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Can supply chain laws prevent deforestation in the Democratic Republic of the Congo and Indonesia?

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  • Partzsch, Lena
  • Müller, Lukas Maximilian
  • Sacherer, Anne-Kathrin

Abstract

There is a new trend toward public supply chain-related laws which demand information from companies on imported products. The European Union's (EU) Renewable Energy Directive (RED) and Timber Regulation (EUTR) exemplify this new type of law. In both cases, companies have to prevent deforestation in their supply chains. The Democratic Republic of the Congo and Indonesia, both among those countries with the world's highest deforestation rates, support supply chain laws on paper, but there are serious implementation deficits in practice. Using a tripartite framework developed by Cashore and Stone, our study addresses this alleged contradiction and explains deficits inherent in the laws based on the analysis of policy documents, expert interviews and field research. We find that companies take advantage of opportunities to shift exports to less regulating countries. EU member states exercise their purchasing power too cautiously over intermediary (manufacturing) countries in the supply chain, especially China. Finally, despite possibilities of public action, sanctioning is largely left to the private sector.

Suggested Citation

  • Partzsch, Lena & Müller, Lukas Maximilian & Sacherer, Anne-Kathrin, 2023. "Can supply chain laws prevent deforestation in the Democratic Republic of the Congo and Indonesia?," Forest Policy and Economics, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:forpol:v:148:y:2023:i:c:s1389934122002167
    DOI: 10.1016/j.forpol.2022.102903
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    References listed on IDEAS

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    1. Benjamin Cashore & Michael W. Stone, 2014. "Does California need Delaware? Explaining Indonesian, Chinese, and United States support for legality compliance of internationally traded products," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 49-73, March.
    2. Christine Overdevest & Jonathan Zeitlin, 2018. "Experimentalism in transnational forest governance: Implementing European Union Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreements in Indonesia and Ghana," Regulation & Governance, John Wiley & Sons, vol. 12(1), pages 64-87, March.
    3. Sarah L. Stattman & Aarti Gupta & Lena Partzsch & Peter Oosterveer, 2018. "Toward Sustainable Biofuels in the European Union? Lessons from a Decade of Hybrid Biofuel Governance," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    4. Lesniewska, Feja & McDermott, Constance L., 2014. "FLEGT VPAs: Laying a pathway to sustainability via legality lessons from Ghana and Indonesia," Forest Policy and Economics, Elsevier, vol. 48(C), pages 16-23.
    5. Obidzinski, Krystof & Dermawan, Ahmad & Andrianto, Agus & Komarudin, Heru & Hernawan, Dody, 2014. "The timber legality verification system and the voluntary partnership agreement (VPA) in Indonesia: Challenges for the small-scale forestry sector," Forest Policy and Economics, Elsevier, vol. 48(C), pages 24-32.
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    Cited by:

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