Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International Trade Policy

The document explores the intersection of voluntary sustainability standards (VSSs) and international trade policy to combat deforestation. It details the design, implementation, and assurance mechanisms of VSSs for commodities like cocoa, palm oil, soy, and timber, noting that while they have demonstrated positive impacts, results are often context-specific. The brief categorizes forest-related provisions in free trade agreements (FTAs) into declarative clauses, cooperation provisions, and binding commitments, highlighting a shift from purely promotional references to mandatory requirements. A key example is the EFTA-Indonesia CEPA, which links preferential tariffs to sustainability certifications. The document also discusses the EU's FLEGT regulation and the UK's proposed due diligence laws as mandatory alternatives or complements to VSSs, concluding that a multi-pronged approach combining regulation and VSSs is necessary to address global deforestation.

• Voluntary Sustainability Standards (VSSs) for forest-risk commodities (cocoa, palm oil, soybean, and timber) utilize specific cut-off dates to prohibit the certification of land converted from forest to agriculture. For example, the RSPO uses a 2005 cut-off date, the ProTerra standard uses 2008, and the Rainforest Alliance uses January 1, 2014.
• VSSs employ various assurance systems to verify compliance, including independent certification audits, verification audits, and self-reporting. To combat fraud and land clearance, some standards are integrating technology, such as the Rainforest Alliance requiring GPS coordinates for cocoa farmers in West Africa and the FSC using a GIS and Earth Observation Portal for real-time monitoring.
• Research indicates that VSSs have produced mixed results in preventing deforestation, with impacts being highly dependent on location and context. While some reports suggest VSSs have the most demonstrated positive impact at the farm and plantation levels, they are viewed as only one tool among many.
• Environmental provisions in free trade agreements (FTAs) generally fall into three categories: declarative clauses (the most common), cooperation provisions (often found in Latin American, Japanese, and Korean FTAs), and specific commitments (such as the EU's Trade and Sustainable Development chapters).
• The EFTA-Indonesia Comprehensive Economic Partnership Agreement (CEPA) introduces an innovative approach by granting preferential tariff treatment to vegetable oils and derivatives that meet sustainability requirements, specifically requiring RSPO, ISCC, or POIG certification for imports into Switzerland.
• The EU's Forest Law Enforcement, Governance and Trade (FLEGT) regulation uses Voluntary Partnership Agreements (VPAs) to establish legality assurance systems (LAS). These systems ensure timber imports are from legal sources based on national standards, with Indonesia being the only country currently able to issue FLEGT licences.
• The United Kingdom is introducing a new law via the Environment Bill 2019-2021 that will prohibit large companies from using agricultural commodities produced in breach of the laws of the country of origin and will impose mandatory due diligence requirements to detect illegal deforestation.

APA

Larrea, C., Leal, S., Sarmiento, F., & Voora, V. (2021). Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International Trade Policy. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-10/voluntary-sustainability-standards-forest-conservation-trade-policy.pdf

Chicago

Larrea, Cristina, Soledad Leal, Florencia Sarmiento, and Vivek Voora. Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International Trade Policy. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-10/voluntary-sustainability-standards-forest-conservation-trade-policy.pdf.

Wikipedia

{{cite report |last1=Larrea |first1=Cristina |last2=Leal |first2=Soledad |last3=Sarmiento |first3=Florencia |last4=Voora |first4=Vivek |title=Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International Trade Policy |publisher=International Institute for Sustainable Development |date=October 2021 |url=https://www.iisd.org/system/files/2021-10/voluntary-sustainability-standards-forest-conservation-trade-policy.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{larrea2021voluntary, author = {Larrea, Cristina and Leal, Soledad and Sarmiento, Florencia and Voora, Vivek}, title = {{Voluntary Sustainability Standards, Forest Conservation, and Environmental Provisions in International Trade Policy}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = oct, url = {https://www.iisd.org/system/files/2021-10/voluntary-sustainability-standards-forest-conservation-trade-policy.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }