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EU deforestation regulation is coming
With 3 months to go, we remind readers that the EU Deforestation Regulation comes into force on 30 December 2025. It is especially relevant to BMF members in Northern Ireland due to its special status under the NI Protocol and the Windsor Agreement. Our colleagues at Timber Development UK are pressing DEFRA for a decision or guidance on how the EUDR will apply to Northern Ireland. For now, the TDUK and BMF advice is to assume the 30 December 2025 date applies - and to prepare accordingly. The European Commission has published a set of frequently-asked questions that you can find here: https://
green-business.ec.europa. eu/deforestation-regulation- implementation_en
In June 2023, the European Commission adopted a new regulation to prevent illegal logging, deforestation and habitat loss - called the EU Deforestation- Free Regulation 2023/1115 - that will replace the existing EU Timber Regulation.
The EUDR applies to goods made from certain commodities that cannot be placed on the EU market (or exported out of the EU) unless prescribed conditions are met - notably a due diligence statement with geo-location &
+1.4%. Taking account of one fewer trading day, like-for-like sales rose by +3.9%. Over the latest 12-month period, sales value was up +2.0%. Volumes grew by +3.9%, though this was offset by lower prices (-1.9%). Adjusted for one additional trading day, like-for-like sales increased by +1.5%.
BMF responds to another CHMM consultation
The Department of Energy Security & Net Zero (DESNZ) has closed its latest consultation on proposed changes to the Clean Heat Market Mechanism, ahead of the scheme’s second year of operation. This marks the fourth consultation the BMF has responded to since the policy was first put forward in October 2021.
Target levels harvesting evidence.
Brussels wants to stop the expansion of agriculture in forests linked to the production of (among others) meat, palm oil, coffee & rubber. For BMF members, this means timber and wood-based materials like paper & pulp. Inevitably, it means more due diligence, upholding environmental regulations, keeping traceability records, complying with local employment laws, and vigilance against the possibility of slavery or corruption. The EUDR comes fully into force on 30 December 2025 and the EU Timber Regulation ceases on that date. You must be able to prove the goods (a) do not come from deforested land, (b) have not contributed to forest degradation, or (c) broken local laws in the country of origin. For SMEs, the deadline to comply is 30 June 2026.
The UK Timber Regulation is not affected and it remains in force. We are not aware of any moves to repeal or update the UKTR.
While headline value growth provides some optimism, the reliance on pricing rather than underlying demand signals a cautious outlook for the second half of 2025.
• For more details or to download the report, visit
www.phmi.co.uk.
September 2025
www.buildersmerchantsjournal.net
Government plans would raise the year two target (from April 2026) from 6% to 8-10% of relevant boiler sales. That equates to 90,000 to 130,000 heat pump credits, based on the assumption of steady market growth underpinned by taxpayer- funded schemes such as the Boiler Upgrade Scheme.
Above: Miatta Fahnbulleh, minister for energy consumers
The BMF is deeply concerned that the consultation was launched in early May, just weeks after the scheme’s start on 1 April. With only a few weeks’ trading having taken place, very little solid data exists on which to base any decisions regarding increased targets & fines. As it is currently configured, the CHMM does not encourage consumer demand in and of itself - it is nothing more than a straightforward tax on a small group of British boiler manufacturers.
Certification scheme
DESNZ also intends to mandate the Microgeneration Certification Scheme as the sole certification scheme - removing the option for alternatives. The BMF warned this risks undercounting installations: many small- and micro-businesses fit too few heat pumps annually to justify MCS membership, leaving their work unrecorded. We view it as unfair that each unrecorded installation means a £500 fine for boilermakers through no fault of their own.
Conclusion
In our submission, the BMF urged the DESNZ to consider wider challenges. The current size of the available workforce to install heat pumps is nowhere near what the UK needs. Most of the training to create that workforce is carried out by boilermakers who will now be missing quotas and getting fined, leading to cuts in training budgets. That is why we suggested to DESNZ that they looked at awarding credits to manufacturers who devote time, effort and money to help boost the overall number of qualified installers. We also asked the Department to re-balance the cost of energy. The medium-term economics of heat pumps do not make sense with the current differential between gas and electricity prices: the so-called ‘spark gap’. Without addressing this, the economic case for heat pumps remains weak, undermining uptake regardless of government targets.
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