Certification key to balancing sustainability and costs in global supply chains, says PEFC’s Thorsten Arndt

11 February 2025 News

At the recent United Nations Industrial Development Organization (UNIDO) event, “Who Pays? For the Implementation of Sustainability-Driven Regulations”, Thorsten Arndt, Head of Advocacy at PEFC International, took the stage to shed light on how smallholders - and the entire supply chain - can navigate the European Union’s new sustainability regulations, particularly the European Union Deforestation Regulation (EUDR) and how they can benefit from PEFC certification.

Three key challenges for smallholders

Thorsten identified three primary challenges that smallholders face under new regulatory frameworks such as the EUDR:

Compliance
Smallholders often struggle to understand exactly what they must do to comply.

Thorsten emphasized how PEFC’s EUDR DDS module uses familiar language and processes so that already-certified entities can seamlessly update their practices.

Those not yet certified can also benefit as the PEFC EUDR DDS simplifies complex EUDR requirements by translating them into clear, understandable steps.

Cost
Meeting new regulatory requirements can be prohibitively expensive for small producers. PEFC addresses this through group certification—a cooperative model in which auditing and implementation costs are shared among multiple smallholders.

Support
Capacity-building is essential, yet fragmented guidance and resources leave many smallholders unsure of how to implement necessary changes. Within PEFC group certification, a smallholders benefit from a collaborative approach that helps ensure every member to meet the requirements.

Why should we pay?

Beyond the mechanics of compliance, Thorsten posed a more fundamental question: “Perhaps we shouldn’t ask ‘Who pays?’, but ‘Why do we pay’”?

While EUDR seeks to curb deforestation and ensure legally sourced timber, Thorsten pointed out that the regulation focuses on avoiding harm rather than fostering a comprehensive model of sustainability.

He stressed the need for decision-makers to harness existing, proven systems such as PEFC that promote a holistic vision of sustainable forest management. 

Tapping into existing strengths

Thorsten highlighted that part of the answer lies in leveraging established certification programs - like PEFC - that already cover a significant share of the world’s production forests:

• 25% of global production forests: PEFC certifies one-quarter of these areas, all of which already meet strict sustainability criteria.
• A practical framework: Local contexts matter, as sustainability is inherently local in nature. Thorsten explained that PEFC’s national standards respect unique environmental, economic, and cultural conditions rather than imposing one-size-fits-all solutions.

Far from opposing new regulations, he emphasized that collaboration is key. He urged policymakers and other stakeholders to build on the groundwork laid by established certification systems such as PEFC.

“The intention behind EUDR is good and necessary,” he stated.

“With certification, we already have workable solutions. The challenge now is to ensure that regulations pick up on the ground work already done so that the environment, smallholders, and society at large all benefit.”