The European Union and United Kingdom's deforestation-free supply chains regulations: implications for Brazil

Susan E.M. Cesar de Oliveira*, Louise Nakagawa, Gabriela Russo Lopes, Jaqueline C. Visentin, Matheus Couto, Daniel E. Silva, Francisco d'Albertas, Bruna F. Pavani, Rafael Loyola, Chris West

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper analyses the potential implications of the proposed European Union Deforestation Regulation (EUDR) and the recently adopted United Kingdom (UK) legislation on deforestation-free supply chains (henceforth ‘the legislation’) for different stakeholders in Brazil. These regulations intend to address global commodity-driven deforestation and forest degradation by ensuring that targeted commodities and products placed on (or exported from) markets are of minimal risk of being associated with - in the EU - deforestation and forest degradation or - in the UK - illegal deforestation. The paper examines potential compliance readiness in cattle, cocoa, coffee, palm oil, soybean and tropical timber supply chains in Brazil, indicating specific challenges that may arise. Through the construction of a “Compliance Likelihood Index”, our research provides comparable indications to policymakers on sectors and stakeholders that may need stronger support to meet the requirements, in order to maintain Brazil's access to EU and UK markets. The paper indicates that coffee is the sector with the highest level of incentivization and smallest hurdles for compliance, while the cattle sector may face stronger challenges to rapidly adjust its production system towards a deforestation-free value chain and prove compliance. Results of our analysis also highlight the need for collaboration between the EU/UK and Brazil in order to promote alignment between domestic and demand-side legislations so that they are mutually reinforcing. Results of this exercise, which has a focus on the producer-country view of demand-side legislation, will contribute to discussions on the merits of different approaches to strengthen the governance of deforestation-risk commodity trade.

Original languageEnglish
Article number108053
Number of pages12
JournalEcological Economics
Volume217
Early online date5 Dec 2023
DOIs
Publication statusPublished - Mar 2024

Bibliographical note

© 2023 The Authors. Published by Elsevier B.V.

Funding Information:
We acknowledge funding from the UK Research and Innovation's Global Challenges Research Fund (UKRI GCRF) through the Trade, Development and the Environment Hub project (project number ES/S008160/1 ) and financial support of the European Union through the project Eat4Change. This work also received the financial support from the project “Sustainability and added value of agricultural supply chains”, funding of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) under the agreement n. 81271672/18.0128.1-108.99 , project number 10347832/213/14029/UH . The publication contents are the sole responsibility of the authors and do not necessarily reflect the views of the European Union, the UKRI nor GIZ. Funding sources did not have a direct role in any stages of the research.

Keywords

  • Brazil
  • Commodity supply chain
  • Deforestation-free
  • Governance
  • International trade

Cite this