          furnishing. Businesses have assessed there is no chance of   product manufacturers and traders in the future.
          expansion in the domestic market.                     FSC webinars in recent weeks have detailed its guidance
            National policies have promoted the pace of home   and support to help certified companies meet EUDR obligations.

          furnishing enterprises relocation overseas. The government   PEFC is also progressing alignment of its system and standards
          encourages enterprises to "go global" and provides a series   with the EUDR to aid PEFC-certified businesses’ compliance.
          of supportive policies and measures such as tax incentives   The FSC webinars, recordings or which are available on
          and  financial  support  creating  favourable  conditions  for   its website, covered its FSC EUDR Aligned Standard which
          enterprises to expand overseas.                    will be launched in June this year as an added option for
            In late 2000, many Chinese home furnishing enterprises   all FSC certified companies.
          chose to set up businesses in Europe and America, but more   Within  this,  its  EUDR  Regulatory  Module  will  provide

          recently, companies have vigorously targeted the Indian and   added components on avoiding implication in deforestation
          Southeast Asian markets.                           and forest degradation and take companies through EUDR
            This is because these countries have a large population   alignment of due diligence processes and reports.
          and growing consumer demand. As these economies expand   FSC has also been explaining how its new ‘FSC Blockchain’
          and people's living standards rise the demand for household   platform will work. This is designed to enable certified
          products increases.                                companies to meet the EUDR obligation for geolocation
            These new target markets have cultures and consumption   coordinates identifying the origin of timber and wood products.
          habits closer to those in China which is conducive to the
          rapid adaptation and integration of domestic household

          enterprises into the local market.                                                                  Ingeborg Korme
            In addition, the policy environment in India and Southeast
          Asian countries is also relatively open providing a good
          investment and development environment for domestic
          household enterprises.
            Some countries, in order to attract foreign investment
          and promote economic development, provide tax incentives,

          land leasing and other preferential policies reducing the
          establishment cost of incoming enterprises.
   26   27   28   29   30   31   32   33   34   35   36