# Regulatory Mappings # EUDR — EU Deforestation Regulation ## EUDR — EU Deforestation Regulation Deadline: 30 December 2026 Large & Medium OperatorsEU Regulation 2023/1115. Requires operators placing commodities (coffee, cocoa, cattle, soy, palm oil, wood, rubber) on the EU market to prove they are deforestation-free and produced in compliance with local laws. ### Framework Mapping

EUDR Requirement	Article	Framework Component
Geolocation of production plots	Art. 9	KoboToolbox GPS polygon → UNTP DTE with `cth:GpsPrecision` SHACL shape
Deforestation-free assessment	Art. 10	IDEAM raster overlay → `cth:DeforestationDataVintage` ≤24 months
Due Diligence Statement	Art. 4	Automated EUDR DDS export from compliance API; signed as UNTP DCC
Supply chain traceability	Art. 9(1)(g)	UNTP Digital Traceability Event chain from farm → cooperative → exporter
Country risk classification	Art. 29	High/standard/low risk country flag auto-applied from EU country benchmarking list
Substantiated concern	Art. 31	Whistle-blower endpoint; triggers Steward review workflow

### Data Pipeline KoboToolbox field submission → SHACL validation (R-SUB-01) → FPIC check (R-SUB-02) → IDEAM deforestation overlay → Validator DCC signature (R-VAL-01) → EUDR DDS export → OID4VP presentation to EU customs

ℹ️ The same UNTP DTE used for EUDR compliance is the shared evidence layer for Article 6.4 carbon credits. No duplicate data collection required.

# CSRD — Corporate Sustainability Reporting ## CSRD — Corporate Sustainability Reporting Directive Early Adoption: FY2026 Mandatory: FY2027EU Directive 2022/2464. Requires large companies to report on sustainability impacts under European Sustainability Reporting Standards (ESRS). Climate-relevant standards: ESRS E1 (Climate Change) and ESRS E4 (Biodiversity). ### Framework Mapping

CSRD Requirement	ESRS	Framework Component
GHG emissions Scope 1/2/3	ESRS E1-6	IoT sensor data + satellite biomass estimates → emission factor calculations
Transition plan	ESRS E1-1	Not in scope for framework v1.0 — requires company-level data
Biodiversity impact	ESRS E4-5	KoboToolbox biodiversity surveys → PROV-O linked to parcel DTEs
Value chain engagement	ESRS G1-3	Supplier credential status dashboard — are all cooperatives EUDR-certified?
Double materiality	ESRS 1 §25	Framework provides data layer; materiality assessment remains with reporting company

⚠️ **Important:** CSRD requires double materiality assessment — both financial materiality (how climate affects the company) and impact materiality (how the company affects climate). The framework provides the impact data layer; financial materiality analysis is out of scope.

# CBAM — Carbon Border Adjustment Mechanism ## CBAM — Carbon Border Adjustment Mechanism First Declaration: September 2027 For 2026 ImportsEU Regulation 2023/956. Requires EU importers to declare the embedded carbon in imported goods (cement, iron, steel, aluminium, fertilisers, electricity, hydrogen). Coffee is not currently in scope but is expected in Phase 2 (2030+). ### Framework Mapping (Phase 2 readiness)

CBAM Requirement	Article	Framework Component
Embedded carbon calculation	Art. 7	IoT sensor + satellite biomass data → emission intensity per tonne
Third-party verification	Art. 10	Accredited Validator DCC (R-VAL-03 — CBAM requires validation, unlike EUDR DDS)
Production country emissions factor	Art. 7(2)	IDEAM national emissions inventory integration
CBAM certificate surrender	Art. 22	Out of scope — EU importer action; framework provides the data package

ℹ️ CBAM currently covers energy-intensive industries, not agricultural commodities. However, EU CBAM Phase 2 expansion to include coffee and cocoa is under discussion. Building CBAM-compatible data structures now creates optionality.

# ISSB IFRS S2 — Climate Disclosures ## ISSB IFRS S2 — Climate-Related Disclosures Brazil CVM: Jan 1 2026 Mexico CNBV: FY2025IFRS Sustainability Disclosure Standard S2 — Climate-related Disclosures. Mandatory for listed companies in Brazil (CVM Resolution 193) and Mexico (CNBV circular). Aligned with TCFD framework. ### Framework Mapping

IFRS S2 Requirement	Paragraph	Framework Component
Physical climate risks	§9	Satellite climate data overlay on farm parcels → risk scoring per asset
Transition risks	§10	Regulatory status tracker — EUDR compliance rate for supply chain
GHG metrics	§29	IoT + satellite emission estimates → verified by Accredited Validator
Climate scenario analysis	§22	Not in framework scope — requires financial modelling layer
Scope 3 value chain	§29(a)	Supplier EUDR status as proxy for Scope 3 land-use change emissions

**Why This Matters for CTH** Colombian and Peruvian coffee exporters supplying Brazilian and Mexican listed companies must provide IFRS S2-compatible climate data to their buyers. The framework enables exporters to generate investor-grade climate disclosures from the same field data used for EUDR compliance.

# Article 6.4 — Paris Agreement Carbon Credits ## Article 6.4 — Paris Agreement Carbon Credits UNFCCC Mechanism Operationalised 2024Article 6.4 of the Paris Agreement establishes a UN-supervised carbon crediting mechanism (successor to CDM). Article 6.4 Emission Reductions (A6.4ERs) are the highest-integrity carbon credits — issued by the UNFCCC Supervisory Body, not private standard bodies. ### The Shared Evidence Layer Innovation

**One DTE → Two DCCs** The same UNTP Digital Traceability Event (DTE) that proves deforestation-free coffee production for EUDR also serves as the shared evidence layer for an Article 6.4 carbon credit. Two Digital Conformity Credentials are issued against the same DTE: (1) EUDR Due Diligence Statement, (2) Article 6.4 Emission Reduction certificate. This eliminates duplicate data collection and double-counting risk.

Article 6.4 Requirement	Framework Component
Additionality demonstration	Baseline deforestation rate from IDEAM raster vs. current parcel status
Permanence monitoring	Annual IoT + satellite biomass comparison against baseline DTE
Leakage assessment	Adjacent parcel monitoring — IDEAM deforestation flag propagation
Corresponding adjustment	Requires host country (Colombia) approval — CTH provides data package to IDEAM/MADS
Third-party validation	R-VAL-03: Accredited Validator DCC required (UNFCCC-approved Designated Operational Entity)
Registry issuance	A6.4ER registry (UNFCCC) — CTH provides data; registry issues the credit

⚠️ **Important:** Article 6.4 requires a Corresponding Adjustment from Colombia — the host country must formally authorise the credit transfer. This is a government process, not a data process. CTH facilitates by providing the MADS/IDEAM with the data package; the political decision is outside the framework.

ℹ️ The commercial case: a 1-hectare deforestation-free coffee parcel in Chocó generates approximately 8-12 tCO₂e/year in avoided deforestation. At Article 6.4 prices (~$15-40/tCO₂e), this represents $120-480/ha/year in additional farmer income on top of the EUDR compliance premium.