Deforestation-Free Commodity Supply Chains: Myth or Reality?

Abstract

Since the early 2000s, many private companies, public-private coalitions, and governments have committed to remove deforestation from commodity supply chains. Despite these zero-deforestation commitments (ZDCs), high rates of deforestation persist and may even be increasing. On the upside, a few region- and commodity-specific ZDCs have contributed to reductions by up to hundreds of thousands of hectares of deforestation, with mixed evidence on associated leakage. ZDCs have also spurred progress in monitoring, traceability, and awareness of deforestation. On the downside, as currently implemented, supply chain initiatives only cover a small share of tropical deforestation. Government- and company-led ZDCs are just two components of broader policy mixes aimed at reducing deforestation. To be more impactful, ZDCs needs to cover entire biomes, supply bases of companies, and export and domestic markets, with special attention not to exclude marginal producers.