{"id":815523,"date":"2024-12-29T02:13:24","date_gmt":"2024-12-29T08:13:24","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/29\/eudr-wont-impact-brazils-paper-and-pulp-industry\/"},"modified":"2024-12-29T02:13:24","modified_gmt":"2024-12-29T08:13:24","slug":"eudr-wont-impact-brazils-paper-and-pulp-industry","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2024\/12\/29\/eudr-wont-impact-brazils-paper-and-pulp-industry\/","title":{"rendered":"EUDR won\u2019t impact Brazil\u2019s paper and pulp industry"},"content":{"rendered":"
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  7. EUDR won\u2019t impact Brazil\u2019s paper and pulp industry<\/li>\n<\/ol>\n<\/div>\n

    As the European Union\u2019s deforestation-free products regulation (EUDR) inches toward implementation, Brazil\u2019s paper and pulp industry players are confident that the incoming rules will not affect operations.<\/p>\n

    According to a Mongabay\u00a0report<\/a>, sector players say that most participants adhere to global best practices, sourcing their wood from authorized land. Service providers in the multi-billion dollar industry argue that the ecosystem leans on \u201ctraceable supply chains.\u201d<\/p>\n

    The EUDR, set to come into operation in 2025, seeks to outlaw commodities linked to illegal deforestation from entering Europe. Initially scheduled for launch in late 2024, a few regulatory roadblocks have seen the widely anticipated rule book postponed for another 12 months.<\/p>\n

    Despite the far-reaching consequences of the regulations, Brazilian logging companies (Ib\u00e1) are unfazed, noting that nothing will change. In their defense, they have a 20-year track record of employing \u201cfrom farm to factory\u201d\u00a0supply chain systems<\/a>\u00a0in their operations.<\/p>\n

    However, to fulfill the provisions of the EUDR, players in the sector must implement blockchain-based systems. These\u00a0enterprise Web3 solutions<\/a>\u00a0will not come cheap for Brazilian sector players and may translate to an increase in prices.<\/p>\n

    \u201cAlthough for Ib\u00e1\u2019s members the [EUDR] adjustments have not changed their business model, nevertheless they have demanded and will continue to demand higher production costs,\u201d said an association spokesperson.<\/p>\n

    There is a consensus that the mainstream\u00a0adoption of blockchain<\/a>\u00a0will improve operations and stifle the remaining pockets of illegal deforestation.\u00a0Blockchain\u2019s immutability<\/a>\u00a0and transparency will serve as twin pillars in the pursuit of traceability, ensuring that every batch bears the name of the specific farms.<\/p>\n

    Several firms are already taking tentative steps toward implementing blockchain solutions in addition to their existing attempts at achieving transparency for\u00a0EU regulation<\/a>. Pulp and paper firm Suzano Papel e Celulose disclosed plans for an in-house blockchain solution that is expected to provide\u00a0smart contract and tokenization functionalities<\/a>.<\/p>\n

    Brazil has made public its intention to embrace blockchain across all facets of its economy. However, the push for Web3 permeation appears low, largely in favor of financial markets with the renewed push for tokenization and central bank digital currencies (CBDCs).<\/p>\n

    In 2023, the\u00a0digital real<\/a>\u00a0debuted on a publicly distributed ledger, accentuating months of research from the banking regulator. Since then, the regulator has pursued a tokenization agenda, roping in commercial giants to participate in its blockchain pilot programs.<\/p>\n

    Northern Trust inks deal in Singapore to explore tokenized green assets<\/strong><\/p>\n

    In other news, Financial giant Northern Trust (NASDAQ: NTRS<\/a>) has completed the signing of a deal with the National University of Singapore to deepen Web3 exploration for capital market processes.<\/p>\n

    The\u00a0agreement<\/a>\u00a0will involve a collaboration between both entities to establish sustainable finance frameworks revolving around the innovative use of blockchain technology. The multi-year study will focus on\u00a0tokenizing real-world financial assets<\/a>\u00a0with an eye on sustainability.<\/p>\n

    To achieve this, both entities will develop a novel framework for\u00a0tokenizing green assets<\/a>\u00a0to support enterprises in meeting their sustainability goals.\u00a0<\/p>\n

    Tokenizing green assets involves the creation of digital tokens on blockchains that represent\u00a0environmentally sustainable assets<\/a>. Northern Trust will dabble in tokenizing carbon credits, renewable energy projects, and sustainable real estate in the arrangement with the National University of Singapore.<\/p>\n

    Experts say the $1.6 trillion asset manager will turn its gaze to carbon credits, widely considered the lowest-hanging fruit in the quest for tokenizing green assets. Academics from the university and the financial muscle of the asset manager are expected to provide steam for further exploration of other sustainable asset classes.<\/p>\n

    Northern Trust\u2019s head of financial markets, Justin Chapman, described the partnership as a step in the right direction for the local financial ecosystem while expressing optimism about emerging as the leading global hub for tokenized green assets.<\/p>\n

    \u201cThis collaboration with NUS represents a significant step forward in our efforts to harness blockchain technology for the betterment of sustainable finance,\u201d said Chapman. \u201cBy bringing the green credentials of bonds on-chain, we are addressing investors\u2019 need for transparency and reporting in a fast-evolving market.\u201d<\/p>\n

    The recent partnership follows an internal beehive of activity leading to the naming of a new head of client development for Southeast Asia and a new digital solutions consultant for the wider Asia Pacific.<\/p>\n

    Going head-to-head with Hong Kong<\/strong><\/p>\n

    Experts opine that Singapore\u2019s latest plays with tokenization are a valiant attempt to catch up with Southeast Asia\u2019s leader, Hong Kong. There is a consensus that Hong Kong\u2019s giant strides with tokenization have left Singapore playing second fiddle despite an impressive head start.<\/p>\n

    Hong Kong is still basking on the success of its\u00a0green bonds<\/a>\u00a0and its two iterations, pulling in a combined $800 million and drawing participation from financial heavyweights.\u00a0<\/p>\n

    Dubbed\u00a0Project Evergreen<\/a>, the Hong Kong Monetary Authority (HKMA) disclosed that the\u00a0green bonds \u201cshowed the potential in DLT\u201d<\/a>\u00a0in improving liquidity and transparency in bond markets.<\/p>\n

    \u201cThe SFC sees the potential benefits of tokenisation to the financial markets, particularly in increasing efficiency, enhancing transparency, reducing settlement time and lowering costs for traditional finance,\u201d said Hong Kong\u2019s Securities and Futures Commission (SFC) in support of the HKMA. <\/p>\n

    Watch: Richard Baker on engineering a smarter financial world with blockchain<\/p>\n