Blockchain as a Tool for Sustainability and Legality in the Timber Trade—A Study in the Context of the EUDR

Abstract

Blockchain technology (BCT) is often discussed as digital support for timber traceability in the context of the EU Deforestation-Free Products Regulation (EUDR), which requires operators and traders to demonstrate legality, deforestation-free production, geolocation at the forest parcel level, and verifiable supply chain documentation from 30 December 2026, with an extended timeline for micro, small, and medium-sized enterprises (SMEs) until 30 June 2027. This study assesses where BCT can realistically add value in timber supply chains under operational forestry conditions and identifies the necessary technical, organizational, and legal prerequisites. A combination of a targeted literature review and empirical input from experts in the forestry and timber industry, including guided expert web-conferencing interviews (n = 41), an online survey (n = 69 completed responses), and a transdisciplinary workshop (n = 18) was utilized to obtain a comprehensive overview of industry perspectives. Qualitative data from interviews and workshop sessions were analyzed using structured qualitative content analysis, while survey data were evaluated using descriptive statistics. The expected benefits are associated with the introduction of tamper-proof timber harvesting practices and cross-organizational verification mechanisms. To address the discrepancy between biological uncertainty and digital rigidity, the study proposes a dynamic allocation model adapted from the energy sector that distinguishes between fixed and variable wood capacities to automate logistical planning via smart contracts. However, respondents emphasize that practical obstacles, such as limited digital maturity in forestry, fragmented data infrastructures across the supply chain, and unresolved issues of data sovereignty hinder the implementation of BCT. BCT alone is unable to resolve the problem of weak physical-digital identity continuity, a phenomenon widely known as the oracle problem; however, coupling the ledger with physical or biological anchors (e.g., photo-optical, automated inkjet marking identification) can re-establish this physical–digital continuity and thereby resolve the oracle problem. The results demonstrate that blockchain acts most plausibly as a supporting component within hybrid traceability architectures that prioritize event-based authentication, off-chain data processing where appropriate, and integration with existing certification systems. The study highlights the necessity of defining distinct organizational roles and responsibilities while integrating user-centric digital solutions tailored specifically to small and medium-sized enterprises (SMEs).