Why we need deforestation-free supply chains

From 30 December 2024, the European Union Deforestation-free Products Regulation (EUDR) must be applied. Smallholders are also indirectly affected by the EUDR if they do not want to lose access to the EU market. In this policy paper, we first provide a brief overview of the challenges faced by smallholders regarding the higher requirements and also evaluate a series of targeted interviews with representatives of various industries and organisations that have already gained experience with the introduction of higher sustainability standards for smallholders and the traceability of supply chains.

China's recent international commitments and domestic approaches to mitigating the environmental and social threats associated with global deforestation are plentiful but not sufficient, especially when compared to its peer and competitor, the EU. Our innovative flashcards provide key recommendations on how to strengthen the systematic approach to curate further dialogue and co-operation with stakeholders, especially by highlighting the key ministries' roles in greening the global supply chain. Ultimately, we encourage China to advance its commitment and policy to reduce global deforestation resulting from soft commodity supply chains.

Deforestation was one of the crucial issues at COP28 in Dubai. The negotiation outcome underscored its importance for the first time with a goal of ending global deforestation by 2030. Notwithstanding, deforestation continues. What exactly was decided at COP28? And where is more action needed?

In our new policy brief, we analyse along with Climate & Company and Rechtsanwälte Günther why sustainability due diligence obligations for financial institutions are key to achieving the EU's climate goals. As an example for this tool, we draw on due diligence obligations for financial institutions to avoid financing projects that cause deforestation. In addition, the policy brief presents specific recommendations for regulating financial actors through the EU Corporate Sustainability Due Diligence Directive (CSDDD).

In our new briefing, Germanwatch and the sustainable finance think tank Climate & Company analyse the expected reporting and due diligence obligations in the financial sector across a number of key EU regulatory measures on sustainability. In particular, the briefing focuses on potential obligations resulting from the respective regulatory measures that may help to identify and minimise the risk of deforestation.

The EU Commission announced the successful conclusion of negotiations on a regulation for deforestation-free products. Companies will therefore soon have to prove that no forest is cleared for the production of certain agricultural goods and wood products. An important step – but the law also has weaknesses. Germanwatch presents an initial assessment.

The expansion of agricultural land for the production of animal feed or palm oil is the biggest driver of loss and degradation of forests and other natural ecosystems worldwide. The EU’s demand for these so-called forest and ecosystem risk commodities plays a significant part in global deforestation linked to international trade.