akar.earthDeforestation Risk Assessment for Wood and Timber Supply Chains
Deforestation risk in wood and timber supply chains: assessing Indonesian concessions, pulpwood plantations and community forests for EUDR.
Deforestation risk assessment for a wood supply chain means checking each harvest area for both deforestation and forest degradation after 31 December 2020, confirming legal harvest, and evaluating how much mixing occurs between forest and mill, then acting before EU-bound products ship. For Indonesian wood, the distinctive risk is degradation: pulpwood or timber from plantations created by converting natural forest after the cut-off date.
Two tests for wood
Wood is the only commodity where forest degradation matters as well as deforestation.
- Deforestation: conversion of forest to agricultural use. Relevant for logs from land clearing for crops, mining or other uses.
- Forest degradation: conversion of primary or naturally regenerating forest into plantation forest or other wooded land, or of primary forest into planted forest. Relevant for plantation timber and pulpwood.
Risk by source
| Source | Key risk | Typical level |
|---|---|---|
| Natural forest concession, selective logging | Later conversion of harvested blocks; illegal logging outside blocks | Medium; depends on management |
| Plantation forest, compartments established before 2020 on non-forest or already-planted land | Low for degradation | Lower |
| Plantation forest, compartments established after 2020 on natural forest | Degradation | Non-compliant |
| Logs from land clearing permits | Deforestation if land was forest in 2020 | Higher |
| Perhutani compartments in Java | Long-established plantations | Lower |
| Community woodlots | Traceability, mixing with other logs | Lower deforestation, medium traceability |
| Imported timber and veneers | Origin country risk | Depends on origin |
The Commission’s country benchmarking category for Indonesia, and for any import origins, sets the baseline.
Risk factors to score
Establishment date of plantations. The most important data point for pulpwood and plantation timber. Compartment records combined with historical imagery confirm when natural forest, if any, was converted.
Peat. Many pulpwood plantations in Riau, Jambi, South Sumatra and Kalimantan are on peat. Peat rules affect legality, and conversion of peat swamp forest after 2020 fails the degradation test. See peat restoration rules.
Concession management. Natural forest concessions with poor management may see illegal logging or encroachment. SVLK audit findings and certification status help.
Land clearing logs. Timber from land clearing for plantations or mining enters the market in some regions. Its source land is, by definition, being converted.
Species and product mixing. Plywood and furniture mills mix inputs from many sources. The more sources, the higher the risk that unverified wood enters EU products.
Legal disputes. Overlap with customary land or community claims.
Satellite checks for wood
Satellite screening for wood looks at:
- Tree cover in 2020 and loss since, for land clearing sources.
- Natural forest versus plantation classification over time, for degradation.
- Rotation harvests in plantations, which are expected and not deforestation.
Distinguishing a plantation harvest from natural forest clearance needs time-series data and compartment records. See satellite verification.
A scoring workflow
- List sources by product line: concessions, compartments, woodlots, imports.
- Collect harvest area geolocation and establishment dates.
- Screen for deforestation and degradation since 2020.
- Check legality using SVLK documents, permits and community claims.
- Assess chain complexity, number of sources, mixing points and traders.
- Verify high-risk sources in the field or through audits.
- Decide and record: accept, exclude or mitigate.
Mitigation for wood
- Exclude timber from compartments established on natural forest after 2020.
- Exclude logs from land clearing unless the land was non-forest in 2020.
- Separate verified inputs in mills and record batch links.
- Audit high-risk concessions and traders.
- Use high conservation value assessments to guide set-asides and reduce conversion risk.
Carbon and conservation links
Concessions with natural forest that are well managed, or that set aside forest, may also qualify for improved forest management or conservation finance. The same forest cover and degradation data supports both EUDR risk assessment and carbon baselines. See improved forest management.
Imported timber in Indonesian products
Indonesian mills and furniture makers sometimes use imported timber, veneers or panels alongside local wood. For EU-bound products, each imported input must be traced to its own harvest areas in the country of production, with that country’s benchmark category and legal framework applied. Imported wood with only a supplier declaration and no harvest area data cannot support an EUDR-compliant product. Keep imported and local inputs in separate stock, and ask foreign suppliers early what EUDR data they can provide.
Repeat the assessment
Forest management changes between work plans. Repeat the assessment for each annual cutting block, each newly harvested compartment, and each new trader.
Next steps
Risk assessment feeds into wood due diligence. See the EUDR hub for the full topic map, or message us on WhatsApp about screening your timber sources through our EUDR compliance services.
Frequently asked questions
How is deforestation risk assessed for timber under the EUDR?
By checking each harvest area for deforestation and forest degradation after 31 December 2020, assessing legality, looking at supply chain complexity and mixing, then verifying and mitigating any risk before export.
What is the main EUDR risk for Indonesian pulpwood?
Forest degradation: wood from plantations established by converting natural forest after 2020 is non-compliant, even though the land remains forest.
Is natural forest timber high risk?
Legal selective logging that keeps natural forest is not degradation under the EUDR. Risk arises if harvest areas are later converted, or if logs come from land clearing.
Are community forest logs low risk?
Usually for deforestation, since woodlots are on farmland. The risk is in traceability through traders and in logs that may come from other sources.