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In the recent partnership announcement, Finboot and OpenAtlas have introduced a comprehensive solution tailored to meet the European Union Deforestation Regulation (EUDR) requirements, aimed at addressing both compliance and sustainability challenges.
This partnership leverages Finboot’s blockchain-powered MARCO Track & Trace system and OpenAtlas’s VANTAGE-X remote sensing technology (geolocalization), providing a powerful tool for companies needing to comply with the regulation. To further explore the impact of this collaboration, we’ve invited Harry Marshall, OpenAtlas founder, to share his insights in this guest blog post.
The European Union Deforestation Regulation (EUDR) aims to prevent deforestation linked to the production of key commodities entering the EU market. While open data solutions like Global Forest Watch (GFW) and others are often seen as low-cost tools for deforestation monitoring, they present critical risks when it comes to ensuring compliance with the stringent requirements of the EUDR.
Here’s why open data is not a safe bet for EUDR compliance:
Open data solutions frequently fail to distinguish between actual forests and perennial crop plantations, such as palm oil, cocoa, and coffee. This poses a significant issue for EUDR compliance, which relies on precise forest cover data.
Under the EUDR, deforestation specifically refers to the conversion of forests into agricultural land, yet many open datasets mistakenly classify perennial crops (like oil palm) as forests. Such misclassification not only triggers false deforestation alerts but also exposes businesses to potential non-compliance penalties.
For example, as highlighted in OpenAtlas’ white paper, they may significantly overestimate forest cover in areas where crops are planted. Such overestimations can mistakenly flag plantation activities as deforestation, thus jeopardising compliance for smallholder farmers and leading to unwarranted exclusion from the EU market.
Open datasets are excellent for global stocktaking or raising awareness of deforestation trends. However, when it comes to due diligence at the plot level, these datasets often fall short. Many global data sources frequently fail to meet the strict forest definitions required by the EUDR.
For example, according to Satelligence, they may overreport forest cover by 40-95% in some countries, such as Côte d'Ivoire, the world's largest cocoa producer. This overestimation results in significant inaccuracies when conducting risk assessments for EUDR compliance due diligence statements.
Compliance with the EUDR requires plot-level precision that open data simply cannot deliver. Using open data alone risks false positives and negatives, which can lead to unnecessary fines or exclusion from the market altogether. OpenAtlas’ VANTAGE-X tool offers a specialised solution by layering real-time, high-resolution data from Sentinel-2 and other sources, alongside well-vetted systems like CCDC, to ensure precise plot-level monitoring that aligns with the EUDR’s stringent requirements.
A key challenge with using open data for EUDR compliance lies in the mismatch between global forest definitions and the specific legal definitions required by the EUDR.
Approximately 80% of producer countries have forest definitions that do not align with the EUDR. This inconsistency creates further complexity in ensuring accurate monitoring and compliance. Even the European Commission’s Forest Observatory Global 2020 map, a widely used open dataset, has been shown to overestimate forest cover by incorporating plantations under the category of forests.
The EUDR requires clear differentiation between forest degradation and deforestation. Global open data solutions often don’t make this distinction clear enough, leading to incorrect risk assessments.
For businesses that want to ensure EUDR compliance, relying solely on open data is risky. OpenAtlas’ VANTAGE-X tool is built specifically to mitigate these challenges by incorporating advanced AI-powered deforestation detection, using high-resolution satellite data, and layering multiple datasets to provide accurate, actionable insights at the plot level. OpenAtlas provides a compliance-driven alternative to open data systems
Partnerships between remote sensing companies like OpenAtlas and traceability service providers, such as Finboot, are essential for EUDR compliance.
Finboot enhances supply chain visibility through its blockchain-powered MARCO Track & Trace solution, ensuring accurate and verifiable geolocation data of source plots. This precise data is vital for remote sensing providers like OpenAtlas to perform effective deforestation monitoring on the correct plots, ensuring compliance with the EUDR’s stringent regulations.
By integrating Finboot’s traceability solutions with OpenAtlas’ advanced satellite-based monitoring tools, businesses can confidently track agricultural products back to their origins, verify compliance, and avoid the risk of hefty fines for non-compliance. Furthermore, Finboot’s technology allows for immutable record-keeping and facilitates the creation of digital product passports (DPPs), enhancing overall supply chain transparency. This partnership not only strengthens deforestation risk assessments but also ensures that businesses meet the high standards expected in the European market.
Open data sources are invaluable for raising global awareness and monitoring large-scale deforestation. However, for the precise, plot-level monitoring required by the EUDR, these solutions fall short. They often misclassify perennial crops, lack real-time data integration, and fail to align with specific legal definitions. To navigate the complexities of EUDR compliance, businesses must adopt custom EUDR solutions like OpenAtlas' VANTAGE-X tool and Finboot’s MARCO Track & Trace platform, which ensure accuracy, minimise false positives, and reduce the risk of costly fines.
For more information on how OpenAtlas and Finboot can help your business meet EUDR compliance, feel free to contact us for a demo.
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