Short Paper on Global Deforestation and Greening Commodity Supply Chains

The report examines the drivers of global deforestation, specifically focusing on the role of agriculture and cattle production. It highlights China's significant influence as a major importer of these commodities and proposes a two-pronged approach—short-term demand signals and long-term systemic support—to transition toward deforestation-free supply chains. The document analyzes various certification schemes, traceability tools, and jurisdictional approaches, while providing case studies from companies like COFCO International and Mars Wrigley to illustrate practical implementation of sustainability policies.

• Cattle production is the primary direct driver of global forest loss, followed by palm oil, soybeans, cocoa, rubber, and pulp and paper, which collectively account for 57% of total forest loss.
• China holds a powerful position to influence global supply chains as the world's largest importer of soybeans (60%), beef (17%), and timber (33%), and the second largest importer of palm oil (12%).
• Voluntary corporate commitments to clean up supply chains are often difficult to monitor and audit, leading to a high risk of greenwashing and failure in implementation.
• Certification schemes like RSPO and RTRS are limited by slow uptake and an inequitable distribution of costs, where smallholders often bear higher production costs while downstream actors profit.
• The report recommends a two-pronged strategy for China: a short-term effort to send a clear demand signal for deforestation-free commodities (e.g., via COP15) and a long-term development of a government-supported monitoring system including 'white' and 'black' lists of suppliers.
• In the beef sector, the 'Produce, Conserve, Include' (PCI) initiative in Mato Grosso, Brazil, serves as a jurisdictional approach model aiming to eliminate illegal deforestation and recover 2.5 million hectares of low productivity pasture by 2030.
• COFCO International has implemented a sustainability-linked loan of USD 2.1 billion, where interest discounts are tied to ESG performance and the increase of soy traceability in Brazil.
• The pulp and paper industry has seen progress through regulatory frameworks like the EU Timber Regulation (2013) and China's amended Forest Law (2020), though loopholes remain regarding the 'knowing' purchase of illegal timber.

APA

Nepstad, I. (2021). Short Paper on Global Deforestation and Greening Commodity Supply Chains. ClientEarth. https://www.clientearth.org/media/xiafex5l/short-paper-on-deforestation-best-practices_revised.pdf

Chicago

Nepstad, Isabel. Short Paper on Global Deforestation and Greening Commodity Supply Chains. ClientEarth, 2021. https://www.clientearth.org/media/xiafex5l/short-paper-on-deforestation-best-practices_revised.pdf.

Wikipedia

{{cite report |last1=Nepstad |first1=Isabel |title=Short Paper on Global Deforestation and Greening Commodity Supply Chains |publisher=ClientEarth |date=May 2021 |url=https://www.clientearth.org/media/xiafex5l/short-paper-on-deforestation-best-practices_revised.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nepstad2021short, author = {Nepstad, Isabel}, title = {{Short Paper on Global Deforestation and Greening Commodity Supply Chains}}, institution = {ClientEarth}, year = {2021}, month = may, url = {https://www.clientearth.org/media/xiafex5l/short-paper-on-deforestation-best-practices_revised.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }